Key Post I switched 4 times in 6 months

Lads you are looking at this all wrong IMO. BOI, EBS, PTSB are all offering 2% cash back to take out a mortgage with them. They are not allowed to take the cash back from you once you draw down the mortgage. It is no odds to them who you are switching from, they don't specific that you can only switch from bank A, B or C to them. I do agree that it is playing the system that's all it is playing the system and when it comes to the banks i couldn't care less. If they want to offer 2% cash backs i will play the system as long as i can.

I am still waiting on full approval from the 4 banks I hope to switch to.

One bank manager has come back saying the underwriter has come back saying it is bank policy to be with your current lender 2 years before switching. I moved my mortgage 18 months ago. The bank manager suggests he can appeal this decision if I was to agree to fix for 5 years. The mortgage switch to this bank would be worth €5K to me in cashback. My mortgage is €250K. What would the breakage fees be if I switched to them, signed up for the 5 year fixed term, harvested the €5K cashback and then moved on to the next bank, the minute the cashback hits my account? I obviously cant ask the bank to advise on the breakage fee!

I have no interest in staying with this bank long term as they do not have a good record of treating their mortgage customers well. If it is worth switching to them for the 5 year rate, is there any way the bank could delay my move to the next bank? I would be anxious to make it onto Ulster Bank, my 4th move within the 6 month window to avail of their attractive 7 year fixed rate.

After paying solicitor fees & breakfee I can't see you having any of that €5k cashback left.
Also the fact they are trying to lock you into a fixed rate shows they know exactly what tour at imo.

I agree, they probably have an idea what I'm at. I can make my decision on whether it is worth doing (if the bank let it through) once I know what the break fee would be. Another concern is the bank delaying my move to the next bank after I receive the cashback....can they do this?

Absolutely not, once you have drawn down your mortgage you are entitled to call the bank the next day and ask for a redemption figure. With it being a fixed rate it might take a few days but if it was a variable rate you could get your solicitor to send them on the full of the mortgage drawdown plus 7 days interest and tell them to close the mortgage. Job done they have to do it. They also MUST pay you your cash back because it's part of the deal. Not clawback periods etc allowed under law. Plough on my son

lotus17 said:

I agree, they probably have an idea what I'm at. I can make my decision on whether it is worth doing (if the bank let it through) once I know what the break fee would be. Another concern is the bank delaying my move to the next bank after I receive the cashback....can they do this?

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Of course they can, simply by adopting chicanery, just as you are, ie. "he's out of the office today.....she's in meetings all day.....I'll get them to ring you......it's in the post......sorry, accounts promised me those figures today..... we're just processing that now", etc. Suddenly all those days start to add up to weeks.
Remember too, they are not complete fools and if just one, gets a whiff of what you're upto, undertakings may not be accepted and they demand that actual title documents to be surrendered upon draw down, which they are entitled to. This is the way it used to be, vendors, buyers and lenders solicitors sat at the table and closed the sale. This does not totally put the "kywash", if it is only on your first (which is your only mostly above board) switch of your scheme but it certainly would be an unwanted complication and would have a detrimental impact on the 6 month limit.

I suspect, as stated above, that contract breakage plus legal fees may well make a severe indent on your cash back of 5K. But we don't know as yet just how severe.

You hope to do 4 moves within 6 months............the best of luck.

Thanks for your help. The liklihood of a rate drop is very low so I’ll plough on if they offer the money under the 5 year fixed when it’s highly unlinkely there will be a break fee.

Let’s hope they facilitate me breaking out of the fixed rate in a timely fashion when and if I get to that stage and that I can be moved on to the next bank within a few weeks.

lotus17 said:

Let’s hope they facilitate me breaking out of the fixed rate in a timely fashion when and if I get to that stage

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There was an addendum to consumer protection code to facilitate switching. Since 1st January they've had a maximum of 5 working days to provide a redemption figure.

Even without that, MCD requires them to do it 'without delay'.

As always Red Onion is a wealth of valuable knowledge in this field. That new rule since January 1st is just another great reason to switch. Everyone is telling us to switch, central bank, government etc, they are even putting everything in place to make it easier for the comsumer and still people won't do it and other are worried about Sharp practise . Come on lads get switching.

