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offered cashback to redeem mortgage?
honey11
Posts: 3 Newbie
Hello, I've been offered a cashback lump sum by the Bank of Ireland if I redeem my Buy to let mortgage and go elsewhere by 31st March 2013. Just want to know has anyone else had this offer? Never heard of it before. Is it a scam?
Many thanks for any help.:)
Many thanks for any help.:)
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Comments
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Check what rate you are on. Probably a low rate tracker which canot be beaten elsewhere.
If you can get a mortgage elsewhere then do the sums. Make sure the reduction is worth losing the rate for.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Why would a large financial institution offer a 'scam'?0
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They are trying to get rid of higher risk / lower profit (or loss making) business.
They have to borrow to raise the funds to support your mortgage. If they can't, which is more than possible for a struggling Irish bank, they need to reduce their mortgage balances.
Making it worthwhile for you to go elsewhere is a way of achieving this.
GMS makes an astute point. If you're contractually entitled to a great rate by staying put, do the sums before accepting their offer.
It is possible that there's a win or you, a win for them and a win for a new lender here. But it's equally possible that doing nothing gives you the best result.
What have they offered?
How much do you owe?
What rate are you on, how long for and what guarantees does it have?0 -
Thanks very much for all your replies. I really appreciate your thoughts. I will compare new / old terms carefully to see what is best for me. Thanks again for your guidance on what to look at.:)0
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Some lenders have been keen to get rid of the higher risk borrowers in their book and offering cash incentives is a common approach.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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IIRC last offer was a waived ERP, £1,000 cash - but the borrower had to use L&C, or go direct to First Direct in some cases.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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To add to this, I called BoI today for an update on my product and elected to go through to L&C for a review. Ended up with an offer of a better rate from Skipton BS, NO fees at all (except ONLY £25 chaps) AND £2000 cashback. What a Christmas bonus!0
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I'm not up on the BTL side of things but on the residential side its been happening for ages if you remortgage through L&C and is ongoing until 31/03/2013 £1,000 for under £100,000 mortgages £2,000 for over £100,00 mortgages.0
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