Mortgage Switching

Why Switch Your Mortgage?

There are a number of reasons why people switch their mortgage. But most of all it is to reduce the expense of their mortgage or to make improvements to their home or their lifestyle. Like any financial product, be it life cover or a pension, it makes sense to review the competitiveness every few years to ensure you have the most appropriate financial product based on your current circumstances. Mortgages are no different and this can make a big difference.

Switching can save you money

Approveprobably the most common reason for switching is you are on a high mortgage interest rate compared to other mortgages available on the market. If you consider mortgages are generally for much larger balances than car loans or personal loans, a 1% reduction in the interest rate would result in a very significant saving. For example, a 1% interest rate reduction on a mortgage of €250,000 could reduce your annual interest bill by €2,500, over 20 years this would save €50,000 in interest, a considerable saving[1].

Some lenders are offering cashback deals for mortgage switching up to 2% of the mortgage balance. Mortgage switching has become more common in recent years with lenders starting to offer more deals and favourable rates. Some lenders are offering cash incentives towards the cost of switching which has made switching easier. This can be hugely significant depending on the amount borrowed. Some mortgage applicants are taking advantage of incentives which pay up to €3,000 towards legal and valuation fees. The mortgage base rate as set by the European Central Bank (“ECB”) is historically low and a good mortgage product at a competitive interest rate can really impact on the level of capital reduction on your mortgage.   

You don’t need to move

Calculate An attractive feature of switching is you do not have the added burden of purchasing a home or moving house. You are simply changing your mortgage lender to another one and often for a better rate and more suitable terms. Many people switch to carry out home improvements or renovate their home while getting a better interest rate.

Therefore, it is very beneficial to use a broker to assess a number of lenders at the same time with the view of getting you the best deal. The important thing is to be comfortable with your level of borrowings and the monthly repayments.

Brindle will do the heavy lifting

Offer One of our Mortgage Advisers will do all the research for you and match you with a suitable mortgage based on the level of equity in your home, your personal circumstances and the amount you need to borrow. We do not charge you any fees for arranging your mortgage and we keep things simple.

We will advise you on what documentation you need. We will provide advice on any potential issues we identify with your documentation and what you need to do to correct the issue. We then structure your application and present it to the most appropriate lender. Once lender approval is obtained –  we manage the process and keep things moving until your new mortgage ready for drawdown and cheque issue. This frees up your time to focus on other things like your house plans, your family life or work commitments.

What about the legals?

Close You will need a solicitor to switch just like any other mortgage but we work closely with your solicitor to make the process as seamless as possible. Some lenders will even contribute to your legal fees and this makes the cost of switching far less expensive as legal fees are generally the biggest expense. You will require an updated valuation but this can be arranged easily by us without any fuss.

Getting in touch

Call an Adviser today on 01 480 4414 or request a call back. Alternatively, you can apply online and an Adviser will contact you. We have locations in Dublin, Limerick and Clare and we offer a nationwide service.

Warning: If you do not keep up your payments you may lose your home
Warning: The cost of your monthly repayments may increase

Warning: This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term

[1] This calculation is for illustration purposes only and is based on a full interest only mortgage without any reduction in the capital balance over the term.