Switching Mortgage with an exception rate

Captain Flaps

Here's a hypothetical, because I've not yet even drawn down the mortgage on our impending purchase.

We were given an exception rate of 4.5x (yes yes, I know, doom and gloom boom is back etc, made a lot of sense for us to pursue that rate as it's offset by savings elsewhere considering where we've bought). We went with the bank that would give us that exception at a rate we were comfortable with, but if I want to switch in a few years does having the exception lent affect our ability to move the mortgage or is it a case of the hurdle being approval in the first place?

Example - AIB will do a 4.5 rate, Ulster Bank won't. Will Ulster Bank encourage me to switch my AIB mortgage to them considering they don't grant these levels of exceptions themselves? This is just an illustrative example, my mortgage isn't being drawn down from either of these.

68 lost souls

Captain Flaps wrote: »

Here's a hypothetical, because I've not yet even drawn down the mortgage on our impending purchase.

We were given an exception rate of 4.5x (yes yes, I know, doom and gloom boom is back etc, made a lot of sense for us to pursue that rate as it's offset by savings elsewhere considering where we've bought). We went with the bank that would give us that exception at a rate we were comfortable with, but if I want to switch in a few years does having the exception lent affect our ability to move the mortgage or is it a case of the hurdle being approval in the first place?

Example - AIB will do a 4.5 rate, Ulster Bank won't. Will Ulster Bank encourage me to switch my AIB mortgage to them considering they don't grant these levels of exceptions themselves? This is just an illustrative example, my mortgage isn't being drawn down from either of these.

Depending on timeline and salaries, in a few years time when you are looking to switch mortgages will you still need the exception? Could be a case of in 5 years time you have paid off some of the mortgage, earn a bit more and possibly can pay a lump off allowing you to need 3.5 times salary?

tobsey

So long as you are less than 80% LTV then I'd say any bank will talk to you. The lower the LTV the better your case would be too.

Captain Flaps

Thanks for the responses and sorry for the delay. We're actually borrowing at a 90% LTV and I would expect we will still need the exception in 5 years alright.

uberwolf

Captain Flaps wrote: »

Thanks for the responses and sorry for the delay. We're actually borrowing at a 90% LTV and I would expect we will still need the exception in 5 years alright.

switchers are exempt