Revealed, Over €2.8 Billion to be Saved Across the Country by Switching Mortgage

004 advisor local

Over 180,000 households nationwide stand to save over €15,000 each by switching their mortgage. New analysis by moneysherpa.ie the Irish personal finance website has broken down how much could be saved county by county.

More than 10,000 switchers in South County Dublin will save over €33,000 by switching with €198 Million of savings across the county in total.

1,200 eligible switchers in Leitrim will save the least in the country at over €8,000 on average, but even in Leitrim savings are considerable with €11 Million to be saved by moving to better rates.

eb2a20d6 1026 4fc0 8d97 3ead29def0ba

Savings have reached record levels due to a combination of rising house prices and falling mortgage rates for switchers. With higher house prices mortgage holders now have lower loan to values and can get lower rates.

According to the latest data from the Central Bank of Ireland standard variable rate mortgage holders are on a mortgage rate of 3.48%, despite fixed rates of 2.2% or less now being available.

Commenting on the analysis Mark Coan, Managing Director of moneysherpa.ie said “Our analysis highlights the massive opportunity people have to save by switching mortgage. Over a quarter of mortgage holders can save an average of €15,000 across their remaining term.”

“Mortgage switching is the single biggest thing most of us can do to get our finances in shape. If you aren’t on a tracker or fixed rate you should almost certainly switch.”

“As the cost of living crisis deepens, clawing back money lost through high interest payments can help lift the burden on households and inject money back into the local economy”

Most mortgage brokers offer switching for free and legal costs for switching are usually half that for your original mortgage.

County by County Breakdown

c9f15ed3 b306 4cbf 8972 07b9c52f0fc5

Ulster Bank Closure Who Should I Switch to? Ireland 2022

ulsterbank
ulster bank closure

The impending Ulster Bank closure and the pull out of KBC this year from the Irish market is set to cause significant customer disruption.

There are over 1 million accounts and an estimated 500,000 customers with Ulster Bank and a further 300,000 with KBC. Dwarfing the scale of previous bank closures from Anglo, Danke Bank etc..

Closure notices for Ulster Bank customers are drop through customer’s doors by the end of March 2022 giving Ulster bank customers 6 months to switch to another bank, before your account is closed.

If you don’t switch by then, you will be simply issued a cheque with your remaining balance.

If you a have a mortgage with Ulster Bank this is set to be transferred to PTSB, but with PTSB’s rates some of the highest in the market it probably makes sense to look at switching that as well.

So what options are left for best current account, savings and mortgage?

Don’t panic there are some better and less expensive options out there than Ulster Bank and switching may not be as difficult as you think.

Switching Current Account – Ulster Bank Closure Ireland 2022

Best Digital Only Bank

If you don’t need to lodge cash or cheques then the Digital only banks N26 or Revolut are great options.

They have no monthly fees, the lowest once off fees and the best apps on the market. With features from kids accounts to trading in bit coin already built in and a really slick user experience.

They are also both covered under the EU Deposit Guarantees up to €100,000 the same as the non Digital banks.

One thing to watch out for though is some employers on old payroll systems may struggle with the EU Iban. This will only be a minority of employers however as under EU law everyone should have upgraded their payroll systems a number of years ago to be SEPA compliant.

Revolut already has 1.7 million customers in Ireland and recently became a full bank, so that’s why they are our pick of the bunch.

However, if you still need to lodge cash or cheques you have two options. Get someone with a traditional bank account to do it to their account and then send you the money or get yourself a traditional account from one of the banks below.

Traditional Banks

If digital only isn’t an option for you there are now 5 other more traditional banks you can choose from for your current account. The interest on all these accounts is pretty much irrelevant as it is so low, so what you are looking for is low fees.

If you don’t use your ATM regularly An Post or your local Credit union may be a good options. Both of these come in at €60 a year in fees. However, An Post charge 60c per per withdrawal and your Credit Union will charge around around the same so this can mount up quickly if you head to the cash machine once a week.

In that case we would recommend PTSB’s current account. It’s slightly more pricey at €72 a month, but withdrawals are free.

Switching Saving Accounts – Ulster Bank Closure Ireland 2022

Deposit interest rates are at record lows of around 0.5% with inflation heading for 8% or more, you should probably look at talking to a financial advisor if you have €10K or more to invest.

Investments can yield 4% per annum or more depending on the risk level and can help take the edge of inflation.

If you still want the security of a guaranteed rate the best rates are to be found from banks outside of Ireland. You can access rates up to 1.15% from banks across Europe on raisin.ie or consider a state saving account with around 0.6% interest rates.

If you have less than €10,000 squirrelled away then you may be better off leaving it or transferring it to your current account. The Digital Banks offer the ability for you to separate from your daily account with ‘vaults’ or ‘money jar’ features on their apps.

Switching Mortgages – Ulster Bank Closure Ireland 2022

Ulster Bank have sold their existing mortgages to PTSB and KBC to Bank of Ireland. This means if you have a mortgage with either you and your mortgage will transfer.

PTSB and Bank of Ireland have the highest mortgage rates in the market so many Ulster and KBC customers are considering switching to a different lender. If you are in your fixed rate period then PTSB and Bank of Ireland will have to honour those rates, but after that they could choose to hike rates increasing your monthly repayments.

Ulster’s non tracker rates range from 3.5% to 3.9% which are already some of the highest in the market.

So a typical Ulster mortgage customer on their 3.5% variable rate, with €150,000 remaining over 15 years would save €106 a month by switching to the best deal on the market, that’s more than €19,000 over their remaining term and would avoid the risk of a future rate hike.

Avant Money are offering €1,500 upfront for anyone switching their mortgage from Ulster Bank or KBC. The offer is available until the 31st of March and targets customers thinking of switching from Ulster & KBC as both exit the Irish market this year.

Switching costs are usually around €1,500 for solicitor and valuation fees combined, so this offer will make switching from Ulster and KBC effectively free.

At moneysherpa for example we offer an all in legal package including all outlays for €1,200 including VAT, while estate agent valuation fees are typically around €200. So €1,400 all in.

The repayment calculation is based on switching to Avant Money’s 5 Year fixed rate and using the switching offer to cover their upfront costs.

If you are a tracker however, sit tight. Any new owner will have to honour your existing terms.

You can see how much higher PTSB and Bank of Ireland rates are in the table below.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

Switching Next Steps – Ulster Bank Closure Ireland 2022

If you have an account with Ulster Bank you will have to switch it in the next month, so act now to beat the rush.

  • Best Current Account – Revolut
  • Best Savings Account – Raisin.ie

When it comes to mortgages Ulster didn’t have great rates to start with (3.5%-3.9%) and have now been bought out by one of the banks with the highest mortgage rates in the State, PTSB, so now is a good time to switch to save now and to avoid higher rates down the line.

You can calculate your mortgage repayment switching savings here.

