Opportunity: If you are in a position to switch your mortgage there are significant savings to be made. Should you be on a variable rate (as opposed to a tracker or fixed rate) and your loan to value has fallen below 80%, due to increases in property prices and a reduction in the amount borrowed, then the time may be right for you to consider switching.
Recent Example: An outstanding mortgage balance of €200,000 over 20 years at a rate of 4.3% pa. Switching to the most competitive rate in the market place could secure a rate of 3.4% pa. In this example, switching the mortgage would result in a saving of over €90 per month or a staggering €22,560 over the remaining life of the mortgage. Opting for a fixed rate could save you more.
How much will this cost? As always there are costs but the financial benefits far exceed the fees that you might expect to pay your Solicitor, Valuer or Broker while organising your Mortgage switch. As a matter of good practice, we will advise you of all fees in advance of any application being made. Some lenders are providing Cash Back offers to facilitate switching your mortgage. In many instances, the offer will defray the fee costs associated with switching your Mortgage. As is always the case, read the small print when contemplating such offers as there may be conditions attached. Our objective is to get the best option for you.
Suitability? Lenders will assess a mortgage switch in the same way as a new mortgage. You will have to provide all of the necessary supporting documentation ie, bank statements, P60, Payslips etc. for scrutiny. You need to have a satisfactory credit rating and ensure that your Mortgage does not exceed 80% of the current value of your house.
Are there additional risks? Financial Institutions are monitoring the market at all times. It is possible that your present lender could reduce their mortgage rates in the future. However given the competitive nature of the Mortgage market, it is possible that your new lender would follow the trend.
Next steps? A simple check will establish if you are ready for a switch. It costs nothing but it can save you a significant amount of money.
Call Belinda or Owen today on 071 919 4000.
Warning: If you do not keep up your repayments you may lose your home.