What's the best strategy for a serial mover to avail of the best rates?

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RMGC11

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So what's the best strategy? Only switch once and then stay with that bank? Would switching every two years be a better idea? Depending on the number of switches allowed - one would then want to very carefully select the switching bank as that could potentially be the last one, right?
 
RMGC11 said:
So what's the best strategy? Only switch once and then stay with that bank? Would switching every two years be a better idea? Depending on the number of switches allowed - one would then want to very carefully select the switching bank as that could potentially be the last one, right?
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Well I've contacted aib and they are allowing me to switch back to them for their rate of 2.75 var @<50% LTV. (I was previously on 90%ltv)
Ulster bank require you to be at least 6months with your previous provider.
Boi require 12 months.
KBC will allow you to switch if you've recently switched once u have 12 months statements made up from both lenders.
Ptsb I'm waiting on a call back.
Ebs. The people in the mortgage helpline centre will not discuss rates and I've to make an appointment with a mortgage advisor in a branch to see if there are better rates available than the 3.3% I switched to, be it fixed or variable.
 
RMGC11 said:
one would then want to very carefully select the switching bank as that could potentially be the last one, right?
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This is a very important point.

Everything looks fine today. You have a good job and a good income. You are 80% Loan to Value. Well within the 3.5 times credit limit.

So pick a lender to get the 2% cash back and then switch again as soon as you can to someone else offering 2% cash back.

A few things can go wrong with this strategy
  • Your circumstances may change. You may move job or suffer a loss in income and not be able to switch. You separate from your joint owner and can't agree to switch.
  • The market will change. The 2% cash backs will probably be withdrawn or banned.
  • Even if nothing changes, in practice, most people just get too busy to switch so you end up defaulting to a very high variable rate and you stay on it.
If you are on a low LTV with a secure job you can take more chances

If you are pushing up against the 3.5 times limit and 80% LTV and you are thinking of changing jobs in the near future, you might be better off just going for long-term value.

However, if you have a 50% LTV mortgage and you are a permanent public servant with no intention of leaving, then it's less likely that you will have a problem in switching down the road.
So here are the options
  • Go for a variable rate with AIB as they have the lowest variable rate a good long-term record of passing on rate cuts to existing customers.
  • Go for a fairly long-term e.g. 5 years fixed rate with the likes of Bank of Ireland, so at least you don't have to worry about it for 5 years.
  • The Combo Deal. Go to Bank of Ireland, fix for one year, get the 2% cash back and then switch to AIB.
  • Go for the Double Switch. Start with EBS and get the 2% cash back. Switch to Bank of Ireland as soon as you can and collect another 2% cash back. Then switch to AIB for good long term value.
I would simply avoid permanent tsb in case you get stuck with them and can't move. If you do go for ptsb, then switch away from them as soon as possible.
 
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Thank you for the thinking on that Brendan!

Only switching to white-listed/reasonable trustworthy banks (subjective opinion) sounds like the right thing to do.

I assume LTV is another thing to consider - someone on a lower LTV would be more comfortable in taking the risk of getting stuck with a bank with high SVRs - and might consider a wider number of potential banks to switch to.
 
Generic Name said:
Just off the phone with PTSB. Guy I spoke with said you have to be with current lender for 12 months before they will consider you for a switch.
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I assume if your currently in a 1 year fixed rate, you can still start the switching process when you have 4 mths remaining, with a view to switching on expiry of the 1 year fixed? Otherwise if you have to wait until the 12 mths are up, before they consider you for a switch, you will be moved to an expensive variable while waiting for the switching progress to begin?
 
Has anyone approached a solicitor who won't charge you the 1k cost each time ?
 
RMGC11 said:
I assume LTV is another thing to consider - someone on a lower LTV would be more comfortable in taking the risk of getting stuck with a bank with high SVRs -
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A very good point - I have updated the original post accordingly.

Brendan
 
renter45 said:
I assume if your currently in a 1 year fixed rate, you can still start the switching process when you have 4 mths remaining,
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I don't think that the fixed rate you are on has anything to do with the new lender's attitude to you.

The lenders who give cash back, Bank of Ireland, EBS and permanent tsb, are more reluctant to take on people who have switched recently as they are quite likely to switch again and they will have "lost" the 2% they gave you. That is why AIB, KBC and Ulster are more open to serial switchers. If you switch to AIB for their low rate, that is likely to be your final switch.

Brendan
 
Would you know if the target bank you would be talking to about switching would have access to all your mortgage's history? I.e.: can they only ask about the last 12 months or the full mortgage history?

Trying to figure out if the more you switch - the less likely you are to get approved for other switches since they can see a more consistent pattern of switching - vs. only having access to your last x months - where they couldn't differentiate between a serial vs. regular switcher.
 
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