This applies for anyone with with a variable rate around 50% of Ulster Bank mortgage holders. If you are still in your fixed rate period then sit tight until you are 3 months from the end then speak to a broker. If you are on a tracker don’t worry, the new owner will have to honour your existing terms.

You can book a free appointment to check out if you would save here.

3 Real Life Mortgage Switcher Examples Saving Over €10,000 Each

Switching or Remortgaging
Customer testimonial

You might have heard that the average mortgage switcher in Ireland saves over €20,000, but that sounds too good to be true, right?

I mean if that was true everybody would be doing it surely and you’d be straight on google to get switched yourself, so there must be a catch?

Spoiler alert: There’s no catch.

That’s why record numbers are switching right now with more joining in everyday.

So we thought in this article we would share some real life examples of 3 of our recent mortgage switchers. That way you can see for yourself what people are actually saving and what’s actually involved in being a mortgage switcher.

Read on to see what mortgage switchers just like you have saved in the last few months and how much you could save by switching.

If you want to see how different providers compare on your mortgage right now you can click here.

Customer Example Irish Examiner

moneysherpa switchers Graham & Daire were with Ulster Bank and saved €63,000 by switching according to the Irish Examiner

  • Over 25% of all mortgage holders will save over €10,000 by switching
  • It only takes 15 minutes for a mortgage quote
  1. Couple Switching from PTSB to ICS – Mortgage Switcher Example
  2. Couple Switching from AIB to Avant Money – Mortgage Switcher Example
  3. Single Switcher from PTSB to Avant Money – Mortgage Switcher Example
  4. What you should do next – Mortgage Switcher Example

Noel & Naeiri, Mortgage Switch from PTSB to ICS – Mortgage Switcher Example

Noel & Naeiri Gavin have a home in Navan and switched their mortgage using online broker moneysherpa.ie.  Noel works in engineering and Naeiri is a stay at home mum.

Due to a combination of the strong property market in Navan and a number of home improvements they made to the house, the value of their home increased to over €500,000.

This reduced their loan to value to less than 60%, which is the size of the mortgage compared to the value of the property, allowing them to access better mortgage rates. 

They originally took out their mortgage with Permanent TSB which has one of the highest rates in the market. 

The fixed rate they were on was expiring in a few months so they contacted Moneysherpa for guidance on their next step. 

If they did not take action the mortgage would revert to the general variable rate from PTSB, which was 3.7%.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

moneysherpa advised them that they could save even more by switching provider to ICS mortgages, who’s fixed rate packages at 2.29% APRC recognise and reward the reduced risk from a low Loan to Value ratio when your property is worth more than your loan value. 

Noel & Naeiri were able to reduce their mortgage payments and take 4 years off their mortgage saving over €38,000 in the process by completing the switch.

Murray and Jennifer, switched from AIB to Avant Money – Mortgage Switcher Example

Murray and Jennifer living in Drogheda switched their mortgage from AIB to Avant Money with moneysherpa. They saved over €10,000 with Avant Money’s 7 year Fixed rate and were able to use the savings they made to pay off their mortgage earlier.

Avant Money have some of the lowest rates on the market, their 7 year fixed is one of our favourites starting from 1.95% and locking in your savings for 7 years.

Short/Medium60% LTV70% LTV80% LTV90% LTV
Fixed TermRateAPRCRateAPRCRateAPRCRateAPRC
3 Years1.95%2.03%2.05%2.06%2.15%2.23%2.2%2.25%
4 Years1.95%2.02%2.05%2.23%2.15%2.23%2.2%2.23%
5 Years1.95%2.02%2.05%2.06%2.15%2.22%2.2%2.25%
7 Years1.95%2.01%2.05%2.07%2.15%2.21%2.25%2.28%
10 Years2.10%2.12%2.20%2.20%2.30%2.32%2.40%2.40%
AVANT MONEY RATES (APRC calculated on €100K loan, 30 years, valuation of €185, security release €40)

ICS Mortgages pip Avant at the post for the shorter fixed term products due to their more flexible credit policy. However if you have a sparkling credit history the Avant Money 3 year and 4 year fixed at 2.39% & 2.43% respectively are so close it makes no difference.

Sandra, Switching from PTSB to Avant Money -Mortgage Switcher Example

Sandra Chubb from Ballyfermot switched her €110,000 mortgage from PTSB to Avant Money in January.

She saved over €10,000 by lowering her interest rate from 3.4% to 2.01% APRC with Avant Money’s 7 year fixed product. 


By reducing her interest rate by over 40% she was able to afford to reduce her mortgage term from 21 years to just 12 saving thousands in interest payments. 


Sandra switched with online broker moneysherpa.ie 

“They were really friendly, gave me independent advice and helped me pull together the paperwork. Most people don’t realise they are in a position to save so much by switching” 

That’s why we would recommend using a broker to help you switch to a fixed rate product with a low on-going rate from either Avant Money or ICS.

The lenders with the lowest rates can usually only be accessed by brokers, many brokers are free to use and they can take the pain out of the paperwork.

Customer Example Irish Examiner

moneysherpa switchers Graham & Daire were with Ulster Bank and saved €63,000 by switching according to the Irish Examiner

  • Over 25% of all mortgage holders will save over €10,000 by switching
  • It only takes 15 minutes for a mortgage quote

What’s Next – Mortgage Switcher Examples

It makes more sense than ever to compare mortgage rates Ireland 2021 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

A big thanks to Noel, Naeiri, Murray, Jennifer and Sandra for letting us share their stories.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year with a 0.5% discount across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.78% APRC
  • Fixed for 3-5 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Annual Percentage Rate Charge (APRC) calculated on a €100,000 loan over 20 years. APRC represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]

New €1,500 offer for Ulster KBC Switching to Avant Money

Avant Money Mortgage Ireland 2021
ulster kbc switching

Ulster KBC switching. Avant Money are offering €1,500 upfront for anyone switching their mortgage from Ulster Bank or KBC. The offer is available until the 31st of March and targets customers thinking of switching from Ulster & KBC as both exit the Irish market this year.

Ulster Bank have sold their existing mortgages to PTSB and KBC to Bank of Ireland. This means if you have a mortgage with either you and your mortgage will transfer.

Higher Rates on the Way for Ulster and KBC customers? – Ulster KBC Switching

PTSB and Bank of Ireland have the highest mortgage rates in the market so many Ulster and KBC customers are considering switching to a different lender. If you are in your fixed rate period then PTSB and Bank of Ireland will have to honour those rates, but after that they could choose to hike rates increasing your monthly repayments.

You can see how much higher PTSB and Bank of Ireland rates are in the table below.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

Free Switching Costs – Ulster KBC Switching

Switching costs are usually around €1,500 for solicitor and valuation fees combined, so this offer will make switching from Ulster and KBC effectively free.

At moneysherpa for example we offer an all in legal package including all outlays for €1,200 including VAT, while estate agent valuation fees are typically around €200. So €1,400 all in.

