Is the 1% cash back after 5 years calculated on the original balance or balance at 5 years?

Brendan Burgess

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This has come up a few times and I don't know if it has been answered conclusively.

Is it the same for BoI, EBS and ptsb?

Rather than give "I think" answers, could you quote the relevant wording in the loan agreement in your answers.

Brendan
 
BoI T&C's Cashback
  • The 1% cashback payment at the end of year 5 is 1% of the mortgage loan amount you originally drew down. The 1% cashback payment will be made into your mortgage paying current account within 45 days of the 5th anniversary of your mortgage drawdown.
  • To qualify for the payment of 1% in year 5:
    • Your mortgage must have been drawn down within the Cashback PLUS Mortgage offer period;
    • The Loan originally drawn down less scheduled repayments must still be owing on the fifth anniversary of the draw down date;
    • You must have made all of your mortgage payments in full and on time;
    • You must have met all of your other obligations under your mortgage loan documents in full;
    • You must still live in the home you mortgaged to secure the loan on the 5th anniversary; and
    • We must not have agreed or arranged to allow you make any reduced mortgage repayments or stop making repayments for any time. If you qualify to take a three month payment holiday and avail of it, it does not affect your entitlement to the 1% cashback payment at year 5.
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EBS T&C's Cashback
  • 1% Back-in-Cash in year 5 means we will pay you 1% of the mortgage loan amount originally drawn down. We will pay this 1% into the current account you use for mortgage repayments within two months of the 5th year anniversary of the mortgage loan drawdown date.
  • To qualify for the EBS 1% Back-in-Cash on the 5th year anniversary of your mortgage loan drawdown date you also need to:
    • Have your mortgage loan repayments up-to-date.
    • Have met with all your other mortgage loan terms and conditions.
    • Have outstanding scheduled repayments to be made on your mortgage loan.
    • Have the property to which the mortgage loan relates, as your principal private residence in Ireland.
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OKGO

That is brilliant, thanks.

So if someone has the funds to clear their mortgage, they should leave a sufficient balance so that they have something left after 5 yearts.

Brendan
 
BOI told me that 75% of the original mortgage balance must be outstanding after five years to get additional 1%.
 
Brendan,

The above are the 'advertised' T&C's for both BoI & EBS. It is not clear what terms, in relation to overpayment or outstanding balance, would disqualify someone from receiving the 1% at year 5. They may have more terms in the actual loan documents (if any AAM users can share these)

But yes, paying off a lump sum as early as possible, within the terms, makes the most sense
 
_OkGo_ said:
The Loan originally drawn down less scheduled repayments must still be owing on the fifth anniversary of the draw down date
Click to expand...
That would appear to suggest that the 1% cashback will not be payable if a borrower makes any repayments over and above the scheduled repayments.

Maybe that's not what applies in practice but that's what the wording implies.
 
Agreed @Sarenco , that was my interpretation also but as you have said, what applies in practice vs implied wording may be different

@PebbleBeach2020 , do you have this in writing or terms as opposed to what a mortgage advisor may have verbally told you?
 
PebbleBeach2020 said:
BOI told me that 75% of the original mortgage balance must be outstanding after five years to get additional 1%.
Click to expand...

PebbleBeach

Just to be clear. You have this in writing from Bank of Ireland?

So that is their practice, rather than what they say in the terms and conditions.

According to the Ts & Cs , if you overpay or underpay your mortgage, you are not entitled to the 1% cash back.

Brendan
 
I know this might not be the right thread, but anyway...

Does anybody know if taking a Covid payment break disqualifies you from getting the 1% cashback after 5 years from BOI or EBS?

The above Ts&Cs suggest that it does disqualify you, but on the other hand the Covid payment break was not foreseen when they were written. Has there been any concrete info or threads about this? (I couldn't find any.)

Thanks
 
Last edited:
@Paul F
It's specifically addressed in BOIs FAQ:
"10. Will a payment break impact my 1% Cashback payment due to me at year 5 of my mortgage?
No, application for a payment break does not affect cashback payments to customers.*"

I don't see anything bin the EBS t&C's that would mean it's not payable?
 
Thanks @RedOnion
 
I asked them on the phone recently about what happens if I make a unscheduled overpayment in regards the cash back. They said it doesn't matter once some of the loan is still outstanding after 5 years. I asked if say, after 5 year fixed term ends, you only have 1eur on the mortgage, will they still pay out. The answer was yes.

No mention of 75% of loan.
 
Thanks @fungie20. All very strange because @PebbleBeach2020 has the opposite in writing from BOI.
 
I have it in writing. If you can get them to put it in writing, then bully for you.

If it doesn't affect you then no need to do again.
 
I'll dig out my mortgage documentation to see what it says. I actually asked this question twice, to two different people. Got the same answer, once you have a mortgage with them at that stage, they will pay it.
 
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