Switching your mortgage could save you money

Experts at MyMortgages.ie have reported a flurry of activity in the mortgage switcher market since the beginning of the year.

Figures from MyMortgages.ie have revealed that on “average” mortgages throughout the country, anywhere between €40,000 and €100,000 could be saved by moving to another lender.

Joey Sheahan of MyMortgages.ie believes a number of factors that have led to the influx in enquires they have experienced in the last two weeks,

“We put this down to a number of factors. As a result of recent media reports, anecdotal evidence suggests that an increasing number of mortgage holders seem to now be aware of the fact that switching lenders to avail of a better rate might be a viable option for the,” he said.

“With the still curtailed new house building, banks are struggling to hit their mortgage targets and so are turning to the switching market. This is creating an opportunity for many homeowners to make considerably savings. There are 10,325 owner-occupied mortgaged homes in Westmeath and we would guestimate that anywhere between 60 to 70 per cent of these could be eligible to switch lender to avail of cheaper rates.”

Who can switch and how

Mr Sheahan advised: “If you are a fixed or variable rate mortgage customer you are definitely of interest to other mortgage lenders, which means you could potentially save thousands of Euro over the remaining term of your mortgage by switching mortgage provider. Due to the current low cost of funds available for banks, in many cases there is no early breakage fee for exiting a fixed rate. You just have to call your bank to check this.” MyMortgages.ie have set out a three-step process to get people on the path to switching:

Contact your lender and confirm your rate of interest, balance outstanding and term remaining on the mortgage.

Ask your lender if the variable rate you are on the best available to you and what fixed rate options are available to you as an existing customer.

Then contact a qualified and professional independent mortgage advisor and ask them to compare your existing mortgage terms to what is available to you in the market. The more equity you have in your home the better the new terms likely to be available to you, but you can switch even if your loan is 90 per cent of your value.

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