How soon can I switch after cashback?

If you fix it should work out better to fix for as short a term as possible to reduce risk of a high break fee.

No need to let the bank know before you move away - your solicitor will request a redemption figure from them and redeem the mortgage when the next one is drawn.

As @skrooge says, your life assurance needs to match up to the balance / term.

Ok, possible break fees.
Say you switch after 3 months with BoI.
Difference between variable and fixed is 1.5%

1.5/12*3 = .375% is what you'll have saved in 3 months.

So, you need the break fee to be less than 0.375% of your mortgage to be worthwhile.

You'll have 9 months left, so 0.375%/9*12=0.5% annualised

So the interbank rate would need to drop by 0.5% before the break fee will cost you more than you've saved.

This really won't happen.

skrooge said:

Get your home insurance and mortgage insurance independent of your mortgage provider. You don't need to change them unless you're rebuild cost (home insurance) or your mortgage terms (mortgage protection) change during the switch. My house insurance didn't change but as I extended my mortgage term I did bedn to get a new life policy. If you keep the term the same you just need to add the new bank to the pictures. You're also being very nice in letting the bank know you're moving. I didn't bother I hoped they would figure it out from the zero balance on the mortgage account. You could also try asking the banks for a list of valuers and see if there are any common names. Again may save time effort and money.

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Do I not need to do this? Bit risky if I don't, as I wouldn't know what penalty fee they'd be applying to me for leaving early.

RedOnion said:

As @skrooge says, your life assurance needs to match up to the balance / term.

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How exact is this? Assuming when I switch to BOI, they'll round down and give me a 33 year mortgage, rather than round up to 34 years. Do I need to tell my life insurance to change the term from ~33 years and 8 months to 33 years?

Re life insurance, if you're rounding down term you'll be fine. It'd only be increasing term that'd be an issue.

Black_Knight said:

Bit risky if I don't, as I wouldn't know what penalty fee they'd be applying to me for leaving early

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It'll be part of the redemption figure they give your solicitor. The break fees are usually only valid for a few days, depending on the lender.

You've a choice, break yourself, and switch to variable, or let the redemption take care of it.

RedOnion said:

Ok, possible break fees.
Say you switch after 3 months with BoI.
Difference between variable and fixed is 1.5%

1.5/12*3 = .375% is what you'll have saved in 3 months.

So, you need the break fee to be less than 0.375% of your mortgage to be worthwhile.

You'll have 9 months left, so 0.375%/9*12=0.5% annualised

So the interbank rate would need to drop by 0.5% before the break fee will cost you more than you've saved.

This really won't happen.

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So he should go with variable and not fixed???

cliqueentour said:

So he should go with variable and not fixed???

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No, sorry - typed on my phone so I might not have explained it.

He should fix for 1 year, as the interest saving over 3 months outweighs any possible break fee. It's theoretical, but Interbank rates would need to drop by more than 0.5% from their current rate to result in a larger break fee.

I presume if you start applying to other banks, after only switching 3 months ago, they'll decline your mortgage query?
Its unclear from posts above:
1. Do you or do you not contact bank to find out the break fee?
2. If you don't contact bank, the break fee is included in redemption figure.
3. How do you know what amount to apply for with alternative providers, if you don't know redemption figure?
e.g mortgage switched 25th May 2018, €300,000, BOI fixed 1 yr 3%

August 2018 (say 3 instalments in) you decide to start applying to switch. How do you know what figure to give new banks?

Number 3: I give my own estimate. It's always more drawndown than is required for redemption so the solicitor refunds. Then because I've switched to variable, I overpay by this amount. My next switch will be fixed but with KBC so I can overpay with that too.

renter45 said:

3. How do you know what amount to apply for with alternative providers, if you don't know redemption figure?
e.g mortgage switched 25th May 2018, €300,000, BOI fixed 1 yr 3%

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You don't have to draw down the full amount you've applied for. So apply for what you think it is, and firm up amounts when you get closer. So long as you don't need more than you've applied for it should be fine.

Ok I’m still a while away from buying myself due to moving back from Australia at the end of last year and getting married this year.

However all this seems like a no brainer to take the cashback on offer. It would seem currently a PTSB-EBS-BOI-UB switching route would be the way to go about it picking up 6% cashback before heading to Ulster for their low fixed rate.

A couple of questions pop into my head. As it would be a new mortgage would it be best to get approval with one of PTSB/BOI/EBS first, drawdown and then get approval to switch from the other 3 and move to one immediately, then the next after the cashback comes through then repeat to UB?

I’m guessing doing this one at a time would raise some flags with the banks.

Also are there any restrictions on who can apply for the cashback offers at the various banks as I’ve heard of PTSB requiring you to be with your current lender for 24 months or something like that.