Key Post Advice on making the most of switcher offers - what order?

arbitron

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We are with KBC, about to come off a fixed rate of 2.9%

Property value: 410,000
Outstanding loan: 310,000
LTV: ~75%

We're happy with KBC but planning to switch to take advantage of the 2% from EBS, PTSB, and BofI. The plan is to switch to the next bank immediately once we've received the 2%, as others here have done.

I would appreciate advice from anyone else who has done this in quick succession.

Is there a particular order we should do it in? Should we start applying for the next switch as soon as we draw down the 1st one?
 
Interesting question.

I would imagine that the cash back won't last too long.

You don't want to get stuck with ptsb having got their 2% cash back. You will have to switch to another lender and bear the cost yourself.

So maybe BoI and EBS. Or if you think you can do all three, ptsb, BoI and EBS.

Brendan
 
This is the advice i gave someone on the other thread. Someone else on these forum has switched 3 times in 5 months. Anyway here it is, follow my advice closely now.

Get everything in order, wage slips, bank accounts 6 months, salary certs etc. Make 3 copies of everything and then apply to EBS for 2% cashback, apply to PTSB for 2% cashback also and apply to Ulster Bank for their 2.3% rate. They will all process your application at the same time and will all offer you a mortgage everything going well. Your mortgage lasts 6 months.

PTSB gave me my cashback within 10 days of draw down last month. I am already in the process of drawing down my BOI offer which i have. I moved from EBS to PTSB last month so after BOI i am going back to EBS for 2% cash back because i never got it previously.

The bank might call you and say the underwriters have seen that other banks have carried out a credit check on you within the last days/week, just tell them you are shopping around for best deal and looking at all options. I told them that and it was fine. You are doing nothing wrong and your solicitor should have no issues also. You are just playing the system, less than 1% switch mortgages and you are just ahead of the game.
 
By way of updating this thread and also to consider our own position:
We have circa 295k owed, 32 years left and are fixed at 3% with EBS until July 2023. Our breakout fee is circa €2,500.

My current plan would be to avail of cashback from BOI, PTSB, KBC then possibly AIB and ending up fixed with UB. The KBC and AIB switches would only net us €1625 and €625 respectively so may leave them off the cards but free money is free money. I would prefer to apply to each bank separately as opposed to applying to them all at once, just in the off chance that this would be interpreted as misleading them. What are each banks requirements for how long you have your current mortgage?

Any input as to what should influence the order we go in. BOI's variable rate seems to be the highest at 4.5% so I would like to spend as little time as possible with them.

I workout an earning of just shy of €9000 not including any higher monthly repayment amounts while we are in the process and then a monthly saving of €125 when we hopefully end up with UB.

Thoughts appreciated.
 
In relation to what order for switches, I have a quick question. I have my first time mortgage with PTSB last month. This is my first ever service provider. If I go to KBC next on a fixed term rate of 2.3% for 1 year followed by BOI at a rate of around 3%. Is it more difficult to switch to BOI if there rate is higher than KBC? Do I need to justify the switch or is it simple and no questions asked why you are switching if your finances and statements are in order ?

If you do need to justify the switch I would presume the route would be PTSB > BOI > EBS > KBC because KBC has lowest rate. Or maybe this does not matter at all....
 
In relation to what order for switches, I have a quick question. I have my first time mortgage with PTSB last month. This is my first ever service provider. If I go to KBC next on a fixed term rate of 2.3% for 1 year followed by BOI at a rate of around 3%. Is it more difficult to switch to BOI if there rate is higher than KBC? Do I need to justify the switch or is it simple and no questions asked why you are switching if your finances and statements are in order ?

If you do need to justify the switch I would presume the route would be PTSB > BOI > EBS > KBC because KBC has lowest rate. Or maybe this does not matter at all....
Doesn't really matter all you have to say is that the 2% cash back is attractive and you want a nice wee holiday or something.
 
I am looking to get a new mortgage but bank says that I can go variable but will be unable to switch for a few years. Is this normal? Would want to switch quick as rates are high.
 
