AIB refused me the lower LTV rate, so switched to EBS and back again to AIB.. €7k cash back

Sean Og said:

Username123 why don't you switch to BOI for 2% cash back and then to EBS for 2% cash back if you haven't previously availed of it before. Also try KBC for their €3000 cash back offer. If i was you i would apply to all 3 at the same time. Tell them you have been with AIB for 12 months and now want to change. Get all 3 offers in first before you make the first switch. The mortgage offer is valid for 6 months. Once you get the first cash back from BOI (about 10 days) then simply switch to EBS and do the same and then KBC, you have mentioned Haven so you should also try them. People thinks it's mad and impossible but if you get all the necessary paperwork together just make 4 copies of everything and send in your application. If your credit history is perfect then you will be fine. Get a variable rate each time as it speeds up the process when you are closing one mortgage and opening up another one. The biggest problem now is getting a solicitor on board. Some seem to be a bit reluctant but they shouldn't be. All you are doing is following Government and Central Bank advice by switching to get a better deal. Remember less than 1% of people switch so we are in the minority and the Banks don't really care.

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There’s switching and then there’s extreme switching!! I like it!

Thanks Tom1ie, but we must be careful and have it well planned before we move, PTSB require you to be 24 months with your current lender so that is why i'd advise getting all the offers in first. All the banks will presume that you are simply switching to them and no one else so they are happy to give you a full mortgage offer. I am afraid that if a bank see your cashback in your current account they might suspect something and refuse you an offer. I remember Brendan said on here somewhere that no bank is required to lend you money even if you meet all the criteria, if they think you are going to switch after you get the cash back they will not give you a mortgage. I maybe wrong with this so if anyone has any thoughts please share.

I already claimed 2% cashback from EBS on the very first mortgage, so I cant get that again. BOI Variable rate is insane, so dont want to risk switching to that for fear anything happened and I was stuck on it.

All of the above sounds a little extreme to me. If switching, it would most likely be to KBC, get the 3K, then onto Ulster for 2.3% rate.

Can anyone explain how overpaying actually works on fixed rate, or if it makes any sense (ignoring cashback) for my considering I am overpaying by alot?

username123 said:

I already claimed 2% cashback from EBS on the very first mortgage, so I cant get that again. BOI Variable rate is insane, so dont want to risk switching to that for fear anything happened and I was stuck on it.

All of the above sounds a little extreme to me. If switching, it would most likely be to KBC, get the 3K, then onto Ulster for 2.3% rate.

Can anyone explain how overpaying actually works on fixed rate, or if it makes any sense (ignoring cashback) for my considering I am overpaying by alot?

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Ulster Bank might suit you so as you can overpay 10% of the total mortgage balance every year without incurring any breakage fees.

KBC allow you to overpay 10% of your principal during the fixed period eg 200k mortgage you can overpay 20k in a year if you fix for a year, 20k over two years if you fix for two. UB allows overpayment of 10% of the principal each year .I would get it in writing though !

you have a mortgage of 200k plus so at least €4000 cash back with BOI. If you apply to UB and KBC and BOI now at the same time you will get the 3 offers through and then pick them off one by one starting with BOI and finishing with UB. Nothing can go wrong .

Sean Og said:

Nothing can go wrong .

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It can.

Cash backs might be stopped making the switch expensive.

The borrower might have a change in their employment record or credit history.

The lender might just stop taking switchers with a history of switching.

Brendan

Brendan Burgess said:

It can.

Cash backs might be stopped making the switch expensive.

The borrower might have a change in their employment record or credit history.

The lender might just stop taking switchers with a history of switching.


Brendan

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Would the banks not be opening themselves up for trouble from competition authority? People switch car/home insurance annually without penalty?

Brendan Burgess said:

Cash backs might be stopped making the switch expensive.

The borrower might have a change in their employment record or credit history.

The lender might just stop taking switchers with a history of switching.

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1st point: No sign of banks to stop cashbacks anytime soon and as long as the cash back offer is in place when you line your three ducks (3 bank offers)up then the banks simply cant renege on this.

2nd point: That's largely within the borrowers control so isn't really a risk.

3rd: as someone pointed out above. The banks cannot do this from a competition perspective. there would be outrage if they did.

As long as one has got three (or whatever number of) offers approved by the banks and they draw down and redeem quickly and within the 6 month offer period then its simple and lucrative!

Sean Og said:

you have a mortgage of 200k plus so at least €4000 cash back with BOI. If you apply to UB and KBC and BOI now at the same time you will get the 3 offers through and then pick them off one by one starting with BOI and finishing with UB. Nothing can go wrong .

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Ok Sean og you have me interested. Let’s tease this out. I’ve done the aib, ebs, aib route, so that rules out getting the ebs cashback again.
That leaves:

(1) b.o.i: 2% cashback with boi, but they require me to be with my previous lender 12 months, if you include my moratorium it’ll be 12 months in Jan (when I had planned to move to ub anyway)
(2) ptsb: 2% cashback with ptsb, not sure what the requirements with previous lender are here, I think I read 24 months on a thread here, can anyone confirm?
(3) k.b.c: €3000 from kbc, no requirement for length of time with previous lender.
(4) u.b: €1500 from ub, 6 month requirement to be with previous lender.
(5) haven: €2000 from haven, not sure of the requirements for length of time with previous lender.
(6) e.b.s: I’ve already gotten cashback so they’ll hardly go for that again.
(7) a.i.b: already switched from and to, so if I go again I may not get back, which is a worry as they have the lowest variable and have a relatively good track record with customers regarding passing on rate reductions.

So knowing all this would it be possible to apply for 1,3,4,5 drawdown and switch between all and end up on option 4 locked into the 2 year rate at 2.3%?
I got my ebs 2% cashback around the time my first payement came out, so if I went to boi in Jan, paid mortgage end of Jan got cashback, switched to kbc in feb, paid feb mortgage, received 3k @ end of feb, moved to haven in March, paid mortgage at end of March, received 2k, switched to ub in April, paid mortgage at end of April, received 1.5k.
This is very optimistic, but if the offer of drawdown is received from all the above banks in January, I have 6 months to draw down, that gives me until July.
Potentially that’s 5200+3000+2000+1500= 11700.
Surely not........

Yes Tom1ie you are correct. All them options are open to you but you might have to check PTSB to see will they accept you after 12 months with your current mortgage provider. They might require 24 months. Other wise you are good to go. If PTSB accept you , apply for PTSB, BOI, KBC, HAVEN, UB all at the same time and once the offers come through you can start switching. Nothing stopping you but just be careful that you have everything correct before you move. You don't want a bank coming back to you looking for bank statements and the statements showing a new lender or cash back in your account. As someone else has said the banks can't do anything about it but PTSB and BOI require being with your current lender 12 months so you need to apply at the same time to overcome this obstacle.

Just confirmed with PTSB that they require you to be 24 months with the previous Lender. I think BOI is 12. I got around this by applying to them both at the same time so they both seen that my mortgage was with EBS for 7 years so both gave me full offers. I switched to PTSB first and once i had cash back in my account i moved to BOI and then once cash back in my account back to EBS for their cash back. There was no cash back offers when i took out the original mortgage back in 2011.