Mortgage switch declined as not with existing lender 12 months

imalwayshappy

Registered User
Messages
95
Why do Banks make it so difficult to switch mortgage. I'm on a fixed rate due to expire in 1 month so I said to myself I will change provider for a lower rate and start the ball rolling so I will be in a position to move when my fixed rate is up. After sending in the mountain of paper work I get a response "declined". I say that's strange because on paper i'm very good. The logical person would suggest that maybe it was an issue with my CCR or ICB but no.

I am with my lender 11 months and not 12 months is the reason I was rejected. I say to them can you not just put in a pre condition that I can't drawdown until 12 months? They say no, come back when you are with you existing bank for 12 months and we will look at the application. Do I have any grounds for a complaint here? For me to wait until 12 months means that I revert on to a higher variable mortgage for at least 6 weeks while I am going through the mortgage process.

It's just mad, one would wish someone in the mortgage department would have an ounce of cop on.
 

PolkaDot

Frequent Poster
Messages
342
Well they may be of the view that you will do the same to them in 12 months (or less) and declined using that as the reason.
Yeh but they seem to have implied they will consider the application in a month’s time when 12 months with the lender. That is very frustrating and lacking a bit of cop on from the bank!

@imalwayshappy do you mind telling us which bank this is? Could be useful for others to know.
 

imalwayshappy

Registered User
Messages
95
Well they may be of the view that you will do the same to them in 12 months (or less) and declined using that as the reason.
I wouldn't imagine so, as that reason would not hold up in a complaint situation to the central bank. A bank can only refuse your application on the information provided to them and if it falls outside their credit policy and they told me its because I am not with my lender for 12 months. All Bank's take on risk when they lend, if an underwriter said to me that I have refused a mortgage application of someone because I believe they might move mortgage in 12 months time I would most likely show him the door... It's up there with I'm not going to work today because I am afraid of being killed in a car accident.
 

imalwayshappy

Registered User
Messages
95
Yeh but they seem to have implied they will consider the application in a month’s time when 12 months with the lender. That is very frustrating and lacking a bit of cop on from the bank!

@imalwayshappy do you mind telling us which bank this is? Could be useful for others to know.
I would rather not say on a public forum but send me a PM and i will tell you. :)
 

shweeney

Frequent Poster
Messages
295
there are people on this forum who have switched 2 or 3 times in quick succession to take advantage of cashback offers so this seems strange, though I suppose they were all approved based on the existing mortgage.
 

renter45

Frequent Poster
Messages
107
I had that issue with EBS. Spoke to guy over phone told him mortgage was up in 3 months and wanted to start process. Did the mountain of paperwork only for underwriters to say I wasn't with provider 12 months. I produced paperwork for 4 years with the previous previous lender but it didn;t make any difference. Went with UB in the end due to 2.3%, hassle free with them and will stick with them.
 

imalwayshappy

Registered User
Messages
95
@Brendan Burgess

Brendan when you are next doing media is there any chance you can highlight the nonsense that is happening with the Banks in relation to switching mortgages? The issues I am having are as follows:

1. AIB are taking 5 weeks to process an initial application by the time its assigned to a case manager the statements are out of date and they want new statements (although everything was up to date at the initial application).
2. This having to be with you Bank 12 months nonsense. I understand if that's the policy but some lenders won't engage with you until you are with your Bank for 12 months which makes it impossible to get value. As a result of this nonsense I am now moving on to a variable rate of 4.2% from 2.9% for c. 2 to 3 months because banks wont engage earlier.

Just my thoughts.
 

imalwayshappy

Registered User
Messages
95
Why do Banks make it so difficult to switch mortgage. I'm on a fixed rate due to expire in 1 month so I said to myself I will change provider for a lower rate and start the ball rolling so I will be in a position to move when my fixed rate is up. After sending in the mountain of paper work I get a response "declined". I say that's strange because on paper i'm very good. The logical person would suggest that maybe it was an issue with my CCR or ICB but no.

I am with my lender 11 months and not 12 months is the reason I was rejected. I say to them can you not just put in a pre condition that I can't drawdown until 12 months? They say no, come back when you are with you existing bank for 12 months and we will look at the application. Do I have any grounds for a complaint here? For me to wait until 12 months means that I revert on to a higher variable mortgage for at least 6 weeks while I am going through the mortgage process.

