MORTGAGE brokers MyMortgages.ie have said that despite the Central Banks recent efforts to highlight the benefits of mortgage switching to consumers, the majority holders remain unaware of the potential savings that exist and of their eligibility to switch lenders.
Figures from MyMortgages.ie have revealed than on “average” mortgages throughout the country anywhere between €40,000 and €100,000 could be saved by moving to another lender. The broker, reflecting the views of the sector, expects a surge in mortgage switching over the next 12 months as banks ramp up their interest rate price war with more and more households back in positive equity with every passing month.
Joey Sheahan, head of Credit with MyMortgages.ie explained: “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 considerable savings.
“A mortgage is most people’s biggest monthly expenditure and yet it’s something that people don’t pay enough attention to when it comes to getting the best value on the market. Many people assume that once they’ve taken out a mortgage with a lender for 20/25/20 years, then that’s the end of the decision making process. But mortgages are just like any other financial product – they should be reviewed every 3 years to ensure you are not paying over the odds.
“There are lots of homeowners needlessly paying more than 3.6% in interest, but a large portion of people can easily switch lender once they have 10% equity in their property. There are less and less people in negative equity due to the unprecedented recovery in property values over the past few years” Experts at MyMortgages.ie say that there has been a raft of debate and discussion in recent years surrounding the high variable rates that the banks have been charging mortgages customers since the start of the recession.
Mr Sheahan added: “Lots of people are struggling financially under the weight of these rates. We deal with clients daily who are unaware that switching could even be an option for them – many believe they are simply “locked in” to the contract with their current lender. And of those who have heard of switching, most just think it’s too much hassle.
“People have also voiced concerns over the cost of switching but they don’t realise that most banks will more than cover this from €1,500 up to 2% of the loan amount. So all these assumptions are inaccurate at best and are costing people thousands of worst.”
Source: Evening Echo November 27, 2017 http://www.eveningecho.ie/
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 firstname.lastname@example.org in Cork +353 21 4277037 or 353 86 8060601
MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland.