Remortgage when switching

[Alkers86]

Has anyone tried / considered the following approach:

• Say your current LTV is 60% ballpark and you're looking to switch mortgage;
• Get property valued (required anyway) and request new mortgage amount at 80% of new valuation;
• Request variable rate mortgage;
• Redeem cashback at 80% of value of property;
• Make large repayment on mortgage to bring the loan back to your original LTV

Am I missing anything?

E.g. current mortgage 200k outstanding on property worth 300k. Switch and remortgage for 250k, redeem cashback and then immediately pay back 50k off new mortgage, earning yourself an extra 1k in switching cashback.

 

[newirishman]

The bank will ask you what you need the additional money for. Unless you have a plan for renovations / extension / etc., it is a question how happy they would be to entertain this.
The times where you just get additional money to go on a holiday or buy a car or (hopefully!) over.
There might also be some T&C's connected to the cashback to put a lid on exactly these shenanigans.