EBS refuses switch claiming new Central Bank rules mean I must stay with BoI a year before switch

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Peppermint

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Currently in the process of doing a straight switch to EBS, am currently with BoI since last June.

Got an email with this comment today:

“I hope you are well. Central Bank have now introduced new rules preventing lenders taking on switcher mortgages within a 1 year timeframe. The fact you switched in June 2018 means case is on hold and I can submit same on the first of June. This is now the case with all Irish banks.


Do you want me to hold all information until this time?”

This is news to me. Has anyone else been told this in the course of making a switcher application?
 
Ask them to tell you where the rule is coming from.
There are credit worthiness regulations, but I'm not aware of a CBI rule preventing switching within first year.
 
Also never heard of this. Seems very unlikely, it would be splashed across every newspaper "Central Bank limiting switchers", it would fly in the face of everything the CBI say about switching causing competition on rates. See https://www.askaboutmoney.com/threa...h-an-existing-lender-before-switching.209609/ for minimum time with current lender by bank. Some people say EBS have no minimum, others say 12 months. Some say 24 months for PTSB, I was approved with PTSB after 1 year, so its very hit and miss it seems. Again, amazed if this is a CBI thing, and I certainly hope it isnt!!
 
Thanks for responses.

I have asked that they send me on the update from central bank outlining this new rule.

Also at my initial meeting with the mortgage advisor I told them we were only with BOI since June 2018 and was told this wasn’t an issue.
 
You could email the Central Bank yourself. Ive heard they normally respond promptly. Also my experience of EBS is that one person will say one thing and another person another. Some know their stuff some dont. You have to appreciate that EBS are still a bank operating in 1980's Ireland!
 
"central bank rule" might be the banks way of saying "insurance reasons" or "health and safety". Generally they can't back these things up ! But it looks like banks may start having policies on switching. Wonder would this be an issue for the central bank is could they dictate that banks can't insist on length of time with current lender?
 
misemoi said:
Wonder would this be an issue for the central bank is could they dictate that banks can't insist on length of time with current lender?
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Central Bank can't force any lender to change their underwriting criteria to be more flexible.
 
So EBS responded and said apologies for confusion, but it is actually new EBS policy.

When I asked was this policy outlined on their website or somewhere publicly the response was that is is “credit policy coming from our CEO and is an internal document only”.

If I hadn’t queried this I could have believed that this was a new CBI rule.

Very frustrating having gathered all the required documents and getting this far with the process.
 
Thanks, that's definitely a recent change in their policy.
Did you provide statements for a full year, or did they assume you'd only had mortgage since June!
 
No they only asked for 6 months mortgage statements. I would have given them the previous 6 months before June if they’d asked for them.

And like I said I specifically asked at our first meeting with the advisor if the fact we’d switched to BOI last year would be an issue, and was told no.

The advisor will resubmit the application in June if I want, pending provision of updated statements/payslips between now and then.
 
Peppermint said:
So EBS responded and said apologies for confusion, but it is actually new EBS policy.

When I asked was this policy outlined on their website or somewhere publicly the response was that is is “credit policy coming from our CEO and is an internal document only”.

If I hadn’t queried this I could have believed that this was a new CBI rule.

Very frustrating having gathered all the required documents and getting this far with the process.
Click to expand...
I've a formal complaint lodged as they don't advertise this on their website not did customer adviser mention it. I had to get 2 sets of bank statements and all the other docs on to be told to apply again in 5 weeks time when I had passed 1 yr with boi. I argued that by the time deeds of assignment, house insurance etc switched I would be passing 1 year anyway but underwriting would not agree to this. I had stated I would not drawdown before 1 year was up as there woukd be a breakfee.
 
RedOnion said:
Thanks, that's definitely a recent change in their policy.
Did you provide statements for a full year, or did they assume you'd only had mortgage since June!
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The icb report has all previous mortgage on it so underwriter should see the switch last year and the previous mortgage provider before that.
 
So IT have taken to trawling forums for stories. Instead of doing research and interviews.
 
misemoi said:
So IT have taken to trawling forums for stories. Instead of doing research and interviews.
Click to expand...

When something interesting comes up which could be helpful to others, I often email a few personal finance journalist to draw it to their attention.

If the Irish Times article causes a few people to switch, then I would be delighted.

Brendan
 
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