Save Thousands by Switching Your Mortgage!

mortage-loanIf you are looking to cut costs, switching your mortgage could save you thousands.

I am amazed at how savvy people can be when it comes to cutting the costs of their household bills such as phone/broadband, heating or groceries, yet they continue to overlook their most significant household expense – their mortgage!

According to recent figures from the Central Bank of Ireland, the average interest rate being charged by Irish banks is 4.26%, and that’s only the average – there are many people on rates of 4.5% or higher. These higher rates are particularly prevalent for people that took out mortgages between 2009 and 2013.

During this period, people were so relieved just to have their mortgage application approved that they really were not particularly concerned what the interest rate was. However, this is something they should be looking into now, because switching your mortgage can lead to significant savings.

The current interest rates being offered by the banks are somewhere between 3.3% and 3.9% and If you consider someone who took out a 30 year mortgage in 2011 for €250,000 at 4.4%, their monthly repayments would be somewhere in the region of €1,346 a month. If that person drew down that mortgage today at, say, a 3.6% interest rate, they would be paying somewhere in the region of €1,235 a month. That’s a saving of €1,332 a year and a whopping saving of €34,760 over the course of a 25 year mortgage.

Not alone that, but all the mortgage lenders are aggressively competing with each other to entice potential customers to switch their mortgage with many of the lenders offering to pay all, or part, of your legal fees. Some lenders are even offering cash back to customers!

So you ask, where’s the catch? There is none, really. Obviously the banks will only be seeking to take over mortgages that are operating well and where your equity in the property is over 20%. So if your mortgage is in arrears and you are in poor financial health, you may not eligible. You will also need to get a new valuation of your home from an auctioneer, which generally costs about €150 plus vat, but that’s it. By and large, your legal fees will be taken care of by the bank, and when you look at the yearly saving you could make, why wouldn’t you?

Please feel free to email me for further information on switching your mortgage to info@platinumfinancial.ie or call me on 01-9081360

Leave a Reply

Your email address will not be published. Required fields are marked *