Example Switching Saving – Ulster KBC Switching

So a typical KBC mortgage customer on their 4.25% variable rate, with €172,000 remaining over 16 years would save €187 a month and €35,983 over their remaining term. The repayment calculation is based on switching to Avant Money’s 5 Year fixed rate and using the switching offer to cover their upfront costs.

3 Year Fixed
APRC Comparison
up to
50% LTV
up to
60% LTV
up to
70% LTV
up to
80% LTV
up to
90% LTV
Avant Money2.03%2.03%2.06%2.23%2.25%
ICS Mortgages2.78%2.78%2.80%3.03%3.06%
Finance Ireland3.03%3.17%3.19%3.19%3.44%
Haven Mortgages3.0%3.0%3.0%3.0%3.0%
AIB2.72%2.91%2.91%3.09%3.09%
EBS3.5%3.5%3.5%3.5%3.5%
Permanent TSB3.57%3.57%3.67%3.67%3.71%
Bank of Ireland3.7%3.7%3.7%4.1%4.1%
4 Year Fixed
APRC Comparison
up to
50% LTV
up to
60% LTV
up to
70% LTV
up to
80% LTV
up to
90% LTV
Avant Money2.02%2.02%2.06%2.23%2.23%
Haven Mortgages* 2.8%2.8%2.8%2.8%2.8%
AIB2.77%2.95%2.95%3.13%3.13%
Permanent TSB3.14%3.14%3.24%3.24%3.39%
EBS3.5%3.5%3.5%3.5%3.5%
Bank of Ireland**3.3%3.3%3.4%3.5%3.7%
*Green Rate **Over €250,000 Rate

If you are with KBC or Ulster and not on a tracker, the new Avant Money €1,500 switching offer means you will probably save over €20,000 without having to pay any upfront fees.

Next Steps – Ulster KBC Switching

Ulster and KBC have been bought out by the banks with the highest mortgage rates in the State, PTSB and Bank of Ireland, so now is a good time to switch to avoid higher rates down the line.

You can book a free appointment to check out if you would save here.

The €1.5 Billion Mortgage Switch Ireland – Why Switching is the New Black

switch mortgage ireland
Mortgage Switch Ireland 2021

The big mortgage switch Ireland.

More people have completed a mortgage switch this autumn than for a decade. Over 1,616 in Q3 2021, the highest since 2009.

The mortgage switch is back because interest rates have now hit historic lows.

The average saving for a mortgage switch at the end of 2019 was a whopping €21,626. With over 150,000 Irish mortgage holders set to save a staggering €1.5 Billion by switching.

With rates falling and prices rising since 2019, those switching savings have only gotten bigger since then.

Mortgage switching is set to explode in the coming months quadrupling to the rates seen in other countries across Europe and back at the height of the boom.

Read on to get the inside scoop on the big mortgage switch and see exactly what it might mean for you and your mortgage.

  1. Why Mortgage Switching is the New Black – Mortgage Switch Ireland 2022
  2. How Much can You Save by Switching Mortgage? – Mortgage Switch Ireland 2022
  3. Why isn’t Everyone Switching? – Mortgage Switch Ireland 2022
  4. In a Nutshell – Mortgage Switch Ireland 2022

Why Mortgage Switching is the New Black – Mortgage Switch Ireland 2022

According to the latest figures from the Banking and Payments Federation [1] more people have completed a mortgage switch this autumn, at 1,616, than since 2009 just after the banking crash.

The chart below shows 1% of the 674,176 mortgage holders in Ireland are now switching every year, that’s over 6,700 and it’s only heading one direction.

Annual Switching v Number of Mortgage Holders Ireland
Switching rates since 2014 (Source: BPFI Report Q3 2021)

The mortgage switch is so fashionable right now due to mortgage rates hitting record lows.

  • 2015 Existing Rates 4.3% v New Rates 3.9%
  • 2020 Existing Rates 3.48% v New Rates 2.68%

So back in 2015 a mortgage switch would cut your mortgage rate by 0.40%, but by the end of 2019 the difference had doubled to 0.80%. That makes new rates over 20% cheaper than existing rates, a record saving.

You can see this increase in ‘spread’ in the chart below. The Standard Variable Rate for Existing Loans in green has hardly dropped at all, as the banks have tried to keep their existing customer rates high.

The 1 to 3 year fixed new lending rate in red however has plummeted as new lenders, Avant Money, ICS and Finance Ireland, have entered the market.

Screen Capture
Mortgage Rates (Source: Central Bank of Ireland Economic Letter No.12 2020)

These rates are the lowest since trackers were on the go back in 2008.

This widening rate gap alone is enough to drive increased switching, but increasing house prices have further sweetened the deal. As home values rise the loan to value ratio gets smaller.

Lenders see low loan to value ratios as less risk, allowing customers to access even lower rates.

The mortgage switch double whammy, the widening rate gap and lower loan to values, is creating a switching surge.

How Much can you Save by Switching Mortgage? – Mortgage Switch Ireland 2022

So this begs the question, should I switch and how much will I save if I do?

There are over 670,000 residential mortgage holders in Ireland right now, 36% of these are on a tracker mortgage tied to the European Central Bank rate. If you’re on a tracker you almost certainly would be better off staying put.

That leaves the 64% of mortgage holders not on a tracker, which equals over 430,000, 27% of all Irish households.

Almost all of these will save something by switching, even those on a fixed rate, but this is where it gets really juicy.

According to the Central Bank almost 150,000 will save more than €10,000 by switching, a combined saving of over €1.5 Billion. You can see exactly how the 150,000 breaks down below.

Central Bank SwitchingFixedVariableTrackerTotal
All Mortgage Holders171,105259,276243,795674,176
Save something29,082153,1900182,272
Save more than €10,00020,83789,657110,484
Save more than €30,0008,07628,49936,575
Central Bank of Ireland Economic Letter 12 2020

We ran the numbers for an average mortgage switch ourselves, just to be sure.

  • Average mortgage switch = €235,401
  • Average term = 22 years
  • Average reduction in rate = 1%

= An Average Saving of €21,626

Yes you read that right, the average mortgage switch saving was €21,626 according to the Central Bank’s own figures.

Why isn’t Everybody Switching? – Mortgage Switch Ireland 2021

Hang on a minute, shouldn’t mortgage switching be much higher if there is €1.5 Billion to be saved?

It most certainly should, switching in Ireland lags almost all developed countries world wide with only 1% switching every year.

Italy has over four times that rate of switchers at 4.1% and the Aussies see over 8% of their variable rates switched per year. Across the pond in the UK switching rates are also more than double that here.

As the savings between existing and new rates are much bigger than that seen in other countries, what exactly is going on?

Part of the reason is due to tracker mortgages. The super generous terms offered by the Irish banks back in the boom, has led to over a third of all mortgage holders staying put and holding on to what they have for dear life.

The rest of the gap is usually put down to the idea that it’s not in the Irish psychology to switch, we are a nation loyal to a fault. Let me bust that particular myth right here, the data shows the Irish love a great deal as much as anyone.

