EBS now offering 2% cash back - with no clawback!

Brendan Burgess

Brendan Burgess

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This is great for new borrowers who should take the 2% and then immediately switch to AIB for the much lower rates.

"A spokeswoman said: "Customers do not have to stay with EBS in order to avoid a clawback on the 2pc. The bank is confident customers will stay to avail of its competitive rates."

The cash-back deal applies to first-time buyers and those moving, whether they are taking out a fixed or variable rate."

Brendan
 
Yes grab the money and move. Why would anyone stay with EBS. They don't pass on interest rate cuts. Like their other half. AIB. And are unfare to long term customers with good. LTV
 
Here is the press release


EBS announces 2% back in cash for new mortgage customers

· €5,000 back in cash on a €250,000 mortgage


EBS today (Thursday 23rd June) announced it is offering 2% back in cash to customers who draw down new mortgages between now and 31st October 2016.

EBS customers will receive €2,000 back in cash for every €100,000 in new mortgage borrowing drawn down. For example, a typical customer borrowing €200,000 will receive €4,000; a customer borrowing €300,000 will receive €6,000 and a customer borrowing €400,000 will get €8,000 back in cash.

EBS Chief Executive Des Fitzgerald said: “Our research has found that some customers, especially first-time buyers, have a strong appetite for cash offers, but still want to avail of very competitive mortgage interest rates.This new offer, coupled with EBS’s low mortgage interest rates, is designed to meet their needs. We are now offering our customers 2% of their mortgage back in cash, a substantial sum that would typically cover home purchase costs such as stamp duty, legal fees and valuation.’’

The offer of 2% back in cash is available to customers taking out fixed or variable mortgages on Private Dwelling Houses including first-time buyers and customers moving to a new home.

Notes to Editors:

1. The EBS Private Dwelling House Variable Mortgage Rates are summarised below:

upload_2016-6-23_11-13-20.png
 
It applies to EBS only and not to customers introduced to Haven via brokers.

They will be making an announcement about Haven's rates "shortly".

I don't think that the mortgage brokers will be best pleased.

Brendan
 
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This would be a particularly good deal for (what would otherwise be) a cash buyer. Simply take out the biggest mortgage EBS will give you (to maximise the cash back offer) and redeem the loan as soon as you receive the cash.

Is it any wonder our banks went bust?
 
quick calculation - someone on 250k over 25 years on 3.3% = 1225. Same at 3.1% would be 1198 a month.

I am guessing they are betting that customers will not switch for 27 euro a month or 324 euro a year - as it simply is not worth their hassle

Given the switching market is so low, I think its a pretty good gamble for the few that do.

Of course, I can imagine they may be more careful with higher value mortgages to reduce the risk !
 
gnf_ireland said:
I am guessing they are betting that customers will not switch for 27 euro a month or 324 euro a year - as it simply is not worth their hassle
Click to expand...

But will EBS pass on interest rate cuts to existing customers if rates fall? If they don't, then the incentive to move will increase.

Brendan
 
Brendan Burgess said:
But will EBS pass on interest rate cuts to existing customers if rates fall? If they don't, then the incentive to move will increase.
Click to expand...
It will be interesting if they don't. It would make them only the second bank not to (as you know I think BoI are slightly different and don't let you change products easily). It will be interesting to hear what their justification for it
 
Sarenco said:
This would be a particularly good deal for (what would otherwise be) a cash buyer. Simply take out the biggest mortgage EBS will give you (to maximise the cash back offer) and redeem the loan as soon as you receive the cash.
Click to expand...
I like the thinking but they aren't going to lend to anyone who doesn't need the money. You'd have to hide the money . . and that might prove problematic.
 
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