BoS Mortgage Switch

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apd

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Hi,

Is anyone familiar with the Bank of Scotland mortgage switch offering at the moment?

[broken link removed]

They seems to be offering a discounted tracker rate of 3.45% for the first two years?

Is this essentially a "fixed" rate for 2 years or if the ECB raises rates by 0.5% during the two years will it go up to 3.95%? i.e. is it just a low starting rate which will still move during the 2 years?

Also after the 2 years are you tied to them?

Thanks
 
Hi there
The tracker rate is discounted by 0.5% below the ecb rate for the 2 year period of the offer. It tracks the ecb rate but remains 0.5% below it so it is not fixed.
If you move within 5 years they will claw back the 1000 EUR towards legal fees and 150 EUR valuation fee that they pay as part of the offer.
 
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Yes, it will vary with the ECB. However, their 'goto' rate after the 2 years is still very attractive... only 1% above ECB. But, they seem to be very strict when it comes to handing out mortgages. They will tell you over and over again on the phone how "we are entering the market as a responsible lender...".

They claim in their press ads that your repayments cannot exceed roughly 40% of disposable income. If you're a FTB and you're stretching yourself to get on the ladder (basically what FTB isn't!) then I'd say forget it.
 
The BOS offering is a tracker rate of 0.45% ABOVE the ECB rate (currently 3.45%) for 2 years. After the 2 years it reverts to a 1% tracker rate (currently 4%).

This is a variable rate and not fixed. The rate can and most probably will change over the next 2 years

You are never tied to the BOS with this rate. You can leave before or after the 2 years if you wish without penalty.

If you accept the cashback deal of €1000 you have to stay with the BOS for 5 years, otherwise you pay the €1000 back to them.
 
and just a matter of interest they will only lend full amounts, ie you want 200k in 4 stages you have to take the full 200k immediatley
 
slave1, you can draw down in a maximum of 2 stages

Liteweight, it does not apply to investment properties
 
Hi bobk, I have recently ( this last month) taken out a switcher with BOS and it was single drawdown only according to the branch, with the advice of sticking the "extra" in the bank until required to gain interest, I have it with Rabo, if you could find some reference to this multi draw down I'd appreciate it
 
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