Great discussion with Robert from Rockwell on how to get a better mortgage deal. Thanks Robert @Rockwell (https://rockwellfinancial.ie/)

– Okay, good afternoon. Justin for talentforce employment. We are all about flexible, professional jobs, getting you the work life fit that you’re after. This time of year, people are regularly looking at their expenses, looking at cutting back on heath insurance, or crash or whatever it is. The elephant in the room when it comes to all of our budgeting is what?

 

 

 

– The mortgage.

– We’re joined by Robert from Rockwell, here. So, mortgages.

– Absolutely. For most families, it’s usually anywhere between a quarter to maybe a third or 40%–

– It’s huge.

– Of your disposable income. So, this time of year we’re looking at ways to trim our expenses so, what better way to do it than look at your biggest outgoing?

– Really, okay.

– The first question is yes, you can switch your mortgage. You absolutely can. You can even get a better rate with your existing bank, believe it or not. So, very simply, it all depends on the value of the property versus the mortgage outstanding, the loan. So, the loan to value.

– The LTV ratio.

– The loan to value. The better the loan to value, i.e, could be 50% loan to value, 60% loan to value.

– Okay, sure.

– The better rate you can qualify for. And you may be even able to qualify for it with your existing bank but they may not have been kind enough to remind you of this fact. So, what you’re gonna have to do is call ’em up. They will send you out a form. You fill it in, you get an independent evaluation report that’s gonna cost you about 150 Euros, but you know in your heart and sole before you do that if its gonna be in your best interests or not. And you submit it back to your bank and they will put you on the best rate they have for that LTV bracket.

– Right.

– But you can switch to another bank if that’s not the best rate in the market. Really, the website’s bonkers.ie, by the way, for comparing the mortgage rate.

– Bonkers.ie, right?

– Yeah, if you can switch to another bank, there are incentives, obviously, to leave, so you can get anything up to 2000 Euros cash or 2%. So, if your mortgage is 300,000, there are banks out there that will give you 6,000 just to switch to them.

– So, it sounds like the older the mortgage gets–

– Yeah.

– The lower the LTV, the less likely it’s advantageous to you.

– To leave?

– To stay.

– Oh, to stay, absolutely!

– It says you should stay.

– Yeah, yeah. You should be reviewing your mortgage every three years. Everyone thinks like, well mortgage is for life. They’re really not, you gotta pay ’em for life.

– Okay.

– But you don’t have to stick with that particular provider for life at all. So, shop around, you can save, let’s say there’s cash back offers there with a couple of the institutions up to 2%. And the costs associated with it are the valuer, so that’s at 150 quid, and your solicitor’s fees, typically about 800 to 900 Euros.

– Okay, so, for less than 1000 Euros–

– Yes.

– You can save 1000 to 1500 Euros–

– Yes, your typical saving that you would see in the market would be 1/2 a percent. And, again, if you owe 250,000, 1/2 a percent is basically 100 Euros a month.

– Okay.

– Over the term and that’s, with a reducing balance, 20-year term, that’s roughly about 17,000, 18,000 Euros that you’ve saved just by picking up the phone, calling another bank, and saying would you like my business.

– Okay, and is your current provider likely to be providing you the best rate possible?

– No.

– Ouch, Robert, so mortgages definitely worth looking at.

– Absolutely, yes.

– The mortgage is for life.

– Yes

– But are for 20 or 30 years but your existing provider.

– Not with the provider. Shop around.

– Need not be, shop around. Again, it sounds like just pick up the phone.

– And, again, if you can put another 100, 150 Euros a month into your pocket, why wouldn’t you?

– Okay, super. Robert’s from Rockwell, thank you so much for your advice.

– You’re welcome.

– This time of year, it sounds like it’s another expense that’s perhaps just worth looking at or figuring out what we all need to do to shake it up. Robert, thank you so much.

– Very welcome.

– Thanks for your time. Justin from talentforce. Have a look at our flexible, professional jobs on talentforce.ie or give us a call, 019081514. Thanks for your time, take care, bye bye.