I am looking to get a new mortgage but bank says that I can go variable but will be unable to switch for a few years. Is this normal? Would want to switch quick as rates are high.
If you go for a variable rate you can switch whenever you want without a penalty. If you go for a fixed rate you will have to pay a penalty if you want to break out before the fixed period is up. Variable rates are higher but just tell the bank that you don't want to fix just yet as you think rates will fall especially now with Covid 19 etc.
 
Yeah Séan, I mentioned that (i'll fix later and keep an eye on variable rates) but they're saying you can switch in a couple of years! I know that i'm not locked in with a variable rate but wonder why this guy is telling me this? Anyway thanks for confirming that as I saw in another post. Brendan Burgess said that your not locked in with a variable so I was a bit confused. Thanks Séan.
 
but they're saying you can switch in a couple of years
Is this for a new mortgage we were talking about before?
Most lenders won't look at letting you switch to them until you've 12 months repayment history. There are some exceptions.
It's the criteria of the bank you're switching to that matters.
 
Hi RedOnion, yes it is. I was told I can switch in a couple of years. Seems like a long time. Are the variable rates high with all of the banks? I know BOI is the highest. Are there different rules if you are switching with an existing mortgage rather than a new mortgage? In otherwords, if you have an existing mortgage (not a new one) and you switch then would the new bank you go with have a different set of rules for an existing mortgage whereby you can switch within a couple of months instead of a few years (as with a new mortgage)?
 
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You could apply to all the banks as a first time buyer and get approval from them all. Then just get your solicitor to switch asap between the banks. The same rules apply , your mortgage approval should be valid for 6 months and if you have 3 or 4 approvals in place then there is nothing stopping you from switching 3 times in 3 weeks. Probably a good bit of paperwork involved as a first time applicant but if you are up for it i'd certainly give it a try. Plenty of cash on the table for the savy switcher.
 
All except AIB, but even they have lower fixed rates now.

@Sean Og I'd imagine it's more difficult to get a solicitor to process a switch on a new mortgage application.
Yes possibly but still well worth a go. You are doing nothing wrong or illegal as i keep reminding people.
 
You could apply to all the banks as a first time buyer and get approval from them all. Then just get your solicitor to switch asap between the banks. The same rules apply , your mortgage approval should be valid for 6 months and if you have 3 or 4 approvals in place then there is nothing stopping you from switching 3 times in 3 weeks. Probably a good bit of paperwork involved as a first time applicant but if you are up for it i'd certainly give it a try. Plenty of cash on the table for the savy switcher.
Hi Séan, it'll be a second buy. I could move/switch my current mortgage around as it's variable? It's trying to choose for the 2nd buy and have the flexibility to switch is what I'm hoping to achieve but there may be barriers. The biggest one is what RedOnion pointed out which is the Solicitor.
 
So fixing with cash back is probably the better option weighing up the above obstacles? Are people fixing for 5 years or the 2/3 year option?
 
I wonder should the order of switching be reviewed in the current market?

My initial view was
ptsb
BoI
EBS
and end up with AIB

However, is there a danger that you might get stuck with ptsb or one of the other bad value lenders?

1) You might lose your job or have a reduction in earnings
2) The lenders may change their criteria
3) Cash back/legal fees reimbursement may be scrapped

Brendan
 
This is my exact concern Brendan. I just got my first mortgagee with PTSB a few months ago. Luckily I have no changes (yet) in circumstances but if either myself or my partner have a reduction in wages or house prices have significant reduction leading to negative equity then these are my two biggest concerns rite now.

Both are much more likely to happen now than I initially expected and for that reason I'm considering revising my position to leave PTSB as soon as I possible can in case I get stuck there on the bad existing customer ratss.

I am hoping to move to KBC next and the decision I'm still trying to make is to fix for longer and forget about my switching plan altogether or continue to take risks and fix for shorter period with a view to switching each year. I guess I'm now thinking the risk is much much higher now than it was 4 months ago.
 
Thanks Brendan. It's difficult to know what to do as Brendan pointed out conditions in the banks could change etc. A lot of uncertainty. Anyone else have any insight into this?
 
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