Mortgage switching too cumbersome, says expert

New proposals from the Central Bank to aid mortgage switching are helpful but fail to address the biggest hindrance — the level of paperwork and administration in the process, a mortgage expert has said.

Irish Brokers Association (IBA) mortgage committee chairman Michael Dowling said the Central Bank’s proposal that lenders inform consumers about other available mortgage options that could save them money, as well as helping consumers compare their existing mortgage to other mortgage options, was to be welcomed broadly.

However, he added: “Anything that helps consumers is to be welcomed, such as asking lenders to cooperate with each other. There are huge savings to be made but unfortunately the process is currently too cumbersome and the Central Bank proposals don’t address that aspect.”