Homeowners switching mortages could save €250 a month

Homeowners switching mortages could save €250 a month

Rising house prices could be behind new figures showing more people are switching mortgages.

According to the Banking and Payments Federation of Ireland, just over 4,200 mortgages were approved last month, a 6% increase on the same time last year.

Approvals for remortgage or switching options have seen a 72% rise in the last 12 months and are now worth €119 million.

While the number of first-time buyer mortgages dropped by 3%.

Daragh Cassidy, Head of Communications at price comparison and switching site bonkers.ie, said there are huge saving to be made by switching.

"The level of switching in the Irish mortgage market is still far too small, particularly when you consider the potential savings involved, but the increase is encouraging and is a reflection of growing competition among banks for new business," he said.

"Rising levels of equity due to the rapid rise in house prices has also helped as previously mortgage holders who were in negative equity would have had few options.

"Someone who has a mortgage of €250,000 and is paying a 4.3% standard variable rate could save over €250 a month by switching to the cheapest rate on the market.

"And while there are some upfront costs associated with switching mortgage provider, in many cases banks will provide cashback to those who switch or a contribution towards the legal fees.

"Irish mortgage holders still remain reluctant to switch, which is crazy given the potential savings involved.

"There’s now a huge variation in rates and incentives across all the different lenders so I would encourage anyone who’s been with their mortgage provider for a few years to consider their options and look into switching to a better deal.”

Digital Desk


More in this Section

Mining experts to assess the risk of West Cork sinkholeMining experts to assess the risk of West Cork sinkhole

Residents in Leitrim continue round-the-clock protest against centre for asylum seekersResidents in Leitrim continue round-the-clock protest against centre for asylum seekers

Developer offers to lease almost 500 apartments for social homes in CoolockDeveloper offers to lease almost 500 apartments for social homes in Coolock

Revised plans for controversial Bus Connects plan to be unveiledRevised plans for controversial Bus Connects plan to be unveiled


Lifestyle

Put provenance first this season and make 'Made in Munster' the label to be seen in. With outstanding craftmanship and commitment to quality, these homegrown designers are making Munster-made fashion wish list worthy around the world. Shopping local has never looked so good. Carolyn Moore reports.Made in Munster: Shopping local has never looked this good.

Karen Cunneen-Bilbow Owner, Fabricate IrelandMade in Munster: ‘I turned my hobby into a business’

An invitation is extended to all to pay a visit to Bride View Cottage, writes Charlie WilkinsSeasonal cheer will spread early in Co Cork as an invitation is extended to all to visit Bride View Cottage

After a week of Fortnite Chapter 2, we think it’s fair to say Epic lived up to their name with the game’s ‘re-launch’.GameTech: Happy after a week of Fortnite Chapter 2

More From The Irish Examiner