How to Boost your Mortgage Chances

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Is this a good time to buy? And if it is, how do you boost  your chances of securing that first mortgage? Finance expert Sinead Ryan has some advice.

It can sometimes feel as if first-time buyers are getting more than their fair share of support. With both the Central Bank and the taxpayer funding their effort to buy, it is the trader-uppers who are losing out (see panel, page 2).

Now, with housing minister Eoghan Murphy chucking his tuppence-ha’penny-worth into the pot, the market is further skewing towards what very much looks like a vigorous policy to have people buy rather than rent.

The latest affordable-housing strategy (and there have been many, with varying degrees of success), announced in recent weeks, centres on the local authority becoming the lender of last resort.

Those on low incomes – shunned by the banks (at least two, to qualify) – are being handed a lifeline in the form of a fixed-rate loan for the term of the mortgage. At 2pc a year, this is in line with European lenders and a third cheaper than the cheapest retailer here. However, it is at the sacrifice of loan-to-income ratios, which for banks are set at 3.5 times income.

With the plan still short on details, it raises serious questions about why the State wants to give a leg-up to sub-prime borrowers. Anyone spending 35pc of their income on a mortgage, or who has already been refused, for good reason, by a lender that stress tests into the future, should probably be a renter.

Above this income bracket, however, there’s a consensus that renting is “dead money”; better to buy, put the first step on the dysfunctional property ladder and try to keep climbing without falling off.

Dr Ronan Lyons, economist at TCD and author of the Daft.ie reports, says renting is almost always more expensive than buying. In West Dublin, for example, the average rent on a three-bed house is €1,545 a month, but even at high interest rates (4.3pc a month), buying it will only set you back €1,126.

Likewise in Dublin 7, the rent on a two-bed town house would be €1,594, the purchase price €1,071 a month.

For many, and particularly for first-timers, buying is easier said than done. So do the figures stack up for those wanting to buy now – and if so, what can you do to make that first step a little easier?

Dr John McCartney, an economist with Savills, says: “You have house price inflation running at 12pc a year. Though I think this will moderate, it’s still well above inflation. Practical hurdles are three-fold: the deposit, whether you can find a house, and whether you can afford to buy in the place you like renting in. If all that is met, I would say do it.”

Even with the deposit ready, finding a house can be impossible. “We are still very much under-supplied,” says McCartney.

“I expect that to continue for another four years, even though it’s in the process of being rectified. A lot hangs on the outlook for the rate of rental increases. These were stabilising but in Q3 of 2017 took a hike, up 9.9pc in Dublin and 9.2pc outside, which was a bit of a surprise.”

Despite some ominous rumblings from the European Central Bank about interest rate rises, McCartney says this is nothing to worry about in the short term.

“Banks already stress test at 2pc above prevailing rates. The ECB has already signalled it will keep rates at their current levels until the quantitative easing programme has finished – which is September and for some period after that.”

But a reducing retail rate has been hampered by gimmicks like cash-back offers, cut-price insurance or free banking.

The Central Bank’s rather belated view is that these distort the market, especially for first-time buyers. People make short-term decisions that may not be in their best interest over the long term of a mortgage – so an immediate 2pc cash-back offer then paying over-the-odds interest rates for 30 years, makes little sense. But those desperate to get on the property ladder and grab a hold can be easily swayed. Fianna Fail’s Michael McGrath is planning a bill to outlaw these inducements, but a previous one to cap interest rates met its demise.

Fixed or Variable Rate?

To fix or not to fix? The question may not have exercised Shakespeare, but it is very much in the minds of buyers.

According to the Central Bank, fixed rates (FR) accounted for 56pc of new mortgages in the last three months of 2017.

Traditionally FRs were higher than standard variables (SVR) – a lender’s cushion in case rates hiked during the term.

However, with money for nothing – literally, lenders are borrowing centrally at 0pc – this has resulted in “locking-in” borrowers instead, so attractive FRs are all the rage. But they are still double what Europeans are paying. The average SVR is 3.25pc, while in the EU it’s 1.83pc.

McCartney says this can be explained: “Our interest rates are elevated for a reason. SVRs are subsidising trackers, and there is a huge difficulty in banks getting hold of assets if a loan defaults, so it’s factored into the price. Rates on secured assets are always lower than unsecured ones, but with mortgages, in practice, it is very hard to repossess.”

