Can BOI enforce 2% clawback on pre-existing mortgages?

At this stage, it might be in your interests to ask your solicitor to issue a formal reminder/warning to BoI (assuming 10 working days have now passed)

Thanks for that information Sarenco - I didn't get a chance to follow up on it today but I'll get my solicitor back onto BOI next week.
 
My solicitor got my redemption figure last week and there was no mention of the 2% cashback.
 
My own case is still proceeding but there are now enough facts in to answer this thread's initial query and provide guidance for others.

Like Fita I also received my redemption letter - probably right edge of at the 10 day limit promised for the issuing of these - but it was worth the wait as it gave the answer I was hoping for with no clawback being applied. The redemption letter addressed the clawback matter explicitly with a "Repayment of Cash Contribution" line, but with the number on this line being "€0.00". So that was great news, and exactly what I was hoping for.

On my solicitor's advice I also got in touch with BOI and asked them the direct question on the clawback and they confirmed that although the right to a clawback is in my contract that policy from management currently is not to exercise it and that they haven't exercised it on any mortgage account to date. Which tallies with the answers Fita got. The "€0.00" figure for "Repayment of Cash Contribution" in the redemption letter reflects that situation. On the basis of that explanation and the redemption letters I think people are good to go to proceed with switching without fear of a clawback.
 
Some other observations...

As attested to by posters on other threads switching is a painful process and inevitably takes much longer than you would expect at the outset - valuations, bank meetings, loan approvals, redemption letters, queries to banks and solicitors and the gaps between each all add up. Being realistic 6 months plus is what you are looking at. It's all well and good saying it shouldn't take that long, but it will. For a 0.1% or 0.2% saving in my view the hassle probably isn't worth it. There are costs too (legal fees, valuation, your time) though many banks offer switchers cash toward legal fees and/or free valuations.

As Fita also discovered BOI will drop their SVR for existing customers, if you ask, especially if you credibly look like you're about to switch. Even still though they won't match competitor banks on SVRs. But its an easy way to try seek some reduction without the hassle of switching, if it doesn't suit you go through that process right now. Given my own experience and reading other threads on AAM I'd say up to about 0.3-0.5% under advertised BOI rates seems to be on the table. Presumably people's mileage will vary, depending on how credible your switch threat is, and lower LTVs will probably get a better hearing, but it's worth a try.

Good luck to anyone looking to switch.
 
Finally through the switching process. Closing statements finally arrived and no clawback applied. Boi seem to be simply not pursuing it. There's a box on the redemption letter to include but it was zero. It's a slow process but fairly easy and very worthwhile.
 
Back
Top