Remember our first chart showing how we were at record switching levels? Let’s zoom out a little on the data and see the trends if we go back in time a little further.

Annual Switching v Number of Mortgage Holders Ireland 1
Switching Rates since 2003 (Source: BPFI)

That’s right, before the crash mortgage switching in Ireland was running at 4% per year, right up there with other nations.

Due to negative equity and uncompetitive rates in the eight years after the crash Ireland simply got out of the habit of switching. It’s just not been a thing for almost a decade, so has fallen off the radar.

I’ve listed the top 4 reasons for not switching below, based on the latest Central Bank data.

Screen Capture 1
Reasons for not switching (Source: Central Bank)

So what are the answers to each reason?

  1. I do not know what the legal costs of switching would be. Answer: The solicitor cost and a valuation should cost less than €1,500 all in.
  2. I might switch if there was a long term guarantee of interest rate advantage. Answer: With Avant Money for example you can fix your rate for up to 30 yrs.
  3. I do not know if I would save money. Answer: You almost certainly will if you’re not on a tracker.
  4. Switching would be too complex. Answer: Use a broker for both advice and to take the pain out of the paperwork they’re free to use in many cases.

With the barriers falling and savings increasing it’s only a matter of time until we are back up at the 4% mark and mortgage switching is the new big thing.

In a Nutshell – Mortgage Switch Ireland 2022

After falling out of fashion the mortgage switch is about to make a comeback.

  • Rates are at record lows and savings at record highs.
  • The average saving is €21,626 massively out weighing the costs of switching
  • You can fix rate anywhere up to 30 years to ‘lock in’ your savings
  • If you use a broker you can switch for free in less than 3 months

The clock is ticking though, with inflation rising to over 5% variable rates will probably start to rise over the next 6 months. By switching to a new lender with a fixed rate of 5-15 years you can make savings of over €10,000 while also protecting your home from increased repayments.

What’s Next – Mortgage Switch Ireland 2022

It makes more sense than ever to compare mortgage rates Ireland 2022 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year offering 0.5% lower than other lenders across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.78% APRC
  • Fixed for 3-5 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Switcher Mortgage Ultimate Guide – Cash Back Hack, 3 Tips to Maximise Your Savings

switcher mortgage
switcher mortgage

We all know switching your mortgage is the biggest thing you can do to save loads of cash, but what if I told you there was a way to make these savings not just once, but four times over.

Sounds too good to be true right? It isn’t if you are prepared to put the effort in. By using the right strategy you can make the absolute most of all the juicy switching offers currently available.

There are nine different mortgage lenders in Ireland right now, with over 250 different mortgages on offer. In this rundown we will recommend the best switcher mortgage short term, the best switcher mortgage for the long term and the best switcher mortgage for multiple switchers.

The right switcher mortgage for you depends on whether you are looking to switch and stick or if you want to switch multiple times.

Based on our review of all 250 switcher mortgages in the market we recommend the following options.

  • Best switcher mortgage short term switching – ICS 3 year Fixed Rate
  • Best switcher mortgage long term switching – Avant Money 15 year Fixed Rate
  • Best switcher mortgage multiple switcher – PTSB Variable Rate

Read on to see which approach is the best fit for you and how much you could save.

If you want to see how different providers compare on your mortgage you can click here.

  1. Multiple Switcher, Cashback Hack – Switcher Mortgage
  2. Long Term Switcher – Switcher Mortgage
  3. Short Term Switcher – Switcher Mortgage
  4. What you should do, the verdict – Switcher Mortgage

Multiple Switch, Cash Back Hack – Switcher Mortgage

Irish Mortgage providers use either introductory fixed rates or once off cashback offers to tempt new customers to switch.

Cashback offers from EBS, PTSB and Bank of Ireland give you 2% of the total mortgage amount back in cash when you take out the mortgage. So on the average switch of €240,000 that’s €4,800 in cash at drawdown as shown below.

Compare
Cashback
Cashback MinCashback Max Cashback conditions
Permanent TSB0%2%2% not available to 4 year fixed term.
EBS2%3%2% on drawdown 1% after 5 years
Bank of Ireland2%3%2% on drawdown 1% after 5 years

You should tread carefully though as the rates from these providers are some of the highest in the market. Surprise surprise, as you can see from the table below the highest follow on and variable rates are with the three providers with the cash back offers.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

If you are prepared to switch multiple times though you can get your hands on the cash back offers without paying the higher on-going rates. One of the few times you can really have you cake and then get to eat it afterward.

So if you take out a variable mortgage with PTSB you can take up the cashback offer, then switch to Bank of Ireland take out another variable rate cashback offer, then EBS for your final variable rate cashback offer.

On the average switcher mortgage of €240,000 that’s

  • €4,800 Cash Back (PTSB)
  • €4,800 Cash Back (BoI)
  • €4,800 Cash Back (EBS)
  • Total Cash = €14,400

Even better when you have picked up your cash from EBS you can then switch to a fixed rate deal through a broker with Avant Money or ICS to get on a low interest rate. This last step is really important as it can save you as much as the multiple switch hack.

Check out our advice on the best longer term low interest rate options below.

Best Long Term Switcher Mortgage – Switcher Mortgage

This image has an empty alt attribute; its file name is recommended-1024x1024.jpg
ProviderAPRCProductLTVApproval rate
Avant Money2.29%15yr fixed<60%Medium

The Avant Money 15 year fixed rate product has the lowest introductory rate of 1.95% in the market for the first fifteen years, with a market leading APRC over the lifetime of the mortgage of 2.29%.

If you know you staying put and want to lock out future interest rate rises this may be the mortgage for you.

The leading score on rate, whilst not dropping many points on the basis of flexibility, makes the Avant Money 15 year fixed product the best mortgage rate choice overall. 

Best fixed short term mortgage rate – Switcher Mortgage

ProviderAPRCProductLTVApproval rate
ICS Mortgages2.38%3yr fixed<60%High
Avant Money2.39%4yr fixed<60%Medium
Avant Money 2.43%3yr fixed<60%Medium

If you want to save on legacy rates, but want to keep your options open then there are still some good options out there.

The low fixed rate period is shorter so the overall cost of the mortgage is higher, but the mortgage rate across the term is still around 2.5% APRC.

ICS Mortgages pip Avant at the post for the shorter fixed term products due to their more flexible credit policy. However if you have a sparkling credit history the Avant Money 3 year and 4 year fixed at 2.39% & 2.43% respectively are so close it makes no difference.

What You Should Do, the Verdict – Switcher Mortgage

So should you make multiple switches?

Taking the cashback offers and switching multiple times is perfectly legal. As long as you choose a variable rate rather than a fixed rate you aren’t tied in to a minimum period before switching.

You will have to pay solicitors fees though for each switch, these come in at around €1,000 a switch, although many solicitors will knock a bit off for multiple switches if you haggle.

