Unlock Savings with Mortgage Switching: A Simple and Money-Saving Solution

2023-07-06

Switching your mortgage is an easy and effective way to put extra money back into your household budget, leading to significant savings. However, many people in Ireland are still unsure abut switching because they underestimate the potential savings or find it challenging to compare mortgage options. Some may even believe that the process is lengthy and complicated.

In this article we provide you with the facts about mortgage switching, helping you understand the process and the benefits it can bring.

What is mortgage switching?

Mortgage switching involves getting a new mortgage either from your current lender or a different one. You can switch your mortgage to lower your interest rate, reduce your monthly repayments, or when your current mortgage's fixed-term is ending. By making the switch, you could save over €20,000 throughout your mortgage term.

How much does it cost to switch your mortgage?

When you partner with Which Mortgage, you will not be charged any fees for our services. The only costs you will incur are related to conveyancing fees. On average the conveyancing fees will amount to approximately €2,000, however, we help you minimise these costs by connecting you with solicitors who offer competitive rates. Additionally, if you receive a cashback offer, you can utilise it to cover the conveyancing expenses, further reducing your costs.

When can you switch your mortgage?

Mortgage holders generally choose to switch mortgage once they're outside their fixed-rate period, typically 3 or 5 years after initially taking out their mortgage. In such cases, there are no penalty fees involved. However, even if you are within the fixed-rate period, you can still switch, but you may incur a penalty fee. It's important to inquire with your lender about potential penalties, as they may not always apply.

Can you switch your mortgage more than once?

Yes, you can switch your mortgage more than once. Over time, better deals may become available, and you may consider switching again. There are no restrictions on the number of times you can switch your mortgage, even if you've previously received a cashback offer.

How do you switch your mortgage?

Switching your mortgage is a straightforward process, and at Which Mortgage, we handle all the details for you.

Here are the steps involved in switching your mortgage:

Step 1: Use our Switching Mortgage Calculator to assess available offers and calculate potential savings. Our calculator is a comparison tool which allows you to compare different offers and interest rates, enabling you to make an informed decision about which mortgage is best suited to your needs.
Step 2: Contact us for personalised, free-of-charge advice. We will explore the best options and guide you through the choices.
Step 3: Once we've assisted you in choosing your desired mortgage, gather the required paperwork, including proof of identity, proof of current address, proof of income, and bank statements.
Step 4: Provide the lender with a valuation of your home. They may suggest a valuer for you to use.
Step 5: Switching your mortgage involves creating a new legal agreement with a lender. This requires the services of a solicitor to draft and sign the necessary documents. As part of our services, we can put you in touch with solicitors to handle the legal aspects of your mortgage switch.
Step 6: After your new mortgage is approved, complete a direct debit form with your new lender and remember to cancel the existing direct debit with your previous lender.

The whole switching process usually takes up to 12 weeks. Compared to buying a home for the first time, switching is more streamlined because the lender's vetting process is quicker due to your previous mortgage experience. This means you'll feel less overwhelmed during the switch.

Don't miss out on the opportunity to unlock significant savings by switching your mortgage. Contact us today, and our team will guide you through the process of switching your mortgage.