How often can you switch mortgage providers?

F

fauxblade

Registered User
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With the great cashback promotional offers from mortgage companies at the moment, and as far as I can tell with bank of Ireland the only bank with a clawback if you switch early, whats to stop you switching every six months?

Would a bank refuse to take you on if you've switched from another bank recently?
 
There is no clawback on BOI's cash-back offer.

There is nothing to stop you switching as often as you like although I gather some banks will not refinance a mortgage that is less than a year old.
 
Obviously, costs are a consideration when asking about switching your mortgage regularly....

Sarenco said:
....There is nothing to stop you switching as often as you like although I gather some banks will not refinance a mortgage that is less than a year old.
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A cautious lender might be concerned as to why a borrower is switching from Bank "B" to Bank "C" soon after a switch from say Bank "A", to Bank "B". Then there is also the concern that if the Borrower has just used (say) BoI for the cashback offer, will they be using the next Bank and then moving on just as quickly (essentially a cashback carpetbagger if you like :))
 
I would imagine you need to take out a new policy for mortgage protection as it relates to the actual loan.
Each year, you will be a year older and may have health issues that were not there the year before.. maybe you started smoking?
That means your premium will also go up.
Something to also bear in mind.
 
No, in most cases you simply notify your insurer of the change of mortgage provider.

You shouldn't need additional cover unless you are increasing the amount borrowed or extending the term.
 
Sarenco said:
There is no clawback on BOI's cash-back offer.

There is nothing to stop you switching as often as you like although I gather some banks will not refinance a mortgage that is less than a year old.
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Has this changed recently? We're about 18 months into our mortgage with BoI, ideally I'd like to switch now and take advantage of another cash-back off if I can. In our loan offer letter though we have a clause in Part 4 Special Conditions which states...

"If the borrower repays 50% or more of the Loan within 5 years of the date of full draw down of the Loan, the Borrower agrees (a) to pay the Sum back to the Lender and (b) that the Lender can add the Sum to the amount it requires to redeem the loan"

So this looks like it isn't an option for us. Has this changed on more recent offer letters?
 
That clawback provision is unenforceable and can be safely ignored.

In my opinion, the provision was always unenforceable but, in any event, new Regulations were introduced in 2016 that put the issue beyond doubt.
 
Sarenco said:
That clawback provision is unenforceable and can be safely ignored.

In my opinion, the provision was always unenforceable but, in any event, new Regulations were introduced in 2016 that put the issue beyond doubt.
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That's good news, I'll have to have a look for the 2016 regulation and find the reference. Unsurprisingly the BoI mortgage dept failed to mention that when I asked about the clawback.
 
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