Many of the mortgage lenders in Ireland are still offering incentives such as cashback mortgages to try and attract new customers.
Bank of Ireland has been giving up to 3% cashback with no upper limit for a while now – (2% when you drawdown and 1% after 5 years) It is available to all new mortgage customers including Buy to Let and switchers.
EBS also have a very similar cashback offer – which is 2% upfront and an extra 1% after five years. This offer is available to all new EBS customers, home buyers and mortgage switchers.
KBC will give €3000 to mortgage switchers only and €1500 towards legal fees for all new customers. (due to end June 2021)
PTSB also offers 2% cashback lump sum for all new customers and 2% off the monthly repayments back until 2027. Switchers need to have been with their current lender to at least 2 years. (Due to end 2022).
Ulster Bank offers €1500 towards legal fees for all new customers. (Due to end June 2021)
AIB give €2000 cashback for switchers.
The banks don’t have any clawback conditions on the cashback – so you are free to switch mortgage lender again as soon as you want.
Multiple Cashback Mortgages
It is possible to get several cashback mortgages one after another.
For example – you could move a €300,000 mortgage to PTSB followed by a switch to Bank of Ireland and then EBS and finally KBC.
The total cashback on these 4 switches would be
- PTSB €6000
- BOI €6000
- EBS €6000
- KBC €3000
A total of €21,000 cashback on a €300,000 mortgage.
With legal fees estimated at €5000 – the profit will be in the region of €16,000. If all the switches go smoothly it could all be done in less than a year.
All the cashback payments are tax-free.
On a €400,000 mortgage – the total cashback would be €27,000 – with an estimated profit of about €22,000
Obviously, on a smaller mortgage, the profit will not be as big.
It might need a few hours of effort and form filling – but lockdown could be a great time to do it. The financial rewards will far outweigh the time you have to put in. Even if it takes say 20 hours in total – and you get €16,000 – it’s not a bad hourly rate ! (€800 an hour).
- Get a solicitor and tell them your plans to make sure they are OK with doing it. They should charge a lower rate for multiple switches.
- Apply to all the lenders at the same time – the mortgage offers will be valid for at least 6 months.
- PTSB will require you to have been with your current lender for 2 years – so switch to them first if you are using them
- Make sure the final switch is to the lender with the best interest rate.
See the current Lowest Mortgage Rates here
- It is advised for all but the last switch to go for a variable interest rate. The rate might be higher – but you will not be on it for long. If you opt for a fixed rate there is always the chance that there could be an early repayment penalty.
You should use the same solicitor for all the switches – and tell them beforehand what you are planning to do and make sure they will co-operate. Some solicitors might not want to do it – but it is all completely legal. A solicitor should be able to give a reduced price for 3 or 4 switches in such a short timespan. We estimate legal and valuation fees should not cost more than €5000 for 4 switches.
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