Key Post I got cash back three times in 6 months

username123

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IMO they always say 40 days to cover themselves. My experience was that they were very quick, which was last month......
 

Itchy

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I am now on move 2 of my 4 bank mortgage switch plan within 6 months. Move 2 is with PTSB. I had to sign up for a 5 year fixed rate for them to accept me.
Can you elaborate? They would only offer you the lower rate 5 year fix rather than the higher rate 1 year fix?
 

lotus17

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Can you elaborate? They would only offer you the lower rate 5 year fix rather than the higher rate 1 year fix?
Because I had switched my mortgage 18 months previously, PTSB would only take me if I signed up for the 5yr fixed.
 

Coldwarrior

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I am now on move 2 of my 4 bank mortgage switch plan within 6 months. Move 2 is with PTSB. I had to sign up for a 5 year fixed rate for them to accept me. All other banks agreed to take me on a variable rate. I will be moving on from PTSB as soon as the cash back hits my account. I obviously don't want to incur a break fee. Is there any risk of the inter-bank rates changing over the next few weeks? If they don't, as I understand it, I wont incur a break fee. If they do, it would hamper my cashback harvesting plan. Any advice? PTSB have said it may take up to 40 working days or 8 weeks to receive the cashback. Any advice?
You could move to their variable now before you switch again to reduce the risk of big changes in interbank rates and therefore break fee.
 

username123

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Because I had switched my mortgage 18 months previously, PTSB would only take me if I signed up for the 5yr fixed.
Again, not my experience. I went directly onto their variable rate having been with AIB for 14 months. It really seems to depend on who you speak with........
 

Sanparom

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Hi, great thread. I have just under 160k left on our mortgage on house which is currently worth 260k - 280k (I've yet to have it valued, but judging by local market sales). Would there be any point in me going through this process when taking solicitors' fees etc into account?
 

username123

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Hi, great thread. I have just under 160k left on our mortgage on house which is currently worth 260k - 280k (I've yet to have it valued, but judging by local market sales). Would there be any point in me going through this process when taking solicitors' fees etc into account?
Fairly easy to calculate.............2% of E160K is E3200. Hence, if you did two switches of that followed by finishing at Ulster (that seems to be most people's end game), you would have (2 * 3200) + 1500 = E7900 gross cashback. Depending on how much 3 moves are charged by your solicitor, your net profit could be around E5000 I would estimate.
 

Itchy

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You could move to their variable now before you switch again to reduce the risk of big changes in interbank rates and therefore break fee.
Interesting but PTSBs policy is to move customers on to their existing customer rates, which is 4.5% variable. That would erode your cashback gain very quickly.

Given that the break fee is calculated between the rates available on the money market at the time of drawdown and repayment, the question is if one is switching (from an initial fixed rate) within, say, 6 months, then which would be the smallest spread, 1y vs. 6mths, 3yr vs. 2.5yr or 5yr vs. 4.5 yr?
 

Sean Og

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I am now on move 2 of my 4 bank mortgage switch plan within 6 months. Move 2 is with PTSB. I had to sign up for a 5 year fixed rate for them to accept me. All other banks agreed to take me on a variable rate. I will be moving on from PTSB as soon as the cash back hits my account. I obviously don't want to incur a break fee. Is there any risk of the inter-bank rates changing over the next few weeks? If they don't, as I understand it, I wont incur a break fee. If they do, it would hamper my cashback harvesting plan. Any advice? PTSB have said it may take up to 40 working days or 8 weeks to receive the cashback. Any advice?
Switch ASAP don't wait for the cash back to hit your account. Once your mortgage has been drawn down you are legally entitled to the cash back even if you move the next day. Don't wait moved again. Great to see you following our advice. Well done.
 

lotus17

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Switch ASAP don't wait for the cash back to hit your account. Once your mortgage has been drawn down you are legally entitled to the cash back even if you move the next day. Don't wait moved again. Great to see you following our advice. Well done.
Can we be absolutely sure of this? Does the EU mortgage directive specifically protect me here and if so where does it say it? If so, I’m happy to move immediately to avoid any breakage fees. I don’t want to risk the cashback after all this work though!

Has anyone here moved before the cashback hit their account and did they have any bother getting the cashback afterwards?
 
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renter45

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Can we be absolutely sure of this? Does the EU mortgage directive specifically protect me here and if so where does it say it? If so, I’m happy to move immediately to avoid any breakage fees. I don’t want to risk the cashback after all this work though!