You also need to be prepared to put in the hard yards, although switching is a lot easier than taking out a new mortgage, switching 4 times over isn’t to be taken lightly.

Finally, mortgages are a major financial commitment and can be pretty complex. While your working through your multiple switch master plan, the market might change, the providers conditions might change and your own circumstances might change.

For most people then making the switch once to a lower on-going interest rate is the best policy. You still save thousands without all the hassle and risk of the multi switch strategy.

That’s why we don’t recommend the multi switch strategy. The reality is that although on paper the multi switch strategy makes sense, for most of us life gets in the way and it’s way too much hassle.

That’s why we would recommend using a broker to help you switch to a fixed rate product with a low on-going rate from either Avant Money or ICS. The lenders with the lowest rates can usually only be accessed by brokers, many brokers are free to use and they can take the pain out of the paperwork. The payback might not be as immediate as with the multi switch strategy, but for much less work you will still save thousands and get the best value.

If you are prepared to put in the work and take on the risks involved in a multi switch strategy however, don’t forget to talk to a broker about that final step to switch to a long term lower rate, otherwise you will lose almost all you gained by collecting those cash backs in the first place.

What’s Next – Switcher Mortgage

It makes more sense than ever to compare mortgage rates Ireland 2021 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year with a 0.5% discount across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.78% APRC
  • Fixed for 3-5 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

Overall, the Avant Money 15 year fixed rate came clearly out on top as the overall best mortgage rate. With their market leading APRC of 2.29%, which saves an amazing €20,000+ for switchers in most cases. Avant Money’s 7 and 4 year products are also a great choice for those looking for shorter or medium fixed terms.

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Annual Percentage Rate Charge (APRC) calculated on a €100,000 loan over 20 years. APRC represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]

The Ultimate remortgage and switch mortgage smart Q&A, Ireland 2022

switch mortgage ireland
switch mortgage ireland

How to switch mortgage provider?

The simplest way to switch mortgage is to speak to a mortgage broker. Brokers fees are usually paid for by the lenders and many have exclusive access to lenders with the best rates. Avant Money, ICS and Finance Ireland have the lowest rates and are only available via brokers. 

What is mortgage switching?

Mortgage switching is taking out a new mortgage with a new lender, usually because the new lenders interest rate is lower and using that mortgage to pay off the old mortgage. The average saving on switching in Ireland is over €20,000, leading to increased numbers of switchers.

How much does it cost to switch mortgage providers?

It costs around €1,400 to switch mortgage if you do it right. 

  1. A solicitor gathers the right paperwork and checks the terms of the new loan. The fees usually come in between €1,200 to €1,600 including VAT. 
  1. An estate agent values your home. So the bank can put you on the right rate and usually comes in at €150 excluding VAT.

How much are the legal fees to switch mortgage?

Legal fees to switch mortgage usually come in from €1,000 to €1,500. The solicitor has to request the deeds from your old bank and then handles the paperwork with your new bank. They will also make sure you understand the terms of the new loan before you sign the new loan agreement. 

moneysherpa have a panel of recommended solicitors that will complete a switch for €1,200 all in including VAT.

Do I need a solicitor to change mortgage?

Yes, under law you need a solicitor to switch mortgage. The solicitor will transfer the deeds from your old lender to your new lender and to advise you on the terms of the new loan offer. Having a solicitor also gives you and your bank confidence in the paperwork. A mortgage broker will handle the solicitor for you.

How much to switch mortgage?

Average costs to switch mortgage are under €1,400 inc VAT to cover a solicitor and estate agent. If you shop around you should be able to find a mortgage broker who is fully paid for by the lender and will manage the solicitor and estate agent on your behalf. 

How long does it take to switch mortgage lenders?

It usually takes 6-12 weeks to switch mortgage lenders. Switching mortgage is pretty straightforward compared to buying a property first time round. 

First you need to pass your new lender’s credit check, this is usually pretty quick, as you already have evidence you are paying a mortgage with your old lender. 

Then you need to get a solicitor involved to handle the contract paperwork. Finally, a local estate agent selected by the new lender values the property. 

What is involved to switch mortgage provider?

There are 4 steps to switch mortgage provider.

  1. Find the best lender using an online calculator
  2. For credit approval you will need to prove who you say you are and provide evidence of your ability to repay the loan. To confirm you are on the right rate the new lender will also ask you to get your home professionally valued. 
  3. Now comes the legal bit, which is much simpler than when you buy. Your solicitor gets the paperwork sorted, checks you understand it and you sign. 
  4. Now for the money switch, drawdown. When all the boxes have been ticked your new lender will ask you to fill in a new direct debit to collect your repayments. 

How to switch mortgage provider? 

5 simple steps to switching your mortgage

Step 1 – Calculate your mortgage savings online

Step 2 – Find a mortgage broker fully paid for by the lenders 

Step 3 – Gather your paperwork, bank statements and salary certificates

Step 4 – Use your broker to manage the solicitor and estate agent

Step 5 – Enjoy your new mortgage savings every month

How easy is it to switch mortgage?

Using a mortgage broker can make the switch mortgage process very straightforward, they will handle all the paperwork for you. If you shop around you should be able to find a broker that is fully paid for by the lenders. Solicitors fees and Estate agent fees are also covered by some lenders. It takes 6-12 weeks to complete the switch from start to finish.

How do I switch mortgage lenders?

To switch mortgage or to remortgage you simply take out a new mortgage with a new lender and use that to pay off your old mortgage provider. Typically this is to avail of a lower mortgage rate with the new lender on the same mortgage amount or to increase the mortgage known as ‘topping up’ to release equity from your home. It makes sense to consult with a mortgage broker before switching.

How often can you switch your mortgage provider?

There’s no limit on how often you can switch your mortgage provider, even if you have received a cashback offer. 

If you are still in your fixed rate period you need to watch out for ‘breakage fees’. Under EU law the fee is capped in line with the cost to the lenders of providing the rate. This depends on the difference between the interest rate when you fixed and the interest when you switch. 

As a result, often there are no fees at all, but the only way to be sure is ask your bank what your fee would be.

How many times can you switch mortgage?

Under EU law there is no limit on how many times you can switch your mortgage. This also means that you can avail of multiple cashback offers. The best rates however are fixed rate mortgages which can have penalties if you switch within the fixed period. 

When can you switch mortgage?

You can switch mortgage for free if you are outside your fixed rate period, usually 3 or 5 years after you took out the loan. Even if you are in the fixed rate period you may be able to switch without penalty due to EU law. Ask your lender to calculate what ‘break out’ fee would apply in your particular case.  

Can you switch from a fixed rate mortgage?

You most certainly can switch from a fixed rate mortgage. A lot of people think this always incurs a fee, but due to an EU law banks can now only cover their costs with these fees. This means the fee the bank is allowed to charge depends on the difference between the rate when you fixed and the rate when you switch. You should ask your bank what fee would apply to you, more often than not it turns out there are no fees at all.

