Bank of Ireland, free redemption and Cash-back?

jumeriah

We had the same letter. The problem for us is that we have negative equity, an interest only mortgage and so we could not put down any deposit to go with another lender. BOI have said we now have to move our mortgage to The Mortgage Works (part of Nationwide) where the interest rate will be around 5% (very high).. We feel like handing the keys back and telling them to keep the house.

Thrugelmir

jumeriah wrote: »

We had the same letter. The problem for us is that we have negative equity, an interest only mortgage and so we could not put down any deposit to go with another lender. BOI have said we now have to move our mortgage to The Mortgage Works (part of Nationwide) where the interest rate will be around 5% (very high).. We feel like handing the keys back and telling them to keep the house.

So why not start repaying the capital back?

If you rent a property you'll have nothing to show for your money in 25 years time.

jaysb

Thrugelmir wrote: »

So why not start repaying the capital back?

If you rent a property you'll have nothing to show for your money in 25 years time.

I had a B&W, then BOI 2.99% SVR, now TMW mortgage but transfer to another lender next week.

At present my mortgage with TMW is still 2.99%, not sure I have seen TMW confirm any specific increase, as I thought they were just showing differences between the SVRs at BOI and TMW.

Even TMW 4.75% is low compared to some historic interest rate figures, so you may need to seek advice. If you can bring the capital down then as suggested, you're only going to be in a better situation in the medium/long term. All the best !

UrWntr

Interesting.

I took a BOI mortgage out via the Post Office very recently.

ghall54

Only just found this thread, so I'll post in here rather than continue my own!

We received a letter from BoI yesterday, offering us £1000 cashback, and a no-fee move to a First Direct mortgage - 2 year tracker, repayment, fixed at 1.49% above base rate (so 1.99% at the moment). Just seems too good to be true This is on a £125,000 mortgage, £148,500 value property. We're currently on the BoI SVR of 2.99%.

For anyone who has taken up a similar offer recently, can you confirm there really aren't any hidden fees in this? No legal fees or anything they neglect to tell you on the very appealing letter??

kingstreet

AFAIK they are still charging the £200-odd discharge fee for closing the account. At least they were for those who were transferred to TMW back end of last year.

ghall54

kingstreet wrote: »

AFAIK they are still charging the £200-odd discharge fee for closing the account. At least they were for those who were transferred to TMW back end of last year.

Ah yes indeed, just spotted that, seems a small price to pay in the grand scheme of things! I was thinking more along the lines of hidden legal costs. On the letter, all it says is:

No standard valuation fees (what about non-standard )
No arrangement or booking fees

So, does that cover everything?

kingstreet

A remortgage to FD is normally fee-free anyway, so I wouldn't expect any costs on the way in. The costs on the way out of BoI we've already covered, so I can't imagine there'll be anything else.

You could have done this yourself. The big difference is the £1,000 cashback BoI is giving to get rid of you.

I can't foresee any other costs. You're the one with the paperwork in front of you though.

ghall54

kingstreet wrote: »

A remortgage to FD is normally fee-free anyway, so I wouldn't expect any costs on the way in. The costs on the way out of BoI we've already covered, so I can't imagine there'll be anything else.

You could have done this yourself. The big difference is the £1,000 cashback BoI is giving to get rid of you.

I can't foresee any other costs. You're the one with the paperwork in front of you though.

Thanks kingstreet, I guess one way to find out for sure is to give FD a ring. Do you think that mortgage they've offered is decent?

kingstreet

The rate is very good for those looking for a tracker product.