Bank of Ireland 1% cash back offer

R

Runner1

Registered User
Messages
34
Hi,

We are first time buyers and currently in the process of buying a home, details of which are:
Price: 325,000
Mortgage Required: 260,000 (80% LTV)

We have approval in principle from both EBS and Bank of Ireland and are awaiting to hear back from KBC. It looked like BOI was the best option due to their 1% cash back offer however I have been wary that there must be some catch...I was thinking of fixing for 2 years and availing of the offer (receiving €2,600 back) and then could switch to the more competitive rate of EBS or another lender.

I have now read that if you change lender within 5 years (60 months) you have to pay back the 1%...so doing the sums on the current variable rates it would appear that the deal isnt as good as it first appears...

KBC (3.89%) : 1224 X 60 = 73,440

EBS (4%) : 1241 X 60 = 74,460

BOI (4.2%) : 1271 X 60 = 76,260 – 2,600 (cash back offer) = 73,660

Obviously this is assuming rates stay the same but based on the above we would actually be €220 worse off with the deal!

Is it the case that the deal is simply a gimmick to get you on board and would we better off going after the lower rates of the other lenders?

Thanks,
David
 
Bank of Ireland has tended to be very expensive and does not treat its existing customers well, so you should avoid them.

KBC does not pass rate cuts to its existing customers.

The only lender which allows existing customers to get lower rates if their LTV falls is Ulster Bank, so maybe you should consider them.

You should not really base your decision on moving after two years. It's an expensive business and if your income or credit record has changed, then you may not be able to move.

Brendan
 
For those rates check if they're the same rate after year 1.
I'm with KBC and paying 4.59%. They haven't dropped the rate for 2 or 3 years now.
Someone I know just got a mortgage with them and was raving about the rate they were getting. When I got them to check they said in year two it was going up. I can't remember to what. It wasn't my 4.59%. It was more something like 4.3% or 4.4%
So do the same check for the 3 banks and just don't look at the introductory offers.
 
Runner1 said:
Hi,

We are first time buyers and currently in the process of buying a home, details of which are:
Price: 325,000
Mortgage Required: 260,000 (80% LTV)

We have approval in principle from both EBS and Bank of Ireland and are awaiting to hear back from KBC. It looked like BOI was the best option due to their 1% cash back offer however I have been wary that there must be some catch...I was thinking of fixing for 2 years and availing of the offer (receiving €2,600 back) and then could switch to the more competitive rate of EBS or another lender.

I have now read that if you change lender within 5 years (60 months) you have to pay back the 1%...so doing the sums on the current variable rates it would appear that the deal isnt as good as it first appears...

KBC (3.89%) : 1224 X 60 = 73,440

EBS (4%) : 1241 X 60 = 74,460

BOI (4.2%) : 1271 X 60 = 76,260 – 2,600 (cash back offer) = 73,660

Obviously this is assuming rates stay the same but based on the above we would actually be €220 worse off with the deal!

Is it the case that the deal is simply a gimmick to get you on board and would we better off going after the lower rates of the other lenders?

Thanks,
David
Click to expand...
 
Agree with Brendan totally. Bank of Irelands treatment of current mortgage holders has been the worst of all lenders. Avoid them like the plague.
 
You must log in or register to reply here.
Back
Top