Has anyone here moved before the cashback hit their account and did they have any bother getting the cashback afterwards?
Are you sure theres no breakage fee?? I fixed with UB on 2 yr fixed and in the documents they said the break fee was over €3k
 

username123

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As of yesterday, I have successfully completed the 3 switches from AIB (variable 2.95%) -> BOI (variable 3.9%) -> PTSB (variable 3.4%) -> Ulster(4 year fixed 2.6%). All went very smoothly, exactly as @Sean Og indicated. I waited until I got the cashback before I moved each time, out of the above fear! I didnt make any payments to BOI, and I made one payment to PTSB. There was never a question asked about anything during the switches. In total, this took just over 5 months. The slowest part was getting approval from Ulster which took 2 months alone.

For me, the cashback from both BOI and PTSB was received within about 7 days. I am now just waiting on the final leg, so the Ulster E1500 cashback. Once that is received, my total gross cashback will be E10, 700 (on these 3 moves), which is about E6500 after solicitor and valuations. We were also with EBS and AIB previous to this so in total since taking out our first mortgage 2 years ago, we have received E18, 300 gross cashback.

Many thanks to @Sean Og for highlighting this and to @Brendan Burgess for providing the platform :)
 

renter45

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As of yesterday, I have successfully completed the 3 switches from AIB (variable 2.95%) -> BOI (variable 3.9%) -> PTSB (variable 3.4%) -> Ulster(4 year fixed 2.6%). All went very smoothly, exactly as @Sean Og indicated. I waited until I got the cashback before I moved each time, out of the above fear! I didnt make any payments to BOI, and I made one payment to PTSB. There was never a question asked about anything during the switches. In total, this took just over 5 months. The slowest part was getting approval from Ulster which took 2 months alone.

For me, the cashback from both BOI and PTSB was received within about 7 days. I am now just waiting on the final leg, so the Ulster E1500 cashback. Once that is received, my total gross cashback will be E10, 700 (on these 3 moves), which is about E6500 after solicitor and valuations. We were also with EBS and AIB previous to this so in total since taking out our first mortgage 2 years ago, we have received E18, 300 gross cashback.

Many thanks to @Sean Og for highlighting this and to @Brendan Burgess for providing the platform :)
I can see Charlie Weston writing a little piece on this!
 

lotus17

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Switch ASAP don't wait for the cash back to hit your account. Once your mortgage has been drawn down you are legally entitled to the cash back even if you move the next day. Don't wait moved again. Great to see you following our advice. Well done.
Am I better to
A) break out of the fixed rate today and go onto their high interest variable, wait for the cash back to hit my a/c, then move immediately? or
B) don’t wait for cashback to come and move immediately.
Can anyone confirm for certain, I will receive the cashback if I move before it arrives?
 

username123

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I think its been confirmed multiple times already on this thread, as in the part you just quoted. @RedOnion also confirmed this earlier in the thread.
 

Coldwarrior

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Interesting but PTSBs policy is to move customers on to their existing customer rates, which is 4.5% variable. That would erode your cashback gain very quickly.
I took it that lotus17 was ready to switch again immediately after the cash back lands, so likely less than 1 month or 2 max at 4.5%, so the extra interest shouldn't come near the value of cashback, it should be at most a few hundred quid. I guess its the certainty of an easily calculable extra interest payment versus the uncertainty of a potentially volatile breakage fee, depends on your risk appetite. Of course as has been pointed out by others, ideally he/she should just switch again straight away and not wait for the cash back.
 

jim

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I can confirm i received cashback having jumped ship a few days after drawdown. Iv just completed the 3 switches in under the 6 months. Ebs to ptsb (3500) to boi (3500) to aib (2000).
Gross total 9000. Very easy cash imo and a huge thanks to sean og for the sound advice!
 

Sean Og

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I can confirm i received cashback having jumped ship a few days after drawdown. Iv just completed the 3 switches in under the 6 months. Ebs to ptsb (3500) to boi (3500) to aib (2000).
Gross total 9000. Very easy cash imo and a huge thanks to sean og for the sound advice!
Well done Jim , i can't understand why more aren't doing the same.
 

Sean Og

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I can confirm i received cashback having jumped ship a few days after drawdown. Iv just completed the 3 switches in under the 6 months. Ebs to ptsb (3500) to boi (3500) to aib (2000).
Gross total 9000. Very easy cash imo and a huge thanks to sean og for the sound advice!
Have you received a cash back from EBS yet? I was with them when i started my crusade of switching. I was on a high fixed rate of 5.5 so i explained to my local branch manager what i planned to do and would EBS take me back on a new lower rate after i switched to PTSB and BOI. They said yes and i got my cashback from them no bother.
 
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