Saving on Mortgage Payments: A Guide to Mortgage Transfers
In the Irish market, mortgage switching activity has seen a significant increase, with a 27% rise in volume terms and almost a 50% increase in value for July alone. This trend is largely driven by rising property prices, leading to increased borrowing levels.
When considering a mortgage switch, it's important to be aware of the associated costs. The main expenses include legal fees, usually around €1,500, and valuation fees, which typically amount to around €180. However, these costs can potentially be offset by cashback offers from some lenders. Six Irish lenders currently provide cashback to those switching their mortgage, with offers ranging from €1,500 to 2% of the mortgage amount at draw down.
Assessing the financial benefit of switching requires knowledge of the approximate home value, current mortgage balance, Building Energy Rating (BER), and potential tiered rates based on mortgage value and Loan-to-Value (LTV). Lenders in Ireland tier their mortgage rates, with 'high value' mortgages (€250,000 or more) commanding lower rates. Additionally, some lenders offer lower rates for energy-efficient homes with A or B energy ratings under 'Green' rate products.
While we may see some downward movement on individual rates, mass rate cuts in the near term are not expected. The highest current interest rate for new contracts in the Irish market is around 2.85%, while the lowest rates can be as low as 0.00%, for example at Allied Irish Banks. This highlights the significant disparity between mortgage rates in the Irish market, with the lowest rate starting from 2.98% and the highest at 6.15%.
People who have been sold to vulture funds may find high rates, but lenders are becoming more accommodating to these types of borrowers. One example of this is Avant Money, which offers a Flex Mortgage variable rate starting from 2.98%, and the lowest fixed rate on the market is currently at 3%.
It's essential to remember that switching a mortgage involves time and effort. However, the potential savings could be substantial. According to the latest figures from doddl.ie, switching mortgages could potentially save up to €7,505 per year.
In conclusion, with the right research and careful consideration, switching mortgages could lead to significant savings for many homeowners in Ireland. It's always advisable to consult with a financial advisor to understand the best options tailored to your specific circumstances.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
