Which lenders discriminate against existing customers?

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Paul F

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Hi,

It seems that, over the last few years, more lenders are allowing their existing customers to switch to any rate that is offered to their new customers. (I know that you might have to pay a break fee for switching.) But are there any lenders that still don't allow this?

Also, if I think I am now in a lower LTV bracket than when I took out the mortgage, which lenders will accept my old house valuation without requiring me to get an updated one?

Thanks
 
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Hi Paul

Bank of Ireland, ptsb and EBS all offer cash back to new customers. They do not offer it to existing customers. So this means that existing customers are stuck with very high rates.

BoI allows existing customers to avail of the rates on offer to new customers, except, surprise surprise, the low rate offered to customers who don't avail of cash back!

ptsb reserves some rates for new customers only.

Brendan
 
Thanks Brendan.

That's interesting about the BOI high-value mortgage not being available to existing customers.

Anybody know how the different lenders treat requests to drop down to a lower LTV bracket? Do they make you get a full valuation first?
 
Paul F said:
Anybody know how the different lenders treat requests to drop down to a lower LTV bracket? Do they make you get a full valuation first?
Click to expand...

My experience when switching to KBC (from PTSB) and then UB ~ 18 months later, was that both wanted an up to date valuation. UB did arrange this and pay for it. With the switch to KBC, they gave me a list and I chose one and had to pay that person directly.

My understanding with KBC before I left them was that were I to go to one of their lower LTV rates, I would need a new valuation.
 
Re switching LTV bands, I understand that Ulster Bank run a calculation based on some index, and so long as the LTV you're claiming doesn't go outside that band, don't require an updated valuation.

KBC require an updated valuation to switch bands. Similarly AIB. With both you might not require a valuation if you've paid off a lump sum, and relying on original valuation.

I'm almost certain that PTSB require an updated valuation. They definitely did to switch between SVR and MVR.
 
HollowKnight said:
UB did arrange this and pay for it. With the switch to KBC, they gave me a list and I chose one and had to pay that person directly.
Click to expand...

BoI (2015) wanted an up-to-date valuation, paid for by me, from a list of valuers provided by them.

I think it was a drive-by valuation and seemed on the low side - I got the impression the valuer knew the parameters.
 
Thanks everybody for sharing your experiences. Between this and allowing big overpayments and capping break fees at 6 months' interest, UB seem very good. Let's hope they don't leave.
 
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