It's just mad, one would wish someone in the mortgage department would have an ounce of cop on.
Hi All,

By way of update. This Bank has now rejected my application as a result of my "switching history" only. I wonder how the Ombudsman would react to this case?. From looking at the complaint procedure they aim to address it within 40 business days which to be fair is useless to me as I am already paying a higher variable rate with my current bank. Any thoughts on whether I should pursue it or not?
 

imalwayshappy

Registered User
Messages
95
They don't want your business because they know what you are planning. Move on.
How do they know what I am planning? They are making an assumption and basing their decision on that. I have put in a complaint with a view to raising it with the ombudsman. I don't believe the ombudsman would agree with their finding (I could be wrong). The way I see it is Bank rejects customer based on customers history of switching lenders to avail of of better rates. If they had said its outside credit policy to lend to switchers who have moved in the last 3 years or something I could potentially buy that but we will see what happens.
 

bluecabbage

Registered User
Messages
10
How do they know what I am planning? They are making an assumption and basing their decision on that. I have put in a complaint with a view to raising it with the ombudsman. I don't believe the ombudsman would agree with their finding (I could be wrong). The way I see it is Bank rejects customer based on customers history of switching lenders to avail of of better rates. If they had said its outside credit policy to lend to switchers who have moved in the last 3 years or something I could potentially buy that but we will see what happens.
Could you send me the Bank name privately? I'm in the process of switching and wondering will this effect me.
 

misemoi

Frequent Poster
Messages
196
I am surprised to see this happening. I believe that banks should not be rejecting on this basis, otherwise no-one would switch more than once. And clearly it is possible to do it more than once, as it should be. Does this mean they could also reject me from a switch if I show a history of overpaying, as that reduces my profitability to them? If you don't mind updating the outcome, I will be following with interest.
 

jim

Frequent Poster
Messages
572
Isnt the rule pretty clear, you need to be with yiur lender 12 months if you want to apply to switch. Whats the prob
 

misemoi

Frequent Poster
Messages
196
Hi All,

By way of update. This Bank has now rejected my application as a result of my "switching history" only. I wonder how the Ombudsman would react to this case?. From looking at the complaint procedure they aim to address it within 40 business days which to be fair is useless to me as I am already paying a higher variable rate with my current bank. Any thoughts on whether I should pursue it or not?
See above. They are declining because of switching history, not length of time with current lender. At this stage the OP should have passed 12 months.
 

PebbleBeach2020

Registered User
Messages
95
I would imagine it's in their T&C's somewhere.

Sure someone looking at you having switched five times in the last five years or whatever it is would say, he's heading off elsewhere, don't bother lending to him..

Imagine that fella Sean og on here having done multiple switches. Fair play to him. But someone somewhere in some bank at some point is going to say, come here stay away from that fella.

Like someone else said, the bank it's obliged to lend you money, do move on. You have done well out if the switching, but it's going to catch up with you at some point. You cannot be penalised in terms if the cashback if you have done all that. But crying foul when the bank turn you down cause of your switching history in my legal background is legit. It's not different to gambling account appearing or unexplained spending.
 

imalwayshappy

Registered User
Messages
95
I would imagine it's in their T&C's somewhere.

Sure someone looking at you having switched five times in the last five years or whatever it is would say, he's heading off elsewhere, don't bother lending to him..

Imagine that fella Sean og on here having done multiple switches. Fair play to him. But someone somewhere in some bank at some point is going to say, come here stay away from that fella.

Like someone else said, the bank it's obliged to lend you money, do move on. You have done well out if the switching, but it's going to catch up with you at some point. You cannot be penalised in terms if the cashback if you have done all that. But crying foul when the bank turn you down cause of your switching history in my legal background is legit. It's not different to gambling account appearing or unexplained spending.
All they need to do is be upfront with their customers. If they don't want switcher business then fine explain that to the customer and close the loop hole like EBS for example. They should have rejected my application at the outset and listed that as one of the reasons for decline... they didn't. They waited for my "appeal" and when they realized the first excuse wouldn't stand up they and rejected it on my switching history. Weeks of my time and their time have been wasted because of their inability to be upfront.

By rejecting people like myself or @Sean Og based on his switching history is akin to us having multiple loans in defaults. Eventually switchers wont be able to move mortgage ever again because no lender would touch us as customers. I can't see the Central Bank allowing that to happen when they actively encourage switching mortgages.
 

imalwayshappy

Registered User
Messages
95
I am surprised to see this happening. I believe that banks should not be rejecting on this basis, otherwise no-one would switch more than once. And clearly it is possible to do it more than once, as it should be. Does this mean they could also reject me from a switch if I show a history of overpaying, as that reduces my profitability to them? If you don't mind updating the outcome, I will be following with interest.
Will do
 
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