Bank of Ireland launches 1% cash back to attract switchers

Bank of Ireland offers 1% cash back to mortgage switchers



Bank of Ireland has announced that from today (26 January 2015) it will pay owner occupiers 1% of their mortgage amount when they switch their mortgage to Bank of Ireland. The 1% payment, which is not capped, is designed to cover legal and property valuation fees associated with switching - for example, a homeowner switching a €200,000 mortgage to Bank of Ireland will receive a payment of €2,000. Switchers to Bank of Ireland can borrow up to 90% of the value of their home.


Commenting on the announcement Aine McCleary, Head of Mortgages at Bank of Ireland, said: “We are intent on building on the significant momentum underway in meeting the needs of new and existing mortgage customers. Our €2 billion mortgage fund that we launched last year is now fully subscribed and we have launched a further €2.5 billion fund to meet customer demand. We’re confident that Bank of Ireland’s new mortgage rates, combined with the extension of our Stamp Duty offer, and the new and uncapped 1% offer for switchers to December 2015, all provide customers with a mortgage proposition that’s second to none in the Irish market.”


The announcement comes just weeks after the Bank announced a reduction of fixed and variable mortgage interest rates, a new €2.5 billion mortgage fund, and the extension of its highly popular stamp duty offer to the end of 2015 which has already benefited thousands of customers. According to industry statistics (BPFI data Q3 2014), the average mortgage taken out by someone moving house is €224,431, which makes the Bank’s stamp duty offer worth over €2,200 to the average customer moving to a new home.


Bank of Ireland’s new range of very competitive rates ranges from 3.80% for a two-year fixed period, to the Irish market’s only 10-year fixed rate from 4.50%. These rates are available to switchers, people moving home, and first time buyers. In addition, the Bank also announced that existing mortgage customers on a variable rate or coming to the end of a fixed rate term can now avail of the new business fixed rates.


ENDS

I am not really sure why anyone would switch to Bank of Ireland as their rates are not competitive.

Brendan

it seems to be a further kick in the teeth to existing customers like me who cannot even avail of the new rates, never mind avail of the 1% bonus !

We are on 4.25% variable, so it looks like we could fix at 3.8% for two years according to this article. Should I call my branch or the general mortgage line to negotiate this ?

gnf_ireland said:

it seems to be a further kick in the teeth to existing customers like me who cannot even avail of the new rates, never mind avail of the 1% bonus !

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But in the last sentence of Burgess's post it states that existing customers can avail of the new rates - if they are on variable or coming to the end of their fixed rates.

RiceCakes said:

We are on 4.25% variable, so it looks like we could fix at 3.8% for two years according to this article. Should I call my branch or the general mortgage line to negotiate this ?

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I don't think it's a question of negotiation, either you're entitled to it or not. But you ideally should think about whether you should switch or whether with KBC whipping up competition and with all the hoo-ha about high rates in Ireland whether Irish banks will start to reduce their rates.

Not only is KBC offering 1K to switchers but so too is PTSB.

And if you go about switching, and get your deeds called up many of the banks will contact you to offer you a better rate than your current one according to the Irish Independent:

"Mortgage holders get rate cut after threat s to switch"

Bronte said:

But in the last sentence of Burgess's post it states that existing customers can avail of the new rates - if they are on variable or coming to the end of their fixed rates.

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Hi Bronte

I just reproduced the press release which says that existing mortgage customers on a variable rate or coming to the end of a fixed rate term can now avail of the new business fixed rates. In other words, they can't avail of the variable rates for new customers.

Sorry I missed the word 'fixed' - reading too fast. So the banks are trying to entice people to fix and guys you know what when you fix, you can't switch without major cost. Be warned. Sneaky stuff. I think there is a full department in banks that dream up this stuff, who are no doubt reading this.