You could be in line for ‘tens of thousands of Euro’ by switching your mortgage provider
A new report from the Banking and Payment Federation (BPFI) says that mortgage holders could save up to €3,300 annually by switching mortgage providers.
Figures from the BPFI say that in the final quarter of 2018 there were 1,684 re-mortgage/switching loans, and experts say more needs to be done to let homeowners know that they could be eligible for savings and that it is not as “arduous, complicated or intimidating” process as they may expect.
“The numbers stack up – switching could save an average mortgage holder anywhere in the region of €275 monthly or €3,300 annually or €99,000 over the life of a fairly average sized €280,000 mortgage over 30 years, with a LTV of less than 50%, by reducing the variable interest rate from 4.5% to 2.75%,” explained Joey Sheahan, Head of Credit at MyMortgages.ie.
“We need to do more to broadcast to every mortgage holder in the country that they could be in line for savings, and to explain to them that the process need not be arduous, complicated or intimidating as they might expect.”
“2019 looks set to really open up the market – underpinned by the changes to the Consumer Protection Code, which should see an increase in the level of choice and information offered to mortgage holders and put greater onus on banks to alert current mortgage holders to their options around mortgage rates.”
“We also expect to see competition among banks heating up in the months ahead, and banks vying for customers can only mean better value for those mortgage holders they are hoping to attract.
According to Sheahan, if you are a fixed or variable rate mortgage customer, you could potentially save tens of thousands of Euro over the remaining term of your mortgage if you simply switch mortgage provider.
He explained: “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. The more equity you have built up in your home the more savings you are likely to make.”
MyMortgages Limited trading as MyMortgages.ie is regulated by the Central Bank of Ireland.