Joey Sheahan, head of credit at MyMortgages.ie, says first-time buyers can get a head start by keeping their nose clean financially – starting at least three months out, six months to be sure.

“You might only get one bite at the cherry with a lender,” he says, “so it’s crucial you put your best foot forward. Before they will give consideration to a mortgage application, a bank will look at the applicant’s credit history and recent banking history. Ultimately what they are looking for is a capacity to repay, on the evidence of past behaviour.

There are a number of red flags that will put a lender off, in part or perhaps in full; applicants must ensure these are not raised on their application.

These include overdrafts – authorised or otherwise, online gambling, cash advances on credit cards, even on holidays, non-documentation of rent, erratic or irregular saving or spending patterns.”

Source: https://www.independent.ie/life/home-garden/homes/sinead-ryan-how-to-boost-your-mortgage-chances-36562996.html

If you are interested in switcher mortgages and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie  in Cork  +353 21 4277037  or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland.


 

 

Banks are lending, without a doubt. But they are also applying rigorous credit assessments and approval processes before saying yes to any mortgage applicant.

Applying for a mortgage is a big undertaking – and one which needs to start months before the application forms are even looked at. You might only get one bite at the cherry with a lender so it’s crucial you put your best foot forward.

We would advise anyone who thinks they might be in a position to take their first steps onto the property ladder in 2018 to begin the prep work at least 3, but ideally 6, months out.

Preparation is imperative before you approach any lender. Taking the time to speak with an expert who can tell you what you need to do is an invaluable exercise and one which will stand to you throughout the process.

Before they will give any consideration to a mortgage application, a bank will first look the applicant’s credit history and their recent banking history. Ultimately, what they are looking for is a capacity to repay any loan tendered and a propensity to do so – as evidenced by past behaviour.

There are a number of “red flags” that will put a lender off in part, or perhaps, in full – any applicant must ensure that these are not raised on their application. “Red flags” might include:

  • Overdrafts – authorised or otherwise
  • On line gambling referred to on your bank/credit card statements
  • Cash advances on credit cards, even on holidays
  • Non-documentation of regular payments such as rent
  • An irregular savings pattern
  • Erratic spending patterns
  • Poor credit rating

Steps applicants can take to boost their chances:

  • Rent: Ensure this is paid through your bank account as bank will not accept this as proven repayment ability unless it is evidenced on your bank statement
  • Overdrafts: Even if you have an approved overdraft facility, it is better not to use it on a regular basis
  • Credit cards: Ensure balances are cleared each month. Aside from their portraying a better picture of the applicant, this will save interest as some credit card companies charge up to 18%
  • Loans: Ensure all monthly repayments are fully up to date
  • Savings: Transfer your savings into one account and save a regular amount each month – do not make any withdrawals from this dedicated savings account

Other considerations:

  • Deposit: You do not need to have all of your deposit before you apply. Once you have confirmation that a gift is available, that will suffice for Approval in Principle
  • Employment: Being in permanent employment is often a plus. But applicants will be reviewed on a case by case basis. If you are self-employed then you must ensure that have all of your accounts fully up to date and all relevant returns filed with Revenue. Contract workers should include a copy of their CV as well as your last 3 p60s
  • Overseas buyers will need to request a copy of their credit history from the country in which they currently reside

You will need the following to ensure your application is complete:

  • Photo Identification
  • P60 for last year
  • Pay Slips – 6 most recent
  • Certificate of Income – to be completed & stamped by employer
  • Current Account Statements – last 6 months
  • Savings Account Statements – last 6 months
  • Credit Card Statements – last 6 months
  • Loan / Mortgage Statements – last 12 months

 

Source: https://www.rollercoaster.ie/Article/Stories/Top-Tips-for-Getting-a-Mortgage

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


 

MyMortgages.ie Dublin Cork Galway

 

Is this a good time to buy?  And if it is,  how do you boost your chances of securing that first mortgage?

Finance expert Sinead Ryan has some advice.

It can sometimes feel as if first-time buyers are getting more than their fair share of support. With both the Central Bank and the taxpayer funding their effort to buy, it is the trader-uppers who are losing out.

Now, with housing minister Eoghan Murphy chucking his tuppence-ha’penny-worth into the pot, the market is further skewing towards what very much looks like a vigorous policy to have people buy rather than rent.

The latest affordable-housing strategy (and there have been many with varying degrees of success), announced in recent weeks, centers on the local authority becoming the lender of the last report.

