Switching the mortgage
2 MIN READ
When Wes and Val’s third child was born, their home in Ballymun no longer met the needs of their growing family and they started looking round for a bigger house.
Eventually, they found a three-bedroom semi-d in Glasnevin they liked and arranged a mortgage with another lender to buy it.
A lot of potential but a lot of work
Their new place had great potential but it also needed a great deal of work. “When we bought the house people thought we were crazy,” admits Wes but the couple could see beyond the existing structure and décor to how the house could look if they renovated.
Another reason that they were attracted to it was because it had a 100 foot back garden which meant they could put in an extension. So that’s what they did.
The couple and their three children lived in their new home while it was being renovated and extended, moving from room to room as the work progressed.
Choosing to switch to Bank of Ireland
A couple of years later, when everything was finally completed, they were delighted with the results but decided they wanted to switch their mortgage to a different lender.
They chose to switch to Bank of Ireland. “I’ve always found Bank of Ireland, particularly my own branch in Finglas, very accommodating and very helpful.”
The couple didn’t have to go into the branch during working hours to apply for their new mortgage.
“The guy we were dealing with came out to the house in the evening when it suited us. He was out the house at least three times. Once he even came out at nine o’clock at night, when we had the kids in bed.”
The cashback paid for furniture and the solicitor’s fees
They felt everything was explained really well which gave them the confidence to move forward with Bank of Ireland.
And because they had sunk every penny of their savings into the renovation and extension the cashback they got when they switched came in handy right away. The big extension was empty of furniture.
“So we bought a sofa and a 49-inch, flat screen, smart TV.” The cashback also paid the solicitor’s fees for the new mortgage.
Reducing the mortgage term by switching
The cashback came through quicker than the couple were expecting. Wes remembers logging in online one morning,” I wasn’t checking for the cashback particularly, I was going to pay a bill and there was a nice surprise waiting for me.”
The couple were also able to use switching as an opportunity to reduce the term of their mortgage.
“By switching and keeping the same monthly payments we were able to knock three years off our mortgage term because we were on a higher interest rate with our previous mortgage lender,” says Wes.
Before you switch, you might want to check your credit rating, in advance.
3% Cashback available to First Time Buyers, Movers and Switchers who draw down a new mortgage by 30 June 2019 and hold a Bank of Ireland current account. 2% Cashback on draw down of a new mortgage. 1% bonus in 5 years subject to meeting the conditions of the mortgage. Additional 1% bonus not available for Buy to Let Investment mortgages. The lender is Bank of Ireland Mortgages. Lending criteria and terms and conditions apply. Over 18s only. Mortgage approval is subject to assessment of suitability and affordability. You mortgage your property to secure the loan. We require property and life insurance. Maximum loan is generally 3.5 times gross annual income and 80% of the property value but these limits may vary. A typical mortgage of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). The total amount you pay is €148,114.60. APRC includes €150 valuation fee and mortgage charge of €175 paid to the Property Registration Authority. A 1% interest rate rise would increase monthly repayments by €54.02 per month. [The cost of your monthly repayments may increase – if you do not keep up your repayments you may lose your home].
Cashback is not available with the High Value fixed interest rate.
Bank of Ireland Mortgage Bank trading as Bank of Ireland Mortgages is regulated by the Central Bank of Ireland.
Wes and Val received a small gratuity for their time.
All efforts were made to ensure that the information in this article was accurate at the time of original publication. The content of this article do not constitute financial advice.
Bank of Ireland is regulated by the Central Bank of Ireland.