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Mortgage Providers

  • 16-11-2021 11:19am
    #1
    Tim76
    Registered Users Posts: 955 ✭✭✭


    Hi all,

    Looking to get a mortgage approved at the moment. We have only contacted one bank so far (one of the major ones). But just wondering if it is prudent to shop around and get approval from a number of places at the same time. I know you can switch mortgages down the line so it may not be such a big deal.

    I'm a newbie to all this so any advice appreciated!



Comments

  • #2
    Plasmoid
    Registered Users Posts: 119 ✭✭Plasmoid


    It absolutely does make sense to shop around, even if you have a preferred bank.

    The one thing to watch out for is fees - like Valuation fees. Some banks will pay for offer to pay for your Valuation and use their own Valuer, some have a relatively short list of approved Valuers and will not offer anything towards it. You should though be able to get to Loan Offer without these costs.

    I found that both on initial Mortgage and on switching that banks are very inconsistent with how quickly and smoothly the process goes.

    Some are fast at first, but have terrible underwriting communication process (e.g. endless questions one at a time with no common sense)

    Some are slow at all times, unless you start mentioning all the other banks you have approval with already - especially if you talk to a Human.


    Depending on the timescale, banks also change their offers often enough that it can be useful to have the foot in the door with them rather than start from scratch. It looks like every quarter there is a bit of shuffle in the best deals - although with UB and KBC leaving that could slow.



  • #3
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,363 Mod ✭✭✭✭Jim2007


    https://www.boards.ie/discussion/2058218186/mortgage-providers

    I would have thought your first application would have been to the one with the most interesting offerings for you, no?



  • #4
    Q&A
    Registered Users, Registered Users 2 Posts: 561 ✭✭✭Q&A


    There's a wide range of rates out there. You can get a low of 1.95% from a couple of non-banks to a high 4.5% with a bank.

    Over the lifetime of a mortgage that difference would mean you pay over 2.5 times as much interest of you went with the more expensive loan.

    Put another way of your borrowed 100k for 30 years at 1.95% you'd expect to pay a little over 32k in interest. Whereas borrowing the same amount at 4.5% will cost you 82k i.e., over 50k more.

    Yes your can switch mortgages but there are costs associated with that. Aim to start with the best mortgage available that suits your current circumstances. You can evaluate periodically.



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