Those on low incomes – shunned by the banks (at least two, to qualify)  – are being handed a lifeline in the form of a fixed- rate loan for the term of the mortgage. . At 2pc a year, this is in line with European lenders and a third cheaper than the cheapest retailer here. However, it is at the sacrifice of loan-to-income ratios, which for banks are set at 3.5 times income.

With the plan still short on details, it raises serious questions about why the State wants to give a leg-up to sub-prime borrowers. Anyone spending 35% of their income on a mortgage, or who has already been refused, for good reason, by a lender that stress tests into the future, should probably be a renter.

Above this income bracket , however, there’s a consensus that renting is “dead money”;  better to buy, put the first step on the dysfunctional property ladder and try to keep climbing without falling off.

Dr Ronan Lyons, economist at TCD and author of the Daft.ie reports,  says renting is almost always more expensive than buying. In West Dublin, for example, the average rent on a three-bed house is $1,545 a month, but even at high interest rates (4.3pc a month), buying it will only set you back €1,126.  Likewise in Dublin 7, he rent on a two-bed town house would be €1,594, the purchase price €1,071 a month.

For many, and particularly for the  first timers, buying is easier said than done. So do the figures stack up for those wanting to buy now – and if so, what can you do to make that first step a little easier?

Dr John McCartney, an economist with Savills, says: “You have house price inflation running at 12pc a year. though I think this will moderate, it’s still well above inflation. Practical hurdles are three fold: the deposit, whether you can afford to buy in the place you like renting in. If all this is met, I would say do  it.

Even with the deposit ready, finding a house can be impossible. “We are still very much under-supplied,” says McCarthy.

“I expect that to continue for another four years, even though it’s in the process of being rectified. A lot hangs on the outlook for the rate of renal increases. These were stabilizing but in Q3 of 2017 took a hike, which was a bit of a surprise.”

Despite some ominous rumblings from the European Central Bank  about interest rate rise, McCarthy says this is nothing to worry about in the short term.

“Banks already stress test at 2pc above prevailing rates.  The ECB has already signaled it will keep rates at their current levels until the quantitative easing programme has finished – which is September and for some period after that.”

But a reducing retail rate has been hampered by gimmicks like the cash-back offers, cut-price insurance or free banking.

The Central Bank’s rather belated view is that these distort the market, especially for the first-time buyers. People make short-term decisions that may not be in their best interest over the long term of a mortgage – so an immediate 2pc cash-back offer then paying over-the -odds interest rates for 30 years, makes little sense. But those desperate  to get a hold can be easily swayed. Fianna Fail’s Michael McGrath is planning a bill to outlaw these inducements, but a previous one to cap interest rates met it’s demise.

FIXED VARIABLE RATE?

To fix or not to fix? The question may not have exercised Shakespeare, but it is very much in he minds of buyers.

According to the Central Bank, fixed rates (FR) accounted for 56pc of new mortgages in the last three months of 2017.

 

Traditionally FRs were higher than standard variables (SVR) – a lender’s cushion in case rates hiked during the term.

However, with money for nothing – literally, lenders, are borrowing centrally at 0%

This has resulted in “locking in” borrowers instead, so attractive FRs are all the arge. But they are still double what Europeans are paying. The average SVR is 3.25pc, while in the EU it’s 1.83pc.

McCarthy says this  can be explained: “Our interest rates are elevated for a reason. SVRs are subsidizing trackers, and there is a huge difficulty in banks getting hold of assets if a loan defaults, so it’s factored into the price. Rates on secured assets are always lower than unsecured ones, but with mortgages, in practice, it is very hard to repossess.”

Joey Sheahan, head of credit at MyMortgages.ie  says first time buyers can get a head start by keeping their nose clean financially – starting at least three months out,  six months to be sure.

“You might only get one bite at the cherry with a lender,” he says, “so it’s crucial you put your best foot forward. Before they will give consideration to a mortgage application, a bank will look at the applicant’s credit history. Ultimately what they are looking for is the capacity to repay, on the evidence of past behavior.

There are a number of red flags that will put a lender off, in part or perhaps in full: applicants must ensure these are not raised on their application.

These include overdrafts – authorized or otherwise, online gambling, cash advances on credit cards, even on holidays, non-documentation of rent, erratic or irregular saving or spending patterns.”

