Sinead Ryan: how to switch mortgage and save money – without the hassles

  • Sinead Ryan: how to switch mortgage and save money – without the hassles
    Independent.t. E.
    Banks regularly and correctly inflated for ripping off customers, but sometimes it’s the customers who can make the best choice to save yourself money.
    https://www.independent.ie/business/personal-finance/sinead-ryan-how-to-switch-your-mortgage-and-save-money-without-the-fuss-37210674.html
    https://www.independent.ie/business/personal-finance/property-mortgages/article37204169.ece/9aaa4/AUTOCROP/h342/property-comment.jpg

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Banks regularly and correctly inflated for ripping off customers, but sometimes it’s the customers who can make the best choice to save yourself money.

The best way to save a bunch of money on switching your mortgage, but less than 1pc of people doing it. They perceive it as too much hassle, expensive and time-consuming. They are right, of course, all these things.

But what if there was a way to switch loans without any fuss? Is, and a lot of people do not believe, and yet, if you live in Dublin, chances are you can switch it, nothing, keeping his own Bank.

Bank of Ireland, KBC and permanent TSB all appeared before the Finance Committee of Parliament recently for their regular rap on the knuckles, TDS was noticed during the charging of high interest on the mortgage. They all said that they have thousands of customers who can take advantage of lower rates but was not.

Now you can argue that they didn’t try hard enough, and the prices are still twice more than other Europeans to pay, but in any Bank there are dozens of interest rates that apply to the mortgage.

This is because each mortgage loan may be considered individually, and banks have written to thousands of customers to tell them that they may qualify for a lower interest rate.

Many are suspicious of the proposal and not to follow.

This week I look at how you can get a lower rate, and what you should do next.

Loan to value indicator. The ratio between the value of your home and the mortgage on it.

A property worth €450,000 with a loan of 300,000 euros has a LTV 66.6 PC, for example.

Housing prices in Dublin have increased significantly since 2011 so that your original LTV can now be much more attractive.

Banks base interest rates on risk: the real estate 50pcs LTV is a better bet than one with 90pc.

In many cases, the Bank even pays for the appraiser to do the math (if not, it costs about €150).

Fixed V variable

If currently you are on a fixed rate, it would be unwise to change it in due time. But then, all bets are off! If your house is worth more at expiration, it is overrated and will ask for your Bank can offer You a full range of services in both fixed and variable rates on offer with a new loan.

You have to tell them that you are ready to move to a new lender, if he does not come up with attractive prices and do your homework on other offers to prove it.

Keep in mind interest rates will rise in the next year, the ECB has already warned, so I may even have to re-enter in a short period of the interest rate; while your Bank is willing to give you an attractive rate to enhance their business for such a long time.

Savings

The transition from 4.5 PC speed 3.1 PC-Bank mortgage loan in Ireland of € 300,000 will be free up to €250 per month. You can either keep payments the above drawing, or save it elsewhere.

Permanent TSB has “managed variable rate” as currently proposed, whereby, if you qualify for a lower LTV, this will give you a lower interest rate and she will pay for the appraiser.

If you originally took out a standard variable rate (SVR) of 4.5 PC, but now the parents no less than 50pcs, thanks to the growth in property prices, you may be eligible to switch in the amount of 3.7 PC, the result is a monthly savings of $ 42.36 per €100,000 borrowed, doing nothing.

Documents

In contrast, switching to another lender, there is no need to transfer interbank. You don’t need Lawyers and surveyors. It’s just the contract amendment to existing contract for which they may charge a small administration fee.

Life Insurance

Any change to your mortgage is to get a look at the protection policy of the mortgage. The prices are much decreased, with new plans much cheaper than you could have made 10 years ago. Use of an intermediary to compare.

What’s next?

If you think that you can claim, Joey Sheehan, head of credit at MyMortgages.t. ie says: “contact your Bank directly and simply ask what interest rates are available if you keep your mortgage with that particular lender.

“Your next step should be to compare these figures with others in the market. If you decide to fix your existing lender, but to keep the old benefits, to ensure that they have the ability to overpay without penalty”.

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