Can you switch mortgage if in negative equity?

If your loan is larger than the value of your property, switching can be tricky as the bank ‘backs’ the mortgage with the value of your house. It often makes sense to get an up to date valuation 

and then talk to an experienced mortgage broker about your options if you think you might be in negative equity.

How much will I save if I switch mortgage?

If you bought after 2008 you may be one of the 200,000 mortgage holders on rates of 4.2% APRC, meaning big savings if you switch mortgage. The average saving for these customers is around €20,000 over the duration of the mortgage. Even if you aren’t on a 4.2% rate, you will probably save thousands by switching. 

How does a mortgage calculator work?

The mortgage calculator uses the rate you can get. This usually depends on the size of the loan and the value of the property. A calculator selects the right rate for your particular loan to value and then applies this to work out the total cost of your repayments based on the length of mortgage you need.

How do you remortgage a house? 

To remortgage you take out a new mortgage with a new lender and use that to pay off your current lender. Usually to improve the rate or increase the mortgage amount. This known as mortgage switching in Ireland and remortgaging in the UK, but it is the same process. 

What is a remortgage?

A remortgage is a new mortgage on a property already with a mortgage. Usually that new mortgage is used to pay off the previous mortgage. Often the new mortgage is at a lower rate reducing the repayments and saving money for the mortgage holder. In Ireland this is often known as switching mortgage.

Why remortgage?

There are two main reasons why people remortgage or switch their mortgage.

  1. To reduce your repayments and save money. New customer rates in Ireland are almost half existing customer rates, so remortgaging can save mortgage holders significant amounts in interest payments
  2. To release equity tied up in your home. To allow investment or major purchases at mortgage interest rates which are lower than other types of loans.

Sources and next steps

You can calculate your own switching savings here or arrange a free no obligation consultation here.

You can read more about switching your mortgage and how much you could save here.

Information based on data from the CCPC, BPFI, CSO, MABS, Central Bank of Ireland.

Remortgage Ireland 2022, how to calculate your savings

remortgage
Savings tool

Remortgage Ireland 2022. When I headed up mortgage products at PTSB, the low numbers of people remortgaging in Ireland was a shock. Despite huge savings we still have one of the lowest rates of remortgaging on the planet.

Remortgaging is simply taking out a new mortgage to pay down your old mortgage, either to get a lower rate (known as switching) or to release cash tied up in your home (know as top up or equity release).

Anybody who took out a mortgage after 2008 and is no longer on an introductory rate is likely to save around €25,000 by remortgaging. Over half of all mortgage holders, that’s over 450,000 households, will save at least €5K.

Why is the remortgaging rate so low? Well, most people don’t know how much they can save or how to remortgage. By the end of this article you will be one of thew few lucky ones able to take advantage of the record low interest rates for those remortgaging right now!

Would I save by remortgaging Ireland 2022?

How much would I save by remortgaging Ireland 2022?

How much hassle and cost is remortgaging Ireland 2022?

How do I remortgage Ireland 2022?

In a nutshell – remortgaging Ireland 2022

What next? – remortgaging Ireland 2022 steps

Would I save by remortgaging Ireland 2022?

Almost certainly, interest rates are at a record low. Almost half of what the majority of people are paying.

If you are one of the 66%+ people who took out a mortgage after 2008 you should definitely look into remortgaging. This is because you’re probably on what lenders call a standard variable rate.

Irish Standard Variable Rates are some of the highest in Europe, at 4.2% [1]. Remortgaging to a new business rate will halve your interest rate to around 2%. 

If you’re one of the lucky few on a tracker mortgage with rates of around 1%, remortgaging almost certainly doesn’t make sense for you.

pig savins

How much would I save by remortgaging Ireland 2022?

If you are in the majority of Irish mortgage holders (66%+) who would save big by remortgaging,  working out exactly how much you would save isn’t complicated. 

Our handy mortgage repayment calculator automatically calculates the rates available at your LTV and estimates out how much you would save if you remortgaged to the best rate in the market.

If you want to see all the providers mortgage rates and your repayments for your LTV you can click the more information button.

The loan and term outstanding is easy to get as it is sent to you each year by your lender and doesn’t change that much each year. For people remortgaging last year the loan was €170,000 and the term 15 years on average. [2]

The more your home value rises the lower the rate you can get when you remortgage. This is what lenders call the Loan to Value ratio or LTV. If you’re not sure about your home value it’s easy to estimate. 

If you bought before the crash in 2008 your house is probably now worth about what you originally paid for it as the market has pretty much bounced back since then. 

If you bought after 2008 it should be worth roughly what you bought at, plus give or take an additional 4% for every year since you bought. So if you bought ten years ago you can add on 40%, nice!

How much hassle and cost is it remortgaging Ireland 2022?

Fortunately remortgaging Ireland 2022 isn’t like applying for a mortgage the first time around. You can now do it totally online and for free. 

There are still some upfront costs you have to watch out for, you still need to get a solicitor to handle your house deeds and help you with the new mortgage agreement. You will also need to get your house valued by an estate agent to help set your mortgage rate.

The higher the value of the house the lower the loan to value rate, which means less risk for the bank, which means a lower rate for you.

All in switching costs usually come in at around €2K including the VAT, way lower than the potential savings.

Even better lenders, who are keen for new business, often pay for your solicitors fees and to get your home valued and for you to use an online switching platform like moneysherpa’s.  AIB, KBC and Ulster all offer over €1,500 towards the cost of switching. BoI, PTSB and EBS all offer 2%+ cash back which often works out at even more.

Plus, they will handle all the paperwork for you.    

How do I remortgage Ireland 2022?

If you use a service like moneysherpa’s it is pretty straight forward. The main thing you need to worry about is what to do with the money saved. Seriously, do you?

1. Pocket the savings

If you bought after 2008, have around €170,000 and 15 years left on your mortgage you should be looking to save over €180 a month in saved interest payments.

That would be €32,400 saved over the 15 years, without including cash back payments if you keep switching. This can make a really positive difference to the household budget and give you some welcome financial wriggle room.

2. Pay off the mortgage earlier

This is personal favourite as you effectively double down with your savings.

If you use the €180 a month you save to pay off your mortgage quicker, you can reduce your term by over 10% without paying anymore than you do today. Saving you another €4,307.

That’s €32,400 + €4,307 = €36,707 saved.

3. Release more cash

If the lower monthly repayments from remortgaging mean you can borrow more, known as topping up your mortgage you could free up the cash tied up in your home. Because it’s secured on your home, a mortgage is one of the cheapest ways of securing credit. This can be a great way to fund big once off investments, but be careful if you might struggle to repay the higher amount. 

In a nutshell – remortgaging Ireland 2022

Remortgaging is a great way to save. 1 in 5 people will save over €25,000 and over half will save over €5,000 by remortgaging in Ireland 2021.

