Key Post I got cash back three times in 6 months
- Thread starter Sean Og
- Start date
Never heard of directlaw.ie but worth looking into . Just make sure there are no hidden fees etc. Make sure it's for everything and nothing extra added on. I wouldn't worry too much about the 2% on your monthly repayments, concentrate on EBS, PTSB and BOI for the 2% cash back and then KBC for the €3000. Then go to UB for their very good fixed rates.
Latest update from me is that I have full approval from BOI and PTSB, Ulster Bank are really not impressing me at all. Almost a month after I have submitted my application I have heard nothing. Mortgage advisor out sick, you can't get anyone in any branch, their mortgage centre can only send an email etc. So far, their switching process is abysmal vs BOI, PTSB or AIB.
Inspired by Sean Og here, I’ve been busy attempting to make arrangements for 4 quick mortgage switches within 6 months, moving my mortgage from EBS where I am currently to PTSB - BOI - KBC and finally end up with UB with their 4/5 or 7 year fixed rates. And hopefully pocket the Cash back deals from all 4 banks along the way.
I visited each bank and submitted the documentation required this week and am waiting for the approvals to come back. I’m following Sean Ogs advice in this thread and will wait for all 4 approvals b4 proceeding and then attempt to get my solicitor to move with speed to draw down all 4 mortgages in turn within the 6 month approval period.
A few Qs have arisen though:
1. The mortgage advisor in PTSB seemed to suggest that I may only be offered a 3 or 5 year fixed rate. Obviously I don’t want this when I intend moving again quickly. Is there any way around this? If I pushed for the 1 year fixed rate, would there be much of a break fee if I moved the mortgage to another bank within a month of drawdown? What’s the advice here?
2. Is there a risk I might be left stuck with PTsB if the other banks spot I’ve made a move? I certainly wouldn’t want this based on the way they treat long term mortgage customers.
3. Is there any risk that the banks would black list me if I ever wanted to get a new mortgage off them in years to come?
4. KBC said I would have to open a current account with them to be avail of the switcher mortgage and I would have to have my salary changed to be paid into this account. Is there any way around this as this seems like hassle when I only intend being with KBC for as long as it takes to get the cashback?
5. Does each bank definitely not look up your details again/run a credit check once they approve you for 6 months? It wasn’t clear from the banks, how long approval lasts for.
I will do my best to pull this off. It seems very attractive to think I could earn a handsome sum playing the banks at their own game!! Is it this simple or are there risks?
I visited each bank and submitted the documentation required this week and am waiting for the approvals to come back. I’m following Sean Ogs advice in this thread and will wait for all 4 approvals b4 proceeding and then attempt to get my solicitor to move with speed to draw down all 4 mortgages in turn within the 6 month approval period.
A few Qs have arisen though:
1. The mortgage advisor in PTSB seemed to suggest that I may only be offered a 3 or 5 year fixed rate. Obviously I don’t want this when I intend moving again quickly. Is there any way around this? If I pushed for the 1 year fixed rate, would there be much of a break fee if I moved the mortgage to another bank within a month of drawdown? What’s the advice here?
2. Is there a risk I might be left stuck with PTsB if the other banks spot I’ve made a move? I certainly wouldn’t want this based on the way they treat long term mortgage customers.
3. Is there any risk that the banks would black list me if I ever wanted to get a new mortgage off them in years to come?
4. KBC said I would have to open a current account with them to be avail of the switcher mortgage and I would have to have my salary changed to be paid into this account. Is there any way around this as this seems like hassle when I only intend being with KBC for as long as it takes to get the cashback?
5. Does each bank definitely not look up your details again/run a credit check once they approve you for 6 months? It wasn’t clear from the banks, how long approval lasts for.
I will do my best to pull this off. It seems very attractive to think I could earn a handsome sum playing the banks at their own game!! Is it this simple or are there risks?
Niall-1980
Registered User
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I too am worried about point number 3 and I have no interest in doing point number 4 either especially if I am doing the dirty in that bank with the mortgage.
HollowKnight
Registered User
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On point 4 - KBC just want you to have €2500 deposited into your account each month. You could set up a standing order from your current current account for this.
Lads from my experience the Banks will not do an up to date credit check once they give you full approval. There underwriters go through everything and if they are happy they offer you the loan. They don't look again after 6 weeks. That's my experience. You can't be blacklisted because you are doing nothing wrong. All you are doing is taking the Government and Central Banks advice to shop around and get the best deal for you. If the Banks simply said we can take back the 2% cash back if you move your mortgage within 12 months then this would stop the multiple switches. The banks try to cover themselves (PTSB, BOI) by saying you must be 24 and 12 months with your current lender before you can get a loan with them. By applying all at the same time and getting approval you overcome this little obstacle . If a bank gets back to you and say "we see from the credit bureau report that another 2 banks have carried out checks on you within the last 2 weeks all you say is that you are shopping around and you are applying to a few banks to see who gives you a full offer. I think people read to much into this. Get the paperwork in order and get it sent off. Ask Red Onion what his thoughts are on the 1 years fixed rate and if you break it within 2 weeks what will the fee be. I think it will be zero or very little but a hard Bretix etc might have a big effect on the money markets etc. Anyway if like me you are getting €5-6000 a switch it will still be worth it.