 

 

Source: Sunday Independent 04/02/2018

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 


 

MyMortgages.ie Dublin Cork GalwayWill new legislation affect whether you can switch mortgage provider – and how much can you save if you do? Ciara Leahy finds out.

Here, on the consumer pages of Irish Country Living, we frequently highlight the benefits of switching. New customers get great deals and loyalty is rarely valued, whether we are talking about gas and electricity or TV and phone packages.

Switching mortgages is a bit more complex, but the mindset of switching must be having an impact on consumers, as experts at MyMortgages.ie have reported a flurry of activity in the mortgage switcher market since the beginning of the year. This is on the back of a busy 2017 too.

In the first half of last year, 1,319 people switched or remortgaged. It is expected this number will grow to at least 1,500 in the first six months of this year, if not more.

Joey Sheahan, head of credit at MyMortgages.ie, says: “We have experienced a three-fold increase in the volume of enquiries received since 2 January 2018 from mortgage holders all over the country wondering if they might be eligible to switch lender and avail of cheaper rates.”

The media highlighting savings has been credited as one of the reasons behind this, as well as the fact 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 them.

“Changes in the way lenders operate have meant that many only charge a very small, if any, breakout fee from fixed-rate mortgages, so what was once a significant monetary hurdle to switching is now obsolete, in many cases.”

However, there are rumblings of changes to the legislation, with predictions that Fianna Fáil will ban bank incentives to switch, leading to a race to switch.

So how much can you really save?

Mary and John O’Keeffe have 28 years left in their mortgage. They have €390,000 outstanding, at a loan-to-value rate of <80%.

  • Option 1: Keep existing mortgage
  • At a rate of 4% on a variable rate, the couple are paying €1,931.
  • Option 2: Switch mortgages
  • By switching to a four-year fixed rate of 2.6%, they reduce their monthly payments by nearly €300, meaning they pay €1,635 a month.

Over the remaining term of their mortgage, that is a saving of €99,000.

Time to do your homework on how much you can save. CL

Source: https://www.farmersjournal.ie/consumer-how-much-could-you-save-by-switching-your-mortage-339842

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


MyMortgages.ie Dublin Galway Cork

 

Experts at MyMortgages.ie have reported a flurry of activity in the mortgage switcher market since the beginning of the year.  The brokers forecast the switcher market alone will experience double digit growth in the first 6 months of the year, as an increasing number of mortgage holders learn of the option which could potentially save them anywhere in he region of €311 per month and €112k over the lifetime(1) of an average €350k mortgage.

Joey Sheahan, head of Credit at MyMortgages.ie,  believes a number of factors have led to the influx in enquires they have experience in the last two weeks.

“We have experienced a three-fold increase in the volume of enquiries received since January 2nd from mortgage holders all over the country wondering if they might be eligible to switch lender and avail of cheaper rates. We put this down to a number of factors.

“As a results 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 viable option for them.”

Experts at MyMortgages.ie predict that recent proposals put forward by Fianna Fail to ban bank incentives to switch will lead to even greater level of activity as people try to “get in” before such legislation is introduced.

Source: Dublin Gazette 25/01/2018

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


 

 

There has been a surge in people switching their mortgages since the beginning of the year, it is claimed.

The company MyMortgages.ie claims that it has had an influx of enquires in the last two weeks by more people who want to switch.

An estimated 9,800 mortgage-holders in Donegal could make the switch, according to the company.

Its figures claim that mortgage switching could save Donegal homeowners anywhere between €1,200 and €3,600 a year.

Joey Sheahan, head of credit at MyMortgages.ie, said: “We have experienced a three-fold increase in the volume of enquiries received since January 2 from mortgage holders all over the country.

“They wondering if they might be eligible to switch lender and avail of cheaper rates.

“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 them.”

 

Source: https://www.donegalnow.com/news/nearly-10000-mortgage-holders-donegal-switch-lenders/204043#provider_moreover

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 


By Conall O Fatharta

 

As many as 2,000 mortgage holders may switch lender in the first six months of the year as brokers experience a surge in consumers looking to avail of cheaper rates.

It has predicted that switching will experience double-digit growth in the first six months of the year, as an increasing number of mortgage holders learn of the option which could potentially save them anywhere in the region of €311 per month and €112,000 over the lifetime of an average €350,000 mortgage.

A total of 1,319 people switched or re-mortgaged in the first half of 2017. However, the broker has forecast this number will grow to at least 1,500 — but possibly to 2,000 — during the first six months of 2018.

