New Findings Highlight Low Engagement with Mortgage Switching

Recent research reveals that fewer than one-third of mortgage holders have considered switching lenders. In response, the mortgage industry has launched a nationwide campaign to raise awareness and provide essential information for potential switchers.

Only 33% of mortgage customers have explored available mortgage rates in the past six months, highlighting a need for better education on potential savings and benefits.

There was a time when banks fiercely competed to attract mortgage customers, offering enticing deals and benefits to encourage switching.

However, the financial crash and later the COVID-19 pandemic created a climate of caution, curbing such aggressive marketing. Now, with markets stabilizing, banks are once again rolling out incentives to entice homeowners to switch, hoping to gain an edge in a resurging mortgage market.

The new website InYourInterest.ie offers to:

“…answer some of the questions you might have when considering switching mortgages, the steps involved in getting ‘switcher ready’ as well as links to other sources of information“.

Steps and changes include:

The Banking & Payments Federation Ireland (BPFI) and lenders have introduced a standardised salary certificate, simplifying mortgage applications by requiring just one certificate from an employer.

Eligibility: Borrowers must meet lender criteria, including full repayments, no arrears in two years, and other case-by-case policies.

Timing: Variable rate mortgages can be switched anytime, while fixed rates may involve waiting or fees for early exit.

NB: Tracker mortgage holders should seek financial advice before making changes.

Switching your mortgage, also known as remortgaging, can offer several benefits. You might secure a lower interest rate, which could significantly reduce your monthly payments and save money over the loan’s term. Switching can also provide access to more favorable terms, such as shorter loan durations or flexible repayment options. Additionally, if your current deal is ending, remortgaging helps avoid being shifted to a lender’s higher standard variable rate. It can also unlock equity in your home for other purposes, such as renovations or investments. Ultimately, it’s an opportunity to optimize your financial situation, provided you carefully weigh the costs and benefits.

It is crucial to evaluate all available options thoroughly to ensure the decision aligns with your unique circumstances and long-term goals. Taking the time to compare choices can help you make an informed, confident choice that best suits your needs.