Potential for 3 switches in the first 4 years of our mortgage?

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Purchased our home (FTB's, new house purchase) in September 2014, went with KBC on the basis that they had the best rate at that time for us, LTV 80% rate 3.79%. Didn't grasp the whole new/existing customer policy with KBC at that time hence went with them, otherwise would have went with AIB who had also approved us for the amount required.

Roll forward to November 2015 and switched to Ulster Bank which now leaves us on their Loyalty Discounted Variable mortgage product paying 3.10% (4.30% SVR - 1.20%).

Roll forward to November 2016 and have been provisionally approved by EBS for their >50% - <=80% product at 3.5% thereby increasing our monthly repayment by around €100 while maintaining a similar term but at the same time availing of around €9K cash back based on their 2% cash back offer.

Roll forward to sometime in 2017, assume we are then with EBS, if EBS rates continue to be higher then we could move back to original provider KBC (new/existing customer policy has been removed) or AIB, should either approve us.

My question is, fully understanding that our personal circumstances can change thus effecting our future mortgage provider options, are we foolish to increase our interest rate in the short term to avail of the 2% cash back from EBS? Or have I missed anything else here?

Thanks.
 
So you have a mortgage of €450k
You will get back €9,000 less switching costs of €1,500 or €7,500.

You will pay €1,800 a year in extra interest (€450k @0.4%).

You will be ahead for the first four years, assuming the differential remains the same.

My gut feel is that UB is more likely to cut rates than EBS, as EBS is pitching for new business based on cash back.

It's also possible that lenders may shun you if they know you have moved so often.

But it's probably worth the risk, as it's a fair saving.

Brendan
 
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