Recent research from the Central Bank reveals that three in every five of eligible mortgage holders are in the position to save up to €1,000 within the first year if they were to switch mortgage providers, and even as much as €10,000 over the remaining term of their loan if they changed mortgage provider for a better mortgage rate.
A re-mortgage or a switcher mortgage, for those who are unsure, is moving from one mortgage provider to another, for better rates, terms or both. A mortgage broker can explore all options and save you time.
I believe that there is an “in-built culture of not switching” in Irish people about changing their mortgage situation. Change is a hassle. However people have a great ability to switch car insurance or perhaps house insurance for the better price, but this doesn’t transfer to switching mortgages. Switching activity remains low relative to the outstanding pool of eligible switchers, and stood at less than 5% in the second half of 2019.
Let’s look at one example of how you could save.
Mortgage savings of €215 a month or just over €2,580 over the year is based on someone who is currently on a 4% rate on their mortgage who switches a €250,000 mortgage to, for example. KBC’s three-year 2.30% fixed rate and who has at least 20% equity in their home (i.e. a house worth €315k or higher). Savings could be more or less depending on the size of the mortgage and the person’s current rate. In this example, the customer would also receive €3,000 cashback from KBC for switching. So there are options.
Mortgage savings can also be made by switching terms, perhaps moving from a 30 year term to 25 years. Overall you could reduce the amount of interest you pay during the lifespan of your mortgage. .
So how do you switch? What is the process? If you make a straight switch with no additional funding it is easy. The first step is to contact us and tell us about your current situation. We will take it from there. Our advice can save money and time.
Here is what we need to provide us with to assess whether you can get a better mortgage::
- Your most recent mortgage statement
- Your income details including, 2 recent payslips, a copy of your most recent EDS and a salary cert from your employer if you are a PAYE applicant.
- Last 6 months bank statements
Once we have this information, we can calculate what savings can be made to switch your mortgage. If you are already on a good deal with your current provider then we will confirm this too.
Want to save money, speak to Mortgage Plus and we can take the hassle from the process.