Switcher Mortgage - Why Do People Remortgage?
If you got out a mortgage some time ago, it may be likely that you can switch (remortgage) to a much better rate without incurring any switcher mortgage costs.
There are 300,000 mortgage customers on high standard variable rates. These customers can potentially save thousands of euro over the remaining term of their mortgage by switching mortgage provider. Switching is relatively easy and in some cases, free. Many lenders are willing to contribute up to €2,000 toward the cost of switching.
In What Situations Should You Consider a Remortgage and Switch to Another Provider?
- You are paying more than 2.3% on your mortgage.
- You need to borrow extra for an extension, moving house, etc.
- You want to change the conditions on your mortgage, such as mortgage term.
Check out our Switcher Mortgage Calculator to give you an idea of what you might save.
How Switcher Mortgages Work?
There are certain conditions which put you in a good position when applying to remortgage. The new lending institution will want to ensure that you have been able to meet your mortgage repayments and that your property is not in negative equity. Hence, switching will not be an option for borrowers in arrears, or for properties with current market value lower than the outstanding mortgage loan on them.
80% loan to value ratio on your mortgage gives you a good chance to qualify for great savings.
Switching your mortgage can do the following:
- Reduce your monthly repayments
- Take years off your mortgage term
- Increase the amount borrowed
- Release cash for Home Improvements
Below are two examples how this works.
Example 1 - Reduced Monthly Repayments
John and Ciara, aged 35 and 34 were 5 years into their mortgage of €220,000
| Old Bank | New Bank |
| 4.5% p.a. interest | 3.0% p.a. interest |
| Repayments €1,041 per month | Repayments €927 per month |
| Saving €114 per month | |
| Saving €1,368 per year |
Example 2 - Reduced Mortgage Term
Pat and Edel, aged 54 and 49, had 16 years left on their mortgage with an outstanding balance of €240,000
| Old Bank | New Bank |
| 4.39% p.a. interest | 2.95% p.a. interest |
| 16 years | 14 years |
| Repayments €1,737 | Repayments €1,745 |
| Saving 2 years of the mortgage | |
| Saving €41,880 |
Where Do I Start with a Remortgage?
Start Today! Fill out the Mortgage123 Online Application Form and see where you stand! A mortgage advisor will assess your situation free of charge and get back to you today!
Click image to view or download mortgage checklist
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