"Ireland's serial switchers play the mortgage cashback game"

Brendan Burgess

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A good article in the Sunday Times ( subscription required.)

Ireland's serial switchers play the mortgage cashback game

Some people switch mortgages to get the most favourable rate. Others are lured by cashback. And then there’s a slightly rarer breed: the serial switcher. These mortgage holders rapidly surf from one cashback deal to another — before settling down with the lowest rate on the market.


One poster on the Askaboutmoney forum says he has received about €28,500 in mortgage cashback (minus solicitors’ fees). This, he says, amounts to shaving seven years off his mortgage.

....

Another poster on the same forum — an accountant — has pulled in about €20,000 (before legal fees). Having taken out a €250,000 mortgage with Bank of Ireland at a variable rate of 4.5% in 2013, she switched to EBS three years later. In 2017 she moved to AIB, and last year switched to KBC where she is on a one-year fixed rate of 2.5%. She intends to switch once more later this year — most likely to a four-year fixed rate of 2.6% with Ulster Bank.
 
I read this article, what would be great if there is a tutorial outlining the steps!
 
Do some research my man, theres loads of info on this forum
 
I think the days of multiple quick switches are over, but you can fix for 1 year, then move the following year. The trick is getting your timing right so you don't get caught on the high variable rate, once your fixed rate expires.
I started 2nd switch in Feb and now just waiting to drawdown. Fixed rate expired 5th May.
 

No. At worst you can always choose variable and not wait 1 year. Also. Also Break fees new newly taken mortgages are 0 to very low
 
Dauhee said:
No. At worst you can always choose variable and not wait 1 year. Also. Also Break fees new newly taken mortgages are 0 to very low
Click to expand...

That's not necessarily the case though.

The recent tightening up of terms means means options are not so flexible.
The current state of play as advertised by the banks offering the % cash back deals:
BoI - min 1 yr w/ previous lender required to get mortgage approval.
EBS - min 1 yr w/ previous lender required.
PTSB - min 2 yr w/ previous lender required.

So options for quick switches are pretty much limited to one of the above initially, then one of the switcher offers at KBC (€3k flat), AIB (€2k flat) & UB (€1.5k flat) - where you're stuck for min of a year before you can go back to one of the banks offering a % back offer (but not one that you've been with before!).
 

When have the terms been changed as above? I moved to BOI 2 months ago and was with previous lender only 3 months when I got full approval
 
Dauhee said:
When have the terms been changed as above? I moved to BOI 2 months ago and was with previous lender only 3 months when I got full approval
Click to expand...

Very interesting, there are cases when we have seen Banks change the rules on a case by case basis. Who were you with? Did BOI say anything about only being 3 months with previous lender? Did you do your application online or in a Branch?
 
I did online the month after I moved. BOI were happy to entertain!

If you don't ask, you don't get
 
Do they know you are switching after only a month? Have they made you an offer yet? Maybe when it goes to the underwriters they might flag it up? Hopefully not and you will be fine.
 
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