Rates are better than ever and many mortgage brokers will handle the paperwork for you for free as they are paid by the lenders. Talking to a broker can help you work out the best option for your own circumstances, whether you are looking to simply save, fix your rate or free up cash. 

What next? – remortgage Ireland 2022 steps

To check out how much you would save or what rates are the best for you, use our handy repayment calculator here.

You can find out more about switching costs here.

You can read more about mortgages or talk to one of our moneysherpa mortgage team here.

Mortgage switching costs, 4 great legal fees and cash back tips

best mortgage rate
mortgage switching costs

Don’t let mortgage switching costs put you off switching. Switching mortgage improves your financial shape more than anything else bar winning the Lotto. In fact, if you bought after 2008 you will probably save over €20,000 by switching to lower rates.

That said, there are some upfront costs you need to know factor in, read on to find out what they are, how you can cover them with cash back and why switching still makes loads of sense.

  1. What are mortgage switching costs and switching mortgage legal fees?
  2. How much are mortgage switching costs, switching mortgage legal fees and how much is it to switch?
  3. Which banks cover mortgage switching costs, switching mortgage legal fees and what options are there?
  4. Does it still make sense to switch after mortgage switching costs and switching mortgage legal fees?

What are mortgages switching costs and switching mortgage legal fees?

The good news is that switching your mortgage is much less stressful, easier and nowhere near as costly than buying a new home. That said there are still some solicitor and estate agent upfront mortgage switching costs.

Don’t panic though these costs are usually much less than the savings from switching and with some lenders switching mortgage legal fees and estate agent costs are fully covered with upfront payments.

There are no land registry or search fees involved with switching, but you will need a solicitor to do a bit of paperwork for you. Switching mortgage legal fees cover the solicitor costs to:

  1. Request your house deeds on behalf of the new bank from your current bank
  2. Review and advise you on the terms of the loan the new bank is offering you
  3. Witness and process the loan agreement for the new bank

These steps give everyone involved in the switch peace of mind, the bank knows your ownership of the property is kosher and you understand the deal being offered to you by the bank.

As well as switching mortgage legal fees, the other mortgage switching cost is a valuation fee. An estate agent selected by the bank will also value your home, this allows the lender to make sure you are on the right mortgage rate.

How much are mortgage switching costs, switching mortgage legal fees and how much is it to switch?

So how much are the mortgage switching costs all in?

Switching mortgage legal fees range from about €1,000 to €1,500 excluding VAT at 23%. Typically solicitors in Dublin will be at the higher end of the range.

moneysherpa have agreed an all in switching price of €1,200 including VAT for customers switching with one of their mortgage sherpas [1]. As well as the VAT this all in fee includes

  • Legal Fees
  • Bank Fees
  • Search/Land Fees
  • Declaration Fees

The other mortgage switching cost is the valuation fee which is much less at around €150.

So if you shop around, your all in costs should come in well below the €2,000 mark inc VAT.

Which banks cover mortgage switching costs, switching mortgage legal fees and what options are there?

Many of the lenders don’t want these costs to put off potential switchers so pay an upfront cashback incentive. These incentives usually cover mortgage switching costs including mortgage legal fees with cash to spare.

Ulster, AIB and KBC offer €1,500, €2,000 and €3,000 to cover mortgage switching costs.

PTSB, EBS and BoI offer 2% and 3% of the mortgage loan as cashback. So on a typical loan size of €200,000 that’s €4,000 to €6,000 into your hand, covering your legal fee costs and then some.

These deals are really useful if you can’t afford to cover the mortgage switching costs, but would save by switching. They also are a great option if you are looking to switch multiple times, as under EU law lenders can’t stop you taking more than one cash back.

That said, if you can afford to pay the mortgage switching costs upfront and are looking to get on the best long term deal, you should us the APRC rate rather than the cash back deal to choose your mortgage provider.

In our latest mortgage market review the  Avant Money 7 year fixed rate product came out on top, despite having no cash back at all. The 7 year fixed rate is €6,775 cheaper than the best cash back product available on a typical loan size of €200,000.

That’s why you are often better to ignore cash back if you can and cover the mortgage switching costs yourself if you can afford it.

Does it still make sense to switch after mortgage switching costs and switching mortgage legal fees?

If you bought your house after 2008 you are probably on rates of 4% plus.

The rates for switchers right now are at an all time low at around 2%.

This big difference in rate means that you would save over €25,000 by switching on a typical mortgage size of €200,000.

This means that even after you factored in the mortgage switching costs including the legal fees, you would save over €23,000 over the lifetime of the mortgage.

The really great news is that comparing rates and switching is easier than ever thanks to services like moneysherpa.

moneysherpa have agreed an all in switching price of €1,200 including VAT for customers switching with one of their mortgage sherpa. Our recommended solicitor panel cover the majority of the country and are experts in property conveyancing, so if you choose to work with one of our mortgage sherpa’s we will point you in the right direction.

You can calculate your savings and book an appointment online instantly here.

One of our mortgage sherpas will also handle all the paperwork and answer all of your questions for free.

You can read our founder’s latest piece for extra.ie on the big mortgage switch and how much you will save here. Or you can check out our handy switching mortgage guide here.

If you want to find out more about switching, you can read our ultimate guide to switching here or our review of the best mortgage deals here.

Dundalk mortgage switchers stand to save over €68 Million

dundalk mortgage switchers
dundalk mortgage switchers

New information available from the property price register shows that Dundalk mortgage holders could save over €68 million euros by switching their mortgages to lower rates.

With the gap between existing and new business rates wider than ever, there are record savings for Dundalk mortgage switchers.

Mortgage switcher rate savings

To compare different mortgage rates you are better off using the Annual Percentage Rate Change (APRC) rather than the headline rates according to the Consumer Protection Commission. The APRC includes hidden fees and the full cost of the mortgage, so gives a much better picture of real savings.

The average APRC for those who bought after 2008 is 4.2%, according to the Central Bank of Ireland [1], but new business APRC rates are now as low as 2.29%, according to the money guide moneysherpa.ie , that’s 1.91% lower.

This means Dundalk mortgage holders can almost half their rate by switching.

pig balance

One thing to watch out for though, before 2008 Dundalk mortgage holders are likely to be on a tracker mortgage. These mortgages have an APRC of around 1%, so it is unlikely you will save if you bought before then.

How many Dundalk mortgage switchers will save?

According to the property price register [2] just under four hundred houses are sold in Dundalk every year. Since 2008 almost 5,500 homes have been sold in and around Dundalk.

Just over of a third of houses sold are in new developments built since 2008, these include:

  • Rathmount
  • Earlsfort
  • Marlmount
  • Mount Hamiliton
  • Lis na dara
  • Saltown
  • Castleross

On average, according to the Central Bank, half of those sales are funded with a mortgage, this means there are around 2,500 Dundalk mortgage holders stand to save by switching.

How much is the average saving for mortgages in Dundalk?

According to the Banking and Payments Federation Ireland (BPFI) [3], switchers have an average mortgage of €242,000 and 15 years of payments left.

