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Mortgage switch more than once?

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  • 23-05-2016 4:35pm
    #1
    mathie
    Registered Users Posts: 5,102 ✭✭✭


    Hi
    Is it possible to switch mortgage more than once?
    I was with AIB and just switched to BOI for their 2% cashback offer.
    Could I now switch again to PTSB who also do a 2% cashback offer?
    Thanks
    M


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    #2
    tinkerbell
    Registered Users Posts: 6,423 ✭✭✭tinkerbell


    You need to read the T&Cs when switching. With BOI, if you switch within 5 years of the 2% cash back offer, there is a penalty.


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    #3
    L1011
    Registered Users Posts: 68,904 ✭✭✭✭L1011


    In five years time, yes.

    These offers are an incredibly bad idea during a time of falling interest rates - which is why the bank offers them. You are now locked to BOI who are rather dear for a very long time.


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    #4
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    Does anyone know the extent of these penalties?

    For example, if you switch after 4 years, is the penalty is severe as if you tried to switch after 1 year? Basically, is it in any way proportional?


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    #5
    iainBB
    Registered Users Posts: 460 ✭✭iainBB


    SarahMollie wrote: »
    Does anyone know the extent of these penalties?

    For example, if you switch after 4 years, is the penalty is severe as if you tried to switch after 1 year? Basically, is it in any way proportional?

    In the T and C of your contractor


    Really bad idea to fix right now . I just a big reduction by ringing bank and asking


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    #6
    Loadedscream
    Registered Users Posts: 269 ✭✭Loadedscream


    SarahMollie wrote: »
    Does anyone know the extent of these penalties?

    For example, if you switch after 4 years, is the penalty is severe as if you tried to switch after 1 year? Basically, is it in any way proportional?

    All 2% is repayable if you refinance within 5yrs. Not proportional. As the other poster said you need to be comfortable with that if you are going with these offers.


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    #7
    aido79
    Registered Users Posts: 5,374 ✭✭✭aido79


    SarahMollie wrote: »
    Does anyone know the extent of these penalties?

    For example, if you switch after 4 years, is the penalty is severe as if you tried to switch after 1 year? Basically, is it in any way proportional?

    Have a read of this :

    http://themoneyadvisers.ie/bank-of-irelands-2-cashback-mortgage-offer-a-good-deal-or-a-marketing-tactic/

    Just from briefly looking over it it seems that if you switch mortgages again within the 5 years you have to pay back the full 2%.

    I'm not lecturing here but it never fails to amaze me how little people look into the terms and conditions of a mortgage considering the huge investment it is for most people.


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    #8
    SarahMollie
    Closed Accounts Posts: 2,843 ✭✭✭SarahMollie


    Will be interesting to see if other Lenders will be offering "we'll pay your legal fees if you switch to us" as soon as those 5 year periods start to finish up. I think they've been running that offer for well over a year now.

    Personally I took it, and I knew there'd be penalties to switch, although granted I didnt look too deeply at the mortgage payments.

    That said, if its going to cost me about €1700 to switch with all other things being equal, then I think I'd need the rates to be significantly lower than what I'm currently paying. Thats over 2 months mortgage payments in and of itself, so the savings would need to be quite good!

    I've always planned on hanging onto my current place for about 5 years (4 years to go) so I guess I'll worry about it then. Once I can switch, I'll definitely be shopping around.


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    #9
    loyatemu
    Registered Users Posts: 14,946 ✭✭✭✭loyatemu


    BOI and PTSB's 2% offers have a clawback within 5 years
    Ulster Banks 1500 legal fees offer has no clawback
    AIB's 2K, I don't know - it's only just been announced.


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    #10
    Brego888
    Registered Users Posts: 1,321 ✭✭✭Brego888


    What are the legal fees for in relation to switching mortgages?


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    #11
    L1011
    Registered Users Posts: 68,904 ✭✭✭✭L1011


    Brego888 wrote: »
    What are the legal fees for in relation to switching mortgages?

    Total fees would include the valuer, legal specific fees are the solicitors professional fee (which should be a lot lower than for a full purchase) and land registry search and registration fees. Might not be much change from 1500 depending on the value as some fees are value dependent.


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    #12
    loyatemu
    Registered Users Posts: 14,946 ✭✭✭✭loyatemu


    L1011 wrote: »
    Total fees would include the valuer, legal specific fees are the solicitors professional fee (which should be a lot lower than for a full purchase) and land registry search and registration fees. Might not be much change from 1500 depending on the value as some fees are value dependent.

    I'm in the process of switching, fees will be 1200 or so.


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