Can I get cashback with BoI and switch immediately to a non-cashback product with a lower rate?

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showerhead

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Hi,

My fixed rate mortgage is just finished now and looking to switch from PTSB for our mortgage which is > 500k and on BerC house. LTV 58%

I am mainly looking at avant and BOI. I see that they have good rates available for me but the best rates don’t have cashback.

For example:

BOI HVM 4 year fixed is 3.2%
Avant HVM 4 year fixed 3.2%

The 2% cashback offers are on less attractive interest rates such as

Avant 3 year fixed at 3.45%
BOI 2 year fixed 3.9%

It appears that the lower rate, HVM mortgages are available to existing customers as well as new customers (unlike PTSB who have much less favourable rates for existing customers!)

I’m considering switching to BOI 2 year fixed at 3.9% to avail of the cashback and then immediately break out of this fixed term to switch to the 3.2% HVM BOI mortgage. I think the same would work for avant.

Is this a reasonable strategy to get both cashback and a good rate or am I missing something?

Thanks for any opinions!
 
Don't some lenders require you to stay with your previous lender for at least a year before switching?
 
showerhead said:
I’m considering switching to BOI 2 year fixed at 3.9% to avail of the cashback and then immediately break out of this fixed term to switch to the 3.2% HVM BOI mortgage. I think the same would work for avant.
Click to expand...

This is a great strategy if it is allowed. I suspect it's not allowed. So check the small print.

If it is allowed, then be mindful of the small risk of an early break fee on the fixed rate.
 
In general

Avant treat their customers well and have low rates.

BoI tend to charge existing customers higher rates than new customers. And have had a long history of this.

So unless BoI is significantly cheaper, then go to Avant.
 
The HVM does not appear to be available to existing customers with BoI

Mortgage Interest Rates - Bank of Ireland

Looking for our current mortgage rates? Choose a fixed or variable mortgage interest rate today.
personalbanking.bankofireland.com personalbanking.bankofireland.com

  • The High Value Mortgage fixed interest rates are available to you if you:
    • are buying or building a property to live in as your home or are switching your mortgage loan to the Bank of Ireland Group from another mortgage lender outside our Group,
 
And if you stick in Existing on the filter for mortgage rates, they don't appear:

1787906900945.webp
 
You need to wait up to 45 days before breaking and switching for the cashback to be paid out.

  • The 2% Cashback payment will be 2% of the amount you borrow. The payment will be made into your mortgage-paying current account within 45 days of drawing down your mortgage.
 
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it's an interesting question so I have asked it directly here to see if someone already in the position can switch

Did you take out a cash back mortgage with Bank of Ireland recently?

BoI has much lower rates for non-cashback mortgages, but there does not seem to be anything in the terms and conditions to stop you switching to a lower rate within Bank of Ireland. If you have done this or tried and failed, please let us know. It is being discussed by a potential BoI...
www.askaboutmoney.com
 
Corola said:
You need to wait up to 45 days before breaking and switching for the cashback to be paid out.

  • The 2% Cashback payment will be 2% of the amount you borrow. The payment will be made into your mortgage-paying current account within 45 days of drawing down your mortgage.
Click to expand...

Not really. This is just the time it takes to process the payment. It does not say "If you break out or switch withing 45 days, we won't pay you"

So he can switch immediately
 
Fair enough. But for the sake of a month a half at the higher interest rate, I personally would wait until the money was in my account.
 
Thanks for all the input.

Yes the T&Cs for the cashback offers don’t seem to have any mention of breaking early or a clawback so I assume this can be done then.

I assume a lot of people who got a cashback with BOI and Avant have recently broke their fixed rate and refixed to future proof the potential interest rate hikes coming and I haven’t heard any issues with these. Albeit they are breaking likely a few years into the fixed term rather than a few days but that shouldn’t make a difference from a T+C perspective.

I’ll report back in a few weeks hopefully if all goes well.
 
The 45 days is the time it takes to process the payout. There is no clawback or 'cashback probation'. The two should not be conflated.

They are pretty explicit the only aspect of the deal that is contingent on staying with them is the additional 1% but even then it only relates to being a customer and not tied to remaining on a specific mortgage product

Mortgage Cashback Offer - Bank of Ireland

Get up to 3% cash back on your mortgage when you choose a fixed-rate mortgage & drawdown your mortgage with us.
personalbanking.bankofireland.com personalbanking.bankofireland.com
 
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