Mortgage holders could save over €10.000 by switching – Central Bank report states, but the vast majority opt not to change, according to a new study.
The research by the Central Bank found that 61 per cent of eligible mortgage holders could save more than €1,000 within the first year if they switched providers. This would result in a more than €10,000 saving over the remaining term of the loan.
How much could I save?
According to the Central Bank, three in every five eligible mortgage holders stand to save over €1,000 within the first year alone if they switch mortgage provider, and more than €10,000 over the remaining term.
Those who switched ended up with an interest that was, on average, 1% lower than what they’d been paying.
To see how much you could save, just head over to our mortgage calculator and input your details to get a quote.
Can I switch?
While the savings on the table are certainly exciting to see, it’s important to note that not everyone will be eligible to switch.
For example, most lenders will want to see that you have at least €30,000 remaining on your mortgage as well as five years.
Also, if your financial circumstances have changed for the worse since you originally got your mortgage you may not be accepted by any lenders.
Banks will also want to see that you have at least 10% equity in your home, though 20% or more would be ideal.
Also, those on tracker rates will generally be getting the best deal available anyway so switching for them would make no sense.
Finally, if you’re on a fixed rate you’ll usually be charged a breakage fee for leaving it early although those with less than 12 months remaining will be charged little, if anything, for breaking contract and so should not be deterred from switching.
Get in touch with us!
If you are considering making a change by switching your mortgage please get in touch with us though our social media or website.
We can assist you in anyway to make the process as simple as possible for you.