Figures from the Banking and Payments Federation of Ireland for the third quarter of 2017 show that just 777 borrowers switched or remortgaged during the period, although the numbers switching are up 15% on the year.

It outlined a sample case where a couple lowered their monthly repayments by €300 and saved interest of €99,000 over the remaining term of their mortgage.

Head of Credit at MyMortgages.ie Joey Sheahan said there were a number of factors that have led to the surge in inquiries they have experienced in the first few weeks of 2018.

“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 them.

“Towards the end of last year myself and others in the industry endeavoured to highlight the fact that more mortgage holders can and should switch lender to reduce their monthly payments.

“It was also revealed that changes in the way lenders operate have meant that many only charge a very small, if any, break out fee from fixed rate mortgages, so what was once a significant monetary hurdle to switching is now obsolete in many cases,” he said.

Mr Sheahan said recent proposals put forward by Fianna Fáil to ban bank incentives to switch will lead to an even greater level of activity as people try to “get in” before any such legislation is introduced.

“Currently the mainstream lenders are offering sizeable cash incentives to certain cohorts of the mortgage market to encourage them to move lenders.

“The merits of this are up for debate but Fianna Fáil are putting forward a proposal to ban these cashback offers.

“If accepted, the Bill could come into force by the summer, so we are going to see large swathes of people who might have, up until now, been on the “switching fence”, make moves to avail of these offers before they are taken off the table,” he said.

Meanwhile, Finance Minister Paschal Donohoe has launched the second phase of the Switch Your Bank campaign.

The campaign directs people to www.switchyourbank.ie, and encourages consumers to shop around for financial products and services.

Source: https://www.irishexaminer.com/ireland/surge-in-mortgage-holders-switching-466129.html

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


 

MyMortgages.ie Dublin Cork

 

Households are finally cottoning on – switching your mortgage can save you €100,000. Brokers MyMortgages.ie report a three-fold increase in switching and forecast double digits growth in the first half of 2018. One reason behind the rush is borrowers want to avail of cash incentives for switching in case they are banned, as Fianna Fail proposes. The brokerage firm cities one couple who had a €390,00  (LTV <80%) mortgage over 28 years at a variable rate of 4%. They switched to a four-year fixed rate of 2.6% and  lowered their repayments by €300 – saving themselves €99,000. You can save €311 per month and €112K over an average €350K mortgage, said Joey Sheahan, of MyMortgages.ie

 

Source: Mail On Sunday  21/01/2018

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


Mortgages gold rush on the cards as ‘cash-back’ deals could be banned

 

Christian McCashin

 

Fears that ‘cash-back’ mortgage offers will be banned this summer is expected to cause a surge of homeowners switching their mortgage.

Fianna Fáil is looking to ban the offers, which give borrowers a return of around 2% of the mortgage back in cash.

This would force the banks to compete on interest rates alone, which is seen as better value in the long term.

 

Fianna Fail’s spokesman for finance Micheal McGrath has proposed an amendment. Pic: Collins

The Variable Rate Mortgages Bill would give the Central Bank the power to limit interest rates on mortgages, although a warning by the Attorney General that it might not be constitutional will be looked at. However, Fianna Fáil finance spokesman Micheal McGrath has proposed an amendment to it banning mortgage cashback deals. The offers, where a bank hands over a percentage of the loan in cash on drawdown, have become increasingly popular and are used by banks to drive up their market share, without having to cut mortgage rates.

Bank of Ireland offers homebuyers and mortgage-switchers 2% back on their mortgage as cash, with another 1% available for the bank’s current-account holders.

The EBS, which is part of the AIB group, offers €2,000 back in cash, and Permanent TSB offers not just 2% cash back on the value of the mortgage, but also 2% of the monthly mortgage repayment back in cash every month.

Ulster Bank offers a flat payment of €1,500 towards legal fees. ‘This amount is fixed and will not change if your legal fees are higher or lower,’ it says.

Struggling homeowners’ campaigner David Hall, of the Irish Mortgage Holders’ Organisation, welcomed the proposal to scrap the cash-back offers. ‘Ultimately you’re paying for it. All of these things cost money, there’s no such thing as a free lunch in banking,’ he said. ‘You might get a couple of quid now but ultimately it’s being added on to the bottom line of variable rates, that’s paying for it.