I have copied this from the "Fair Mortgage Rate" debate on the other page. Here is the evidence from the Central Bank who are right behind us on the multiple switches 
. They are 100% correct. The cashbacks are great for the savvy switcher. There are 1000's to be made from this.
HK
I thought that you were being sarcastic. But it turns out to be a direct quote from the article
The cashbacks are useful for new buyers to buy the likes of a fridge for their new home, according to Central Bank sources.
Central Bank senior officials believe cashbacks should remain on the menu of mortgage options. They argue that they are particularly beneficial for those who switch their mortgages regularly.
Regulators feel there are more important issues to be addressed in the mortgage market, such as the cost of funds for banks.
Is the cost of funds an issue for the banks?
I would not have thought so.
The main issues impacting on rates are
. They are 100% correct. The cashbacks are great for the savvy switcher. There are 1000's to be made from this.HK
I thought that you were being sarcastic. But it turns out to be a direct quote from the article
The cashbacks are useful for new buyers to buy the likes of a fridge for their new home, according to Central Bank sources.
Central Bank senior officials believe cashbacks should remain on the menu of mortgage options. They argue that they are particularly beneficial for those who switch their mortgages regularly.
Regulators feel there are more important issues to be addressed in the mortgage market, such as the cost of funds for banks.
Is the cost of funds an issue for the banks?
I would not have thought so.
The main issues impacting on rates are
- The lack of any sanction for people who don't pay their mortgage
- Central Bank rules which apply the loss experience of 100% mortgages issued at 5 times earnings to people today who are borrowing 80% at 3.5 times earnings.
- Cash back
My mortgage is €250K.
Obviously, I will try to get a variable rate with PTSB but if I can’t, I could be forced into the following fixed rates to avail of the cashback:
1yr fixed rate @ 3.2% <50%loan to v
2 yr fixed rate @ 3.2%
3 yr fixed rate @ 2.85%
If I take the cashback and move the mortgage straight away, what would the break fees be for each of the 3 options above?
@lotus17
Since you've <50% LTV, you can get 12 month discounted MVR of 3.2%
Since this is a variable rate, there is no penalty for repaying early, so there's no messing about. I'd go with that if your intention is to switch again quickly.
The only rate that's better is the 3 year rate, but bigger risk of a small move in interbank rates ending up costing you a break fee.
Since you've <50% LTV, you can get 12 month discounted MVR of 3.2%
Since this is a variable rate, there is no penalty for repaying early, so there's no messing about. I'd go with that if your intention is to switch again quickly.
The only rate that's better is the 3 year rate, but bigger risk of a small move in interbank rates ending up costing you a break fee.
Hi All,
Apologies for delay in reply, i have approval from all banks and loan offers from all except UB (Very slow)
Hope to draw down first switch next week.
Biggest obstacle i had and still currently have is a nosey auctioneer, asking far to many questions !
Apologies for delay in reply, i have approval from all banks and loan offers from all except UB (Very slow)
Hope to draw down first switch next week.
Biggest obstacle i had and still currently have is a nosey auctioneer, asking far to many questions !
Hi Sean,
Some of the banks now require you pay them and they arrange valuation i am trying to work around this by using the auctioneer that one of the banks paid for, they are asking what bank is it for and why do you need it if you just got it done for bank X.
Concern is that they will pass information on to the local branch but i am paying them so that should be private information.
HollowKnight
Registered User
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That would be a serious breach of GDPR if the valuer told a third party.
My switcher applications have now been submitted to all 4 banks: PTSB, BOI, KBC and UB. Fingers crossed I get approval from all 4 so I can put this plan in action. I also emailed my solicitor yesterday to give him the heads up re the plan. He advised taking up the Title deeds from EBS now so we can be ready to move, once approval comes through. He has quoted €1,500 per switch which seems high so I will get back to him and see can I negotiate better.
I have also emailed Irish Life, the Mortgage Insurance company I am with to say I am currently considering switching my mortgage from EBS and have asked them will I be able to keep my Life Insurance if I move mortgage and also asked how can I expedite the process. I await their reply.
Is there anything else I can do to keep the ball moving?
I have also emailed Irish Life, the Mortgage Insurance company I am with to say I am currently considering switching my mortgage from EBS and have asked them will I be able to keep my Life Insurance if I move mortgage and also asked how can I expedite the process. I await their reply.
Is there anything else I can do to keep the ball moving?
You will also probably have to inform your home Insurance Provider each time you switch so as the new Bank is put onto your home insurance as an "interested party", Its no big deal, i just did it by email each time and they then just sent me out the new policy schedule with the new bank on it. They too probably were wondering what was going on but they just do what they are told. The title deeds part etc won't hold up their switching process from my knowledge.