ptsb won't give me cash back

H

Hegocork

Registered User
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Hi all
I appreciate im in a good position compared to many but feel hard doneby by ptsb offer on my mortgage.
I cleared my mortgage before xmas with ptsb and now want to takeout a new mortgage to upgrade the house.
Ptsb say its an equity release and wont give me the 2% cash back ..
Now my view is that if i am compared to someone switching ,the risk is the same,the collateral is the same if not improved .i am a better bet as ive cleared my mortgage early and so proven record ,i have my current account and a savings account also with ptsb ,mentioned that id have to move them if i went else where but they didnt care.
I dont get this ,as far as i am concerned what i do with my mortgage money is my business after i draw it down ,seemingly ptsb only want me to give the money to a stranger who i buy a house from.
Am i going to have the same issues everywhere as looking on line today cant find a mortgage for someone in my position ,just equity release.isnt this discrimination of sorts
 
RedOnion said:
No.
The cashback is a marketing tool. They already have your business.

Try another bank to see if they'll lend to you, and give you the cashback. And then factor in your legal fees.
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But they dont have my mortgage business which is what i dont get .
If i take out a mortgage else where and then switch they will give it to me but if i apply directly they wont ....dont get it ..thanks for reply
 
The customer funds the cashback they receive through higher interest paid during the term, the worst customer they could get is the one who would pay them back early. Loosing the money made from interest rates.
Take out a mortgage with a company that charges lower rates such as AIB
 
The following is specially called out as not eligible for cash back offer:
"Equity release or home improvement mortgage loans"

If they already have charge on your house, there's no legal fees. If you go somewhere else, it'll cost you a grand or more in legal fees.

What you are getting is an equity release.
 
Thanks red onion but i think your missing my point.
The bank has no charge on my house,my mortgage is cleared and yes i need to use a solictitor again and have the same fees as a first time buyer.i know what the small print says and i know they are calling it an equity release but my question is ,what is the difference to the bank if im a first time buyer ,switcher or in my case want to put the mortgage money back into the house ?...nothing yet im treated differently .
You would think a safer customer like myself would be something they would fight for
 
Hi Heg

It is discrimination.

They have chosen to discriminate between buyers and switchers on the one hand and home improvement borrowers on the other hand.

They are perfectly entitled to make such discrimination.

AIB offers deals to switchers which they do not offer to First Time Buyers.

Lenders offer deals to new customers which they do not offer to existing customers.

All perfectly legal.

It might be annoying and it might be a market which another lender might want to exploit. But still it's all legal.

Brendan
 
Not your question obviously but why did you clear the mortgage only weeks ago to now take out a new one? If you had the savings to clear it why not use the savings for the home improvement. If that was not enough then you could have done a top up on the original mortgage and you would have had no legal fees.

Obviously there must be some reason why you took this route, maybe the amounts wouldn't work or something but it seems a strange move. I actually have very little left on my mortgage and could clear it tomorrow but I am hoping to build an extension so I have applied for a top up on the original mortgage. To me it would make no sense to clear the mortgage I have and then apply for a brand new one.

Relating to your actual query the bank can decide what policy it follows for the cash back and you are outside it, switch to another lender is the obvious answer and then get your own back by switching back to them and getting the money anyway :)
 
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Hi Monbretia

Good question but he might mean that it came to a natural end before Xmas.

Or it might be that he cleared it so that he could get the 2% cash back.

Some time ago when someone mentioned clearing their mortgage ahead of schedule, they were advised to reduce it to €1,000 but keep the term the same.

The advantage was that the lender would mind your title deeds and it would be easier to remortgage.

Brendan
 
Maybe, it could have meant that it just naturally finished.

Mine was due to clear ahead of schedule too due to overpayments and I had done exactly as mentioned and reduced the payments to very minimum as it is easier keep it in place if you want to top up or as you say get the deeds minded!
 
Hi lads
Yes mortgage just naturally cleared due to the over payments i had .
was supposed to move house last year but didnt happen and wife now decided to stay and renovate instead so thats why im in this position.i didnt think much about it at the time as it was a tracker and i knew the top up would be at full rate but never realised that being mortgage free was a dissadvantage
 
Hegocork said:
mortgage just naturally cleared due to the over payments i had .
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Hegocork said:
i didnt think much about it at the time as it was a tracker and i knew the top up would be at full rate
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So you overpaid a tracker and now want to borrow at full market rates?

I don't know how we can get the message across to people - Don't overpay your tracker if you think you might move or upgrade.

Brendan
 
Hi brendan
Thanks for reply .would i not have an argument under eu law similar to rebates which from what i gather doesnt allow dissimilar conditions to equivalent transactions to a customer/company...
Anyone got 5 million euros and 5 years to spare and ill take them on in brussels.lol
 
Why would someone clear a mortgage with ( presumably) sub 3.5% interest rate only to then take out a home improvement loan which is likely to be 6% minimum ?
 
Hegocork said:
Hi lads
Yes mortgage just naturally cleared due to the over payments i had .
was supposed to move house last year but didnt happen and wife now decided to stay and renovate instead so thats why im in this position.i didnt think much about it at the time as it was a tracker and i knew the top up would be at full rate but never realised that being mortgage free was a dissadvantage
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Have you been avidly following Sarenco ( of this parish) perhaps?
 
galway_blow_in said:
Why would someone clear a mortgage with ( presumably) sub 3.5% interest rate only to then take out a home improvement loan which is likely to be 6% minimum ?
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It's not an unsecured personal loan, but an equity release for the purpose of home improvement.
These weren't available for a few years, but the banks have started doing them again.
 
It's a brand new mortgage though unlike an equity release on an existing mortgage as a top up for home improvements. It would be at today's mortgage rates, same as buying a new house really paperwork and legal wise. Although if the vacate has not been done on the original mortgage yet could that be an advantage? I'm not a solicitor but if they bank still have the deeds and a charge on the property still could that be a benefit cost wise?
 
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