‘So you’ll never get variable rates lower if you keep having these scams. By scrapping them they’ll compete on the straight-forward rate, there’s no misinterpretation, no sneaky language, very straight forward, you’re just going on straight, raw rates,’ he said.

 

Joey Sheahan, of MyMortgages. ie, believes a number of factors have led to a surge in enquiries in the past few weeks. ‘Currently the mainstream lenders are offering sizeable cash incentives to certain cohorts of the mortgage market to encourage them to move lenders,’ he said. ‘The merits of this are up for debate but Fianna Fáil is putting forward a proposal to ban these cash-back offers.

‘If accepted, the Bill could come into force by the summer, so we are going to see large swathes of people – who might have, up until now, been on the “switching fence” – make moves to avail of these offers before they are taken off the table.’ Brokers forecast the switcher market alone will experience double-digit growth in the first half of the year, as an increasing number of mortgage-holders learn of the option which could potentially save them anywhere in the region of €300 a month or €112,000 interest over the lifetime of a €350,000 mortgage, about a third of the loan’s value.

In the first half of last year 1,319 people switched or re-mortgaged but that is expected to grow to at least 1,500. That figure could go as high as 2,000 during the first six months of this year.

Switching and remortgaging saw the largest increase in transactions, up 44% on 12 months earlier, the most recent figures show, up from 309 in November 2016 to 445 in November last year, an extra 136 mortgages.

Mr Hall said mortgage-holders should take up the cash-back offers while still available but warned: ‘People should ensure that they benefit from it, that there’s nothing hidden, that there’s no disadvantage with the mortgage rate.

‘Also, all brokers should declare what commission they’re getting so the public understand that if you’re switching from Bank of Ireland to AIB and AIB are paying the broker €500 that you’re told that in advance.’

 

Source: https://extra.ie/2018/01/24/news/irish-news/mortgages-gold-rush-cash-back-deals-banned

 

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 

 

 


 

Experts at MyMortgages.ie have reported a flurry of activity in the mortgage switcher market since the beginning of the year.  The brokers forecast the switcher market alone will experience double digit growth in the first 6 months of the year, as an increasing number of mortgage holders learn of the option which could potentially save them anywhere in he region of €311 per month and €112k over the lifetime(1) of an average €350k mortgage.

Joey Sheahan, head of Credit at MyMortgages.ie,  believes a number of factors have led to the influx in enquires they have experience in the last two weeks.

“We have experienced a three-fold increase in the volume of enquiries received since January 2nd from mortgage holders all over the country wondering if they might be eligible to switch lender and avail of cheaper rates. We put this down to a number of factors.

“As a results 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 viable option for them.”

“Towards the end of year myself and others in the industry endeavoured to highlight the fact that more mortgage holders can and should switch lender to reduce their monthly payments. It was also revealed that changes in the way lenders operate have meant that many only charge a very small, if any, break out fee from fixed rate mortgage, so what was once a significant monetary hurdle to switching is now obsolete in many cases.

“1,319 people switched or re-mortgaged in the first half of 2017 and we expect this number to grow to at least 1,500 but could go as high as 2,000 during the first six months of 2018.”

Experts at MyMortgages.ie predict that recent proposals put forward by Fianna Fail to ban bank incentives to switch will lead to even greater level of activity as people try to “get in” before such legislation is introduced.

Sheahan went on to say: “Currently the mainstream lenders are offering sizable cash incentives to certain cohorts of the mortgage market top encourage them to move lender.

“The merits of his are up for debate but Fianna fail are putting forward a proposal to ban these cashback offers. If accepted, he Bill could come into force by he Summer, so we are going to see large swathes of people who might have, up until now, been on the “switching fence” make moves to avail of these offers before they are taken off the table.”

MyMortgages.ie have set out a sample case which saw mortgage holders save considerable sums by moving lender and reducing their rate.

Sample one: A couple with €390,000 (LTV <80%) outstanding over 28 years at a variable rate of 4% switched to a four year fixed rate of 2.6% which lowered their monthly repayments by €300  and saved interest of €99,000 over the remaining term.

“If this couple were to keep their monthly repayments at the same level as the higher interest rate, they could reduce the term of their mortgage by almost six years. We are seeing a lot of borrowers look at this option or a hydrid of reducing the monthly repayments together with the term reduction,” concluded Joey.

 

Source: Evening Echo  19/01/2018

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 

 

 


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