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Bank Of Ireland - BOI Mortgage 2% Clawback - Gone?

  • 30-08-2016 9:09am
    #1
    craic90
    Registered Users, Registered Users 2 Posts: 44 ✭


    Hi,

    A few months ago as first time buyers we took out a mortgage with BOI and got the 2% back. They told us that if we pay off or switch within 5 years that we would have to pay that back.

    My understanding from what I see reported in the media is that this has been overturned, and 6 months in, we would be free to switch to *any* of the other providers who are offering much more competitive rates.

    Is this accurate?

    Thanks


Comments

  • #2
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    Look at the conditions on your Mortgage Offer letter. This is what you signed up to. They are bringing out a new cash back offer 2% on draw down and a further 1% 5 years later I presume trying to hold onto you longer and more than likely going to be tied in for longer to qualify for the extra 1%.

    Of course all of the above is at the expense of their existing customers who are still paying 4.50% variable rate despite numerous requests from Government ministers to reduce their variable rate.


  • #3
    daveharnett
    Registered Users, Registered Users 2 Posts: 2,567 ✭✭✭daveharnett


    craic90 wrote: »
    They told us that if we pay off or switch within 5 years that we would have to pay that back.
    They told you they would "reserve the right to seek repayment". It turns out that (apparently) according to the Consumer Credit Act, they have no such right.

    In your shoes, I'd be reading the Act very carefully, jumping ship, and holding that 2% in cash for a while, just in case a court decides we're all wrong and their threat of a clawback is legally enforcable.


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