Mortgage Cashback Offers - Existing Customers

Squall

Just doing the periodic review of the mortgage to see if its worth switching. Available rates have come down a good bit since we last switched (and I was holding out a bit as signs were they would come down over the summer which they have)

AIB (who we are currently with) brought their 5 year fixed green mortgage down to 2.35% (our LTV is around 70%) and are now offering cash back of 2K for switchers. KBC have a 3 year fixed rate of 2.3% and cashback of 3K (but would require we open a current account with them)

Has anyone ever managed to convince the bank to give cashback when you were an existing customer?

Switching would obviously be a hassle but for a slightly lower rate and cash back it could be worth it. Would happily stay with AIB if they would throw us the few quid when changing the rate. Ill make the argument anyway but would be good to know if anyone has tried and succeeded before

Islander13

Squall wrote: »

Just doing the periodic review of the mortgage to see if its worth switching. Available rates have come down a good bit since we last switched (and I was holding out a bit as signs were they would come down over the summer which they have)

AIB (who we are currently with) brought their 5 year fixed green mortgage down to 2.35% (our LTV is around 70%) and are now offering cash back of 2K for switchers. KBC have a 3 year fixed rate of 2.3% and cashback of 3K (but would require we open a current account with them)

Has anyone ever managed to convince the bank to give cashback when you were an existing customer?

Switching would obviously be a hassle but for a slightly lower rate and cash back it could be worth it. Would happily stay with AIB if they would throw us the few quid when changing the rate. Ill make the argument anyway but would be good to know if anyone has tried and succeeded before

Would be flabbergasted if any bank did this, even for a one off high value customer. They might tinker and give a slightly lower rate but that would be as good as I’d say they’d go

phormium

Extremely unlikely, branch targets would be to get new customers with the carrot of the cashback, it won't matter to them if another leaves by the back door, they don't see it that way.

Sure for years UB & FA were owned by same RBS yet they pinched loans back and forth paying out incentives each time, stupid stuff but it's the way banks work!

Henry Ford III

Is a mortgage cashback essentially additional long term borrowing?

Smee_Again

Henry Ford III wrote: »

Is a mortgage cashback essentially additional long term borrowing?

Only if the associated interest is higher than available elsewhere.

Henry Ford III

Smee_Again wrote: »

Only if the associated interest is higher than available elsewhere.

Who pays for it? Is it a present from the lender?

Zamboni

Squall wrote: »

Just doing the periodic review of the mortgage to see if its worth switching. Available rates have come down a good bit since we last switched (and I was holding out a bit as signs were they would come down over the summer which they have)

AIB (who we are currently with) brought their 5 year fixed green mortgage down to 2.35% (our LTV is around 70%) and are now offering cash back of 2K for switchers. KBC have a 3 year fixed rate of 2.3% and cashback of 3K (but would require we open a current account with them)

Has anyone ever managed to convince the bank to give cashback when you were an existing customer?

Switching would obviously be a hassle but for a slightly lower rate and cash back it could be worth it. Would happily stay with AIB if they would throw us the few quid when changing the rate. Ill make the argument anyway but would be good to know if anyone has tried and succeeded before

Nope you'll have to walk.
If you have steady employment, switch often. It is an administrative hassle but the more often you do it, the easier it becomes.
Cash back offers are a tax free windfall so keep doing them until the cash back(less switching costs) no longer justifies your effort

Jim2007

phormium wrote: »

Extremely unlikely, branch targets would be to get new customers with the carrot of the cashback, it won't matter to them if another leaves by the back door, they don't see it that way.

Well if they did it for one customer, they'd have to do it for all customers and loose big on it.

Smee_Again

Henry Ford III wrote: »

Who pays for it? Is it a present from the lender?

The borrower pays for it, but using KBC as an example until Avant Money entered the market KBC had the lowest fixed rate and offered €3K cashback. In that case it's not really increased borrowing, in practical terms, as there's no better option. For BOI at 3% plus 3% cashback it is.

Trish56

Haven Mortgages Ltd who are the broker arm of AIB currently offer 5k cash back for switchers who borrow over 300k on a fixed rate and who drawdown the mortgage up to 31st December 2021. This cash back is also available to First Time Buyers, and Movers.

Squall wrote: »

Just doing the periodic review of the mortgage to see if its worth switching. Available rates have come down a good bit since we last switched (and I was holding out a bit as signs were they would come down over the summer which they have)

AIB (who we are currently with) brought their 5 year fixed green mortgage down to 2.35% (our LTV is around 70%) and are now offering cash back of 2K for switchers. KBC have a 3 year fixed rate of 2.3% and cashback of 3K (but would require we open a current account with them)

Has anyone ever managed to convince the bank to give cashback when you were an existing customer?

Switching would obviously be a hassle but for a slightly lower rate and cash back it could be worth it. Would happily stay with AIB if they would throw us the few quid when changing the rate. Ill make the argument anyway but would be good to know if anyone has tried and succeeded before

Squall

Figured the answer would be no alright

Might try and argue for the slightly lower rate of 2.3 with AIB. Getting the lower rate with KBC would require a full switch to banking with them (although I could just have my salary paid there and transfer everything bar the mortgage out each month). Looks like with their extra current account that would mean the account is fee free

The AIB rate is 5 years fixed versus 3 years with KBC. Not sure which of those I prefer as it is nice to be able to switch regularly.

Will have to have a think about it

Henry Ford III

Would getting your cash back and then recrediting it against the mortgage be the most efficient idea?

Squall

Henry Ford III wrote: »

Would getting your cash back and then recrediting it against the mortgage be the most efficient idea?

Yes very possibly. But then I have never looked into overpaying when on a fixed rate. Presume its not like standard fixed rate loan where over / early payment is penalised. Cashback would be a small part of the mortgage to be fair