Mortgage switch declined as not with existing lender 12 months

Just to clarify some points.

PebbleBeach2020 said:
I can't understand why the applicant doesn't switch for 12 months to bank A and fix for 1year. Then move for another cashback if that's his flavour for another 12 months and fix for 1 year
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This is exactly what I have been doing. I stay with a bank for 1 year and move after the fixed rate period is up. I was declined by the bank because I move every 12 months...

PebbleBeach2020 said:
By all means, doll the dice and see if u can get 4 or 5 switches done in 6 months. But don't cry foul if the bank have wasted a fraction of your time compared to the amount of their time and money you wasted.
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You have completely missed my point here. I am not looking to to multiple switches, just the one. My issue here is that when I applied to the bank they should have asked "have you switched in the last say 3 years" I would have said "yes I have" at which point they should have declined my application but they didn't, they sent all my details to underwriting and rejected the application because I wasn't with my existing lender for 12 months. When I was with them for 12 months I resubmitted the application again where i was refused for my switching history... So yes, the Bank dropped the ball and wasted my time....
 
Your 'they never asked so I never answered' attitude is bordering on hilarious. Why are you so adamant that they should ask you that question? Why not volunteer the info?

You messed up by applying too early (your fault) and your switching history marks you as a bad customer (your fault) so its you who has wasted your own and the banks time.

But how exactly was your time wasted? Are you now applying for approval with a third Bank? Why not do it in parralel to avoid the situation you are in? You could have one approval and one rejection so it would not make any difference to you.
 
_OkGo_ said:
Your 'they never asked so I never answered' attitude is bordering on hilarious. Why are you so adamant that they should ask you that question? Why not volunteer the info?
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Because they declined me on those grounds. Believe it or not I don't have the intricate detail of the Bank's credit policy. Do you???? Besides from an efficiency point of view it makes no sense to put customers through to underwriting that don't have a chance of approval.

_OkGo_ said:
You messed up by applying too early (your fault) and your switching history marks you as a bad customer (your fault) so its you who has wasted your own and the banks time.
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Again it pure bureaucracy. So if you change electricity suppliers every year you are a bad customer? So to your point of being a bad customer the Central Bank is incorrectly advising customers to switch? You should inform them of this fact so they can do a press release and row back on the advice they have been giving.

_OkGo_ said:
This is probably more relevant to the other discussion on mortgage rates (Variable rates) but we are not going to see better rates or more competition until the percentage of switching increases and trackers start to decline. Avant are clearly aware of this and it is why they are so selective with their location/valuations etc. They are not looking to take over a large chunk of the market. If switching was more common, there would be more opportunity for a larger competitor to easily take a modest market share
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I find it interesting on one hand you are advocating switching and on the other you telling me that I am a bad customer for switching. Pick a side.
 
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imalwayshappy said:
So if you change electricity suppliers every year you are a bad customer?
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Not exactly comparing apples with apples is it?? Electric provider can be changed in 10mins with a debit card and an MPRN, mortgages are a little more involved. And electric providers have their profit built into introductory offers. Sadly the banks offering cashback were not so smart when they created these offers, they never envisioned someone switching so regularly so maybe they have finally copped on and will refuse more applications who switch too regularly.

imalwayshappy said:
So to your point of being a bad customer the Central Bank is incorrectly advising customers to switch? You should inform them of this fact so they can do a press release and row back on the advice they have been giving.
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Not even close to being in the right context. The central bank are not promoting what you are trying to do. They are correctly advising customers who have never switched to review their mortgages because there are many reasons why they can now avail of much better rates and value. The cashback offers are not good value because they come with risks as you have found out.

imalwayshappy said:
I find it interesting on one hand you are advocating switching and on the other you telling me that I am a bad customer for switching. Pick a side
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So if you bothered to quote the rest of my post, I also highlighted, IMO, why many people see risk in regular switching. I can now add 'cashback switching history' to that list. I'm all for switching for the best rates, there are a number of decent options in the 3,5 and 7 yr fixed terms. The only winner in the yearly switch is your solicitor.

