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

Edward33 said:
I just got my first mortgagee with PTSB a few months ago.
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Yes, you should be moving immediately.

ptsb exploits its existing customers.

In fact, I would go so far as recommending to those who plan multiple switches to skip ptsb in case they get stuck.

Brendan
 
Hi all,

I am possibly going to do a triple switch with a new mortgage.

A couple of quick questions.

To be clear on the steps, are they the below?
(1) Get letter of offer from the 4 banks. The banks are only mentioning approval in principal to me at the moment.
(2) Do the drawdown with the first bank. I saw one post that said not to drawdown but surely you have to do this with the first bank?
(3) Quickly switch between the other 3 banks.

Will any of the banks get suspicious when it suddenly changes from "new mortgage" to switcher?

Regarding a solicitor to use, I know a number of people reached deals with different solicitors. Is anyone willing to post or PM a recommendation of a particular solicitor?

Thanks.
 
Yes, get mortgage approval from 4 banks on Day 1.
Draw down the mortgage from the first one and collect your cash back.
Switch immediately to Bank 2
etc.

Make sure not to fix the rate with any of them.

My worry at the moment is that you might get stuck with the wrong lender.

ptsb is the worst for the way in which they treat their existing customers. So I would probably not include ptsb in the list.

If you do go for ptsb then, make sure to go to them first.

So my order would be ptsb, BoI, EBS and finally Ulster Bank or KBC.

Brendan
 
CiaranT said:
(2) Do the drawdown with the first bank. I saw one post that said not to drawdown but surely you have to do this with the first bank?
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I don't know what that means. You can't get the cash back without drawing down the mortgage.

Brendan
 
Thanks Brendan.

So "letter of offer" is needed from the 4 banks?

Any there is no issues with telling the banks that it is a new mortgage and it suddenly changes into a switcher?

I don't know what that means. You can't get the cash back without drawing down the mortgage.
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Sorry, I don't know what it means either!! I had read another post from another user saying "do not drawdown". Perhaps, they just meant not to drawdown until you have the 4 offers in place.
 
CiaranT said:
So "letter of offer" is needed from the 4 banks?
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Yes, that is the whole point of the scheme. You get the 4 offers simultaneously.

CiaranT said:
Any there is no issues with telling the banks that it is a new mortgage and it suddenly changes into a switcher?
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Apparently not. I think that some people have said that solicitors might not be happy with this, but many people have been able to do the multiple switching.

Brendan
 


I've looked through the previous threads and can't find anyone who has completed these switched with a New mortgage rather than switching from an established mortgage. Have you had any luck Ciaran with setting up the switches with a new mortgage?
 
smndly said:
I've looked through the previous threads and can't find anyone who has completed these switched with a New mortgage rather than switching from an established mortgage. Have you had any luck Ciaran with setting up the switches with a new mortgage?
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I have not fully tried yet. Still trying to get approval from some of the banks, approval is taking ages with some of the banks.

I am beginning to think that doing a normal drawdown at the start and then a tripple switch at a later date might be a more managable approach.
 

I think this is what I'll look at doing too. While it seems that it's possible to do the switching with a new mortgage, I haven't come across anyone who has actually done it. I think the risk of drawing down an expensive mortgage first and getting stuck with it is too high.
 
Do any of the Banks offer an online switching process? It seems to be all on paper or over the phone.
 
Ulster have an online application, document upload etc. You need to be set up by one of their people but you can do that by email also.
 
Just after switching to EBS, how long does it take for the cash back to arrive? The broker said 7 weeks.
 
pclive said:
Just after switching to EBS, how long does it take for the cash back to arrive? The broker said 7 weeks.
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We are currently switching to AIB and the money will be lodged to your account within 2 months. Would say that's fairly standard so would think 7 weeks would be correct
 
Property value €800k
Remaining loan €328k
Loan to value 41%



Current provider is EBS have letter of offer from BOI with a 5 year fixed at 3% with cash back of €6k within 45 days. Obviously I need to ask them to offer variable rate if I’m going to try and get additional offer letters to try to complete multiple switches!
What is the most attractive longer fixed terms out there and where do people think rates might be going with covid and potential new entrants to the market?
 
Ulster have the best 5y fixed rate at 2.2%. BOI have 2.3% 5y fixed rate - but it depends on BER of property and loan amount (think it must be greater than 400k).
KBC have 3y fixed at 2.3%. Rates are only going one way IMO - lower. The banks in Ireland still have some of the highest mortgage rates in EU - most other banks in other EU countries have rates below 2%, and some below 1%! We all have the same central bank - the ECB.
However, if you are comfortable with the mortgage payments with a fixed rate and want certainty, by all means go with fixed. 5y fixed at 2.2% is probably the lowest ever in this country!
 
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I am in exactly the same position as you. Have gone sale agreed on a new build house, and currently have approval in principle from 4 banks. I’m not a FTB. In order to get “letter of offer”, each bank requires a separate valuation report, which cost about €150 each. I don’t want to pay this unless guaranteed of at least one switch!
All of the approvals I have are based on “mover” mortgages - but as soon as I draw down the first one I become a “switcher”, and I am afraid the other banks will not let me draw down on those mortgages at that stage.
Have you gone any further along in the process ?
Like you, I can’t find any use cases on this forum who have successfully completed what we are trying to do - there’s a first time for everything I guess
 
Hi all, thanks in advance for advice on this.

I've just come off a fixed rate with one of the three banks that have 2% CB offers. I'd love to include them in our switching plan. I.e., go from CurrentBank —> Bank A —> Bank B —> CurrentBank —> FinalBank (which has the best rates but no CB offer, probably Ulster, maybe AvantCard if they show up soon enough).

But I can't apply for my switch to CurrentBank until I've moved away from them. So I could be stuck with Bank B for a while before new approval comes from from CurrentBank.

Am I better off leaving CurrentBank out of the plan entirely? Each switch is worth nearly €10k so it's tempting to find a way to keep them in. I guess the risk is that FinalBank might rescind our approval and leave me stuck with Bank B. But I'm not sure if the FinalBank can do this, or why they would, if we're moving to a fixed with them?

A more general way to frame the question: why do the switches (like originally described by @Sean Og) have to be done in quick succession? Why can't borrowers move every few months? That's much less efficient in terms of paperwork but is there another reason? Would the banks see recent switches on the credit register and not approve those applications?
 
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I am wondering if you had any luck?

I currently have AIP with EBS , AIB, KBC AND UB. I am flirting with the idea of switching on the first drawdown but like yourself haven't found any info on somebody doing this with FTB mortgage. The process is already stressful enough as is.

The other option is to take one offer and fix for 1/2 yrs and hope the switcher offers are still available when fix term is up.
 
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