BoI Mortgage SVR Reduction Attempt

ebowdia

Registered User
Messages
15
Hi there,
Having heard a few success stories regarding some BoI customers getting SVR reductions upon threatening to move to another lender I am going to see if I can get BoI to reduce my SVR.

Current LTV:< 50%
SVR: 4.1%
Term 25 years: (22.5 remaining)
Incentive: Received 1% cashback (2014)

What is the best way to go about this though for the best outcome?

Call the bank and state my intent?
Write to the bank and state my intent?
Get solicitor to request a mortgage balance remaining redemption letter from the bank to show that I mean business?

I have read the posts regarding BoI retaining the right to clawback the 1% Cashback incentive but it seems that while they reserve the right they have never exercised it.

If I was to get a substantial SVR reduction I could be tempted to stay with BoI, but no reduction or just a token will prompt me to move.

What do folk think?
 
3.9% appears to be average SVR with BOI.I got 3.6%.
They will not go below 3.6%
You could fix at 3.1% for 3 years which is 1% below your current rate.
Otherwise just go with EBS on A variable rate.
 
They lowered our rate to 3.3% when we started the switching process, we switched anyway (now on 3.1% with AIB).
 
Shweeney, at what stage of the switching were we when BoI offered the lower rate?
What rate did ye originally have?
 
BOI reduced our SVR, but would not match the lowest in the market, so we moved anyhow. Call them and tell them you are planning to switch to see what they will offer you..However, as mentioned above and as previously confirmed by Richie Boucher, they are deliberately keeping variable rates high to encourage people to fix. If you're happy to fix, then you can get 3.1% with BOI.

But if any further drops in variable rates, you will not benefit.

You are in a great position with your 50% LTV. AIB will give you 2K cash back and a 3.1% variable and have a history of passing on rate cuts to current customers.

The move process has been documented previously in some key posts, it really is not that arduous. AIB were very efficient in our dealings with them in a recent switch.
You will get change from your €2K after legal fees/valuation etc plus a good drop in your monthly repayment amount, plus in a good position if rates do fall further..
 
Shweeney, at what stage of the switching were we when BoI offered the lower rate?
What rate did ye originally have?

I initially contacted BOI and asked them to reduce the rate or we'd move, but they only offered us the published fixed rates.

So I then started the process of moving to Ulster Bank. Solicitor called in the deeds and we got 90% of the way to switching to UB (without any further contact from BOI) before hitting a snag relating to life insurance.

At this stage AIB had lowered their rates so I went to them instead as they said they could work around the insurance issue. It was only when my solicitor contacted BOI for an updated redemption figure that BOI rang me to offer the lower variable rate, which I took as there were no strings attached and I figured I might as well pay less while waiting for the AIB switch to go through (which took another couple of months). Our LTV was <50%. If BOI had offered me 3.3% when I rang initially I wouldn't have switched but by the time they did offer it I had already done all the legwork for switching, and I was on the hook for the solicitors fees so needed the 2k from AIB.
 
Thanks very much guys for the very usual info and advice - it's great to know what experiences folk have had going down this road.

My first step so will be to contact BoI and see if they will offer a rate reduction.
The chances may be slim, but if they were to reduce to 3.3% or so then I could be tempted to stay with them for now to avoid the hassle of moving.
If they are not willing to budge much or at all then I'll initiate a move.

I'll report back how I get on.......
 
Hi.I have a tracker mortgage and have 12 years left on it.I planned to sell my apartment and purchase a house with the help of an extra mortgage but have been denied this extra mortgage by my bank (my form of employment is not full-time).I am now thinking to save like mad for the next 10 years to try to purchase without the extra help from the bank.Is it worth me hanging on to my tracker and extending to 20 years,putting the monthly cash reduction into savings to have in 10 years time,and I still have a tracker for when I want to purchase a house or should I keep it at the 12 years and be done with it probably before then?
 
Hi Juliejules

To be honest, I would be surprised if the bank agreed to extend the term of your mortgage in these circumstances but I guess there's no harm in asking.

Of course, there's no guarantee that the current spread between trackers and other variable rates will be as big in 10 years time as it is now.
 
They have said that I can extend it.I don't know though what is the best thing to do as my career is unlikely to change in the bank's eyes so the likelihood of me getting an extra mortgage in 10 years time will probably not improve.
 
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