Based on currently available new business rates, Dundalk mortgage holders would save over €25,000 each and €62.5m in total if they switched right away.

How do Dundalk mortgage holders switch?

Daragh Head Shot

The good news is switching isn’t complicated and is usually free according to Daire McConnon of moneysherpa.ie.

“The banks are very keen for new business at the moment, so most cover any costs involved. The process is also much simpler than getting a new mortgage as you already have a home loan. “

“If you get a local broker or switching service to help you, they will handle all the paperwork for you and they are paid for by the lenders so are free to use .”

In a nutshell – Dundalk mortgage switcher savings

The fall in new business mortgage rates has made it attractive for the people to switch their mortgage.

There are over 2,500 Dundalk mortgage holders who bought after 2008 will make big savings by switching.

Switching isn’t complicated and a local broker can help you switch by handling the paperwork for you.

Switching mortgage Ireland 2022? How to guarantee great savings

shutterstock 1156208635 scaled
mortgage switching ireland 2022

Switching mortgage Ireland 2022. As someone who used to be responsible for mortgage products at one of Ireland’s largest mortgage lenders PTSB, the low numbers of switchers in Ireland always surprised me. 

Anybody who took out a mortgage after 2008 and is no longer on an introductory rate is likely to save around €25,000 by switching. That’s over two hundred thousand Irish households. Over half of all mortgage holders, 450,000 households, will save at least €5,000 by switching mortgage Ireland 2021.

These are some of the largest savings in Europe, yet Irish mortgage holders switch at half the rate seen in other European countries.

The key reason for Ireland’s low mortgage switching rate is that most people don’t realise how much they can save or how easy it is to switch these days.

Read on to find out how much you would save by switching mortgage Ireland 2021, plus everything you need to know on how to switch mortgage and get saving.  

Would I save by switching mortgage Ireland 2022?

How much would I save by switching mortgage Ireland 2022?

How much hassle and cost is switching mortgage Ireland 2022?

How do I switch mortgage Ireland 2022?

In a nutshell – saving & switching mortgage Ireland 2022

What next? – simple switching mortgage Ireland 2022 steps

Would I save by switching mortgage Ireland 2022?

Almost certainly, this is because your interest rate drives how much you save and there is a huge difference between existing and new business interest rates. 

If you are one of the 66%+ people who took out a mortgage after 2008 and aren’t on a introductory fixed rate you should definitely look into switching. This is because you’re almost certainly on what lenders call a managed variable rate or standard variable rate.

These interest rates remain some of the highest in Europe, at an average of 4.2% [1]. Switching to a new business rate with a new mortgage lender will halve your interest rate to around 2%. 

But, if you are one of the lucky people with a tracker mortgage, switching almost certainly doesn’t make sense for you. Tracker mortgages were sold between 2001 to 2008 and ‘track’ the ECB base rate. If you are on a tracker your interest rate is probably around 1%, much better than any rate available in the market today.

Irish lenders have kept old customer rates high to pay for the fall out of the financial crash and the cost of funding the tracker mortgages. But, due to international banks entering the market they had to lower new customer rates.

This difference, between the old customer and new customer rates, is why switching mortgage Ireland 2022 delivers such a big saving. 

So will you save? To keep things simple we have grouped mortgage holders into three big groups.

Introductory rate (2%), the 7% of people with fixed rate (new in last 1-3 years) – Stick

Tracker rate (1%), the 25% of people who bought between 2001-2008 – Stick

Standard rate (4%), the 66%+ of people who are not on an introductory or tracker rate – Switch

You can check for certain which interest rate you are on, by digging out your annual mortgage statement or by putting your monthly repayments into our handy calculator below. 

How much would I save by switching mortgage Ireland 2022?

If you are in the majority of Irish mortgage holders (66%+) who would save big by switching,  working out exactly how much you would save isn’t complicated. 

You just need to know 4 things. 

1. current monthly repayment – How much does your mortgage cost every month?

2. home value – How much is your home worth today?

3. loan needed – How much do you still have left to pay on your current mortgage?

4. term needed – How many years do you have left to pay on your current mortgage? 

Our handy mortgage repayment calculator takes these four things, automatically calculates the rates available at your LTV and estimates out how much you would save if you switched to the best rate in the market.

The loan and term outstanding is easy to get as it is sent to you each year by your lender and doesn’t change that much each year. For people switching last year the loan was €170,000 and the term 15 years on average. [2]

The more your home value rises the lower the rate you can get when you switch. This is what lenders call the Loan to Value ratio or LTV. If you’re not sure about your home value it’s easy to estimate. 

If you bought before the crash in 2008 your house is probably now worth about what you originally paid for it as the market has pretty much bounced back since then. 

If you bought after 2008 it should be worth roughly what you bought at, plus give or take an additional 4% for every year since you bought. So if you bought ten years ago you can add on 40%, nice!

How much hassle and cost is it switching mortgage Ireland 2022?

Fortunately switching mortgage Ireland 2022 isn’t like applying for a mortgage the first time around. You can now do it totally online and for free. 

Lenders, who are keen for new business, pay to get your home valued and for you to use a broker or an online switching platform like moneysherpa’s.  

Plus, if you go for an online switching platform or a broker, they will handle all the paperwork for you and get your home valued.  

Sometimes if your income or the value of your property has reduced or other commitments have increased lenders won’t allow you to switch your mortgage. This is rare though as in most cases your home value will have increased and your loan value decreased as you made your monthly payments. 

Don’t worry though, our online mortgage application tool checks this out automatically, so we can help you get in better financial shape or find a more suitable lender if needed.    

How do I switch mortgage Ireland 2022?

You’re probably over the hump already if you have worked out your savings and found the best rates using our repayment calculator. At this point you’re only 4 steps away from cashing in on your mortgage switching savings.

couple 2

1. Apply

This takes less than 5 minutes using our online application tool.

2. Assess

Our moneysherpa mortgage team will then run the numbers. Including getting your home valued by a licensed local estate agent to get you the best rate for your LTV. 

3. Offer

Then if all looks good, we will email you a loan offer.

4. Draw down

If you are happy with your new deal, we pay off the mortgage you have with your current provider and get your new mortgage up and running.

In a nutshell – switching mortgage & saving Ireland 2022

1 in 5 Irish mortgage holders will save around €25,000 and over half of all Irish mortgage holders will save over €5,000 by switching mortgage Ireland 2022.

With changes in regulation and new online platforms available it’s now very straightforward to switch and save. 

Switching is free with both brokers and online platforms able to handle the paperwork for you.

What next? – simple mortgage switching Ireland 2022 steps

To check out how much you would save or what rates are the best for you, use our handy repayment calculator here.

To help you compare and choose the best rate for you the best mortgage deals on the market are here.

Get Your Free
Mortgage Switching Guide!

Save big with our 26 page ultimate pdf guide and insider tips delivered straight to your inbox