I don't think what you are doing is wrong, I just think your frustration of rejection is misplaced. Switching regularly to claim cashbacks was a bit of a loophole and the bank you are dealing with now seems to have identified and stopped it. You are just unfortunate that it happened to you
 
I was planning to do multiple switches but have since decided against it.

My thinking is that I am going to be dealing with banks for a long time and it seems that rubbing them up the wrong way by cashback hunting for 6 months might be biting the hand that feeds me. Whether I like it or not I need banks to look on me favourably so I have the best option in the future. Would taking the piss and grabbing 2 cashbacks in 6 months and then switching effect that. I'm not sure is it worth the risk.

However in saying that, I still plan to switch every 2 years or so. Maybe that will have the same effect but you'd imagine not.
 
I am at the stage where it no longer makes sense to switch, but I have done four switches on our 7 yo mortgage, one at a time and I always had the required length of time with the previous bank that the next bank asked for, and the paperwork for drawdown always referred to the bank I was leaving. I believe if they want to stop multiple switches they all need to build in this minimum length of time required, like PTSB does. I guess up until recently the volume of switchers didn't cause any alarm bells but perhaps now is.
 
imalwayshappy said:
This is exactly what I have been doing. I stay with a bank for 1 year and move after the fixed rate period is up. I was declined by the bank because I move every 12 months..
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Hi, could you clarify, were you trying to move to a lender that you had been with previously?

Apart from that, there is a genuine underwriting concern with serial switchers. A 2% cash back is enough to cover 5 months mortgage payments, on a 30 year term. The effect cashback can mask underlying affordability issues.
 
imalwayshappy said:
I did yes and was with them for 12 months.
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Thanks for clarifying.

So, the lender already made a loss by taking your business in the past. They've no interest in taking your business to make another loss. Makes perfect sense to me.

If it's the lender I'm thinking of, there is something in their terms and conditions that they won't pay cashback to a borrower on the same property twice. But maybe they've no way of not paying a cashback once the drawdown happens.

If they offered you the mortgage, but without cashback, would you still take it?
 
RedOnion said:
Thanks for clarifying.

So, the lender already made a loss by taking your business in the past. They've no interest in taking your business to make another loss. Makes perfect sense to me.

If it's the lender I'm thinking of, there is something in their terms and conditions that they won't pay cashback to a borrower on the same property twice. But maybe they've no way of not paying a cashback once the drawdown happens.

If they offered you the mortgage, but without cashback, would you still take it?
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No I wouldn't go to this lender without the cashback to be fair. I have absolutely no issue with them not giving me the cashback. Rather then doing searches on my ICB and CCR and getting me to submit statements to underwriting etc. if they just called this out I would have said fair enough, I won't continue the application.

The Bank you are referring to is EBS where you can't get cashback twice on the same property, it is clear on their website. Fair play to them for being upfront. I knew not to pick up the phone to them as I knew their stance on cashback.

This is a good learning point for switchers, maybe the sun is setting on multiple switches.
 
imalwayshappy said:
Rather then doing searches on my ICB and CCR and getting me to submit statements to underwriting etc. if they just called this out I would have said fair enough, I won't continue the application.
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You realise that they may not have known you previously had a mortgage with them until they passed it through underwriting? possibly not until they saw it on your ICB / CCR?
 
Agree entirely with those saying that OP is being subjected to a bit of a witch hunt here. A lot of the criticisms are based on straw man fallacies. This is not another case of the SeanOg playbook in use; OP said that at least at the second attempt at approval, they were 12+ months with their existing lender. Accusations of sharp practice and subterfuge (whether or not you agree with such accusations levied against the 3 switches in 3 months brigade) are well wide of the mark in this case.

Seems to me that OPs main quibble is that while they are willing to play by whatever rules the bank sets, it's a bit much when banks seem to make up new approval criteria on the fly.

@imalwayshappy - I'd be interested to know who the bank in question is. Since it's not EBS, the list of possibilities is a short one...
 
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