Mortgage Switching Made Easy: 2020 Time to Switch & Save
Category : Mortgage News
1. The problem with not switching is you don’t make savings!
Over 80% of Standard Variable Rate Mortgage holders could save if they switched according to brokers in Ireland. (Irish Times, 7 January 2020). A mortgage rate comparison from a broker could save you hundreds if not thousands each year after making the simple switch.
Indeed, mortgage providers are more likely to lower their rates if consumers switch to more competitive rates every couple of years.
At Mortgage123, we specialise in comparing rates on the market and getting you a fast and easy mortgage switch approval. For that, we need only a couple of documents from you.
2. Proof of Income
- Salary Certificate to be completed by your employer
- 3 recent payslips
- Your most recent statement of earnings.
For Self-employed/ directors/ sole traders/ partnerships/ Rental
- 2 years financial accounts or trading accounts
- Chapter 4 statement for the last 2 years: A statement of total income or profits, tax chargeable and tax paid for a particular tax year for people who are: self-employed, directors, and/or receiving income of any kind where some or all of the tax cannot be collected under the PAYE system.
- Income tax return form (form 11) for the last 2 years
3 Month’s Bank Statements
1 Month’s Credit Card Statement
4. Legal Expenses for switching mortgages
Same as a new mortgage, a switcher mortgage needs to pass through the legal route.
Thankfully, when it comes to switching, the cost and workload for the solicitor is about half of what it is when buying a new property.
Most of your legal costs will go on your solicitor’s professional fee, with some extra euro going on his/her outlays, associated costs and, of course, VAT. Here’s a summary of what they’ll do for their fee:
- First, your solicitor will request the deeds to your home from your old bank and act as the point of contact with your new bank for the switching process.
- Your solicitor will then invite you in for a consultation to go through the loan offer from your new bank and to advise on any questions or concerns you might have.
- If you’re happy to proceed with the switch, you’ll sign a new loan agreement, which your solicitor will send to your new bank. If you wish to add a new name to the title deeds of your home, your solicitor can help with that too.
We can recommend solicitors who charge as little as €750 plus VAT and disbursements.
Although not strictly a legal fee, there is always a valuation fee associated with switching mortgage too, which will cost you around €150.
Most mortgage providers extend money towards legal expenses.
KBC – €3,000
Ulster Bank – €1,500 plus free valuation
Permanent TSB – 2% cashback
AIB – €2,000
Rates start from 2.25%
If you are paying over 3% on your mortgage, it is time to search around!