Its playing by the banks own rules. If its chancery then so be it, who cares at the end of the day. Im happy to apply a bit if harmless chancery if i make a handy few bob out of it from the banks. No rules or laws are being broken.

The banks know the vast majority will not bother with this game and so their switcher offers stand and continue to win them lucrative business.

Im happy to be in the small cohort of individuals that are willing to exploit the rules and cash in at the banks expense. You'd be a fool not to. Why would anyone feel any loyalty towards any bank?

Sparkrite the criticisms you raise are pure nonesense.

1. Loyalty in banking dont exist. No such thing as bank refusing to do business just because you legitimately swirched business from them. If they can make money of you they will. Also its possibly discriminatory/unfair practice to blacklist a customer for simply switching their mortgage. Just woudnt happen.

2. So what if you get locked into a slightly higher rate... say 0.5% higher than alternative...and say for 1 yr - you can switch or apply for a better rate eventually...cashback received will far outweigh the additional interest. Its hardly a real criticism or a reason to not persue this.

3. Id love to know what holes they picked. If they were proper issues why woukdnt they be acting on them professionally in their jobs in the banks. Why would they not be stopping this sharp deceitful practice, whistleblowing the crap out of this? There might be pitfalls but nothing illegal or overly difficult. I suspect bankers are annoyed at idea of free money being given out.

4. And it is easy so you shoukd do it yourself. Its a bit time consuming but it aint rocket science and it is worth it.

Article on the front page of the Times business section today regarding EBS changing the rules to be with current lender for 12 mths it quoted someone on this forum getting 18k from multi switches

i'm famous

Has our cover been blown by this article in the paper today. It names this website so will every bank in the country now be looking at this site trying to close all the loopholes available to the savvy switcher? I am a bit annoyed tbh. Alright to mention someone getting €18k cash back but naming the site for everyone to see was a bit much.

Yes exactly not for publication on the front page of the Irish Times Business section. We had found loopholes in the switching process which were very profitable to members who were willing to go through the process. It takes time and patience and good luck to anyone who did it.

Switch 1 completed, awaiting cashback from BOI. Apparently there are 2 payment runs a month for BOI so hopefully it will be sooner than the advertised 45 days. I know someone said you don't have to wait for it to hit your account before the 2nd move, but...........!

I got my cask back from BofI within a week

I always waited until i had the cashback in my account before i switched but looking back i wouldn't wait. Legally they have to pay you even if you move the next day. It's E.U. law so i'd switch right away if doing it again which i hope to do all over again in January .

misterk said:

How is everyone getting on with their switches, looks like EBS are going to make me wait the full 2 months for the cashback drawdown was 6 weeks ago

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Yes they are slow. They were clearly the slowest of my 3 switches.

I have approval from the 4 banks I intend switching to and have succeeded in getting the cash-back in bank 1 so currently making the move to bank 2 and have 5 months left to achieve the next 3 switches.

I have a query re how serial switchers deal with this loan condition: “Prior to drawdown of the loan, the borrowers solicitor is to provide a satisfactory up to date redemption figure from the relevant lender” when I am into the 3rd Switch and the original lender is paid off and thus the redemption figure is 2/3months out of date and I have since been through 2 other lenders.

lotus17 said:

I have approval from the 4 banks I intend switching to and have succeeded in getting the cash-back in bank 1 so currently making the move to bank 2 and have 5 months left to achieve the next 3 switches.

I have a query re how serial switchers deal with this loan condition: “Prior to drawdown of the loan, the borrowers solicitor is to provide a satisfactory up to date redemption figure from the relevant lender” when I am into the 3rd Switch and the original lender is paid off and thus the redemption figure is 2/3months out of date and I have since been through 2 other lenders.

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Your solicitor will be requesting a redemption letter from your current lender. So now that you are with Bank 1 and moving to Bank 2, Bank 1 will provide it. When you are leaving Bank 2 for Bank 3, the letter will come from Bank 2.