New rules start today to make it easier for mortgage customers to make savings

Customers will have to be told if they can make savings on their mortgage under new Central Bank rules that come into effect today.

New rules start today to make it easier for mortgage customers to make savings

Customers will have to be told if they can make savings on their mortgage under new Central Bank rules that come into effect today.

Banks will now have to give customers 60 days notice before their fixed-term contract ends and give details of the new rate.

Also, those on variable rates will have to be told every year if they can move to a cheaper interest rate.

Daragh Cassidy from price comparison website Bonkers.ie explains why the changes have been made.

Mr Cassidy said: "It's A, to make it easier for customers to switch mortgage by streamlining the process and B, it's to make it easier for customers to know when and if they should switch mortgage by improving the communications between banks."

The changes to the Consumer Protection Code mean that banks will have to tell their customers if they can make savings on their loan and how to do so.

The Central Bank says it wants to give customers more transparency and make it easier to switch provider.

Mr Cassidy said: "Often when we talk to customers about why they won't switch mortgages, two things come back. Firstly, customers think the process is too cumbersome and it''s be too complex.

"Secondly, customers just don't realise the amount of money that they could actually save, so these changes should help to address that."

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