Surge in Mortgage Holders Switching

By Conall O Fatharta

 

As many as 2,000 mortgage holders may switch lender in the first six months of the year as brokers experience a surge in consumers looking to avail of cheaper rates.

It has predicted that switching will experience double-digit growth in the first six months of the year, as an increasing number of mortgage holders learn of the option which could potentially save them anywhere in the region of €311 per month and €112,000 over the lifetime of an average €350,000 mortgage.

A total of 1,319 people switched or re-mortgaged in the first half of 2017. However, the broker has forecast this number will grow to at least 1,500 — but possibly to 2,000 — during the first six months of 2018.

Figures from the Banking and Payments Federation of Ireland for the third quarter of 2017 show that just 777 borrowers switched or remortgaged during the period, although the numbers switching are up 15% on the year.

It outlined a sample case where a couple lowered their monthly repayments by €300 and saved interest of €99,000 over the remaining term of their mortgage.

Head of Credit at MyMortgages.ie Joey Sheahan said there were a number of factors that have led to the surge in inquiries they have experienced in the first few weeks of 2018.

“We put this down to a number of factors. As a result of recent media reports, anecdotal evidence suggests that an increasing number of mortgage holders seem to now be aware of the fact that switching lenders to avail of a better rate might be a viable option for them.

“Towards the end of last year myself and others in the industry endeavoured to highlight the fact that more mortgage holders can and should switch lender to reduce their monthly payments.

“It was also revealed that changes in the way lenders operate have meant that many only charge a very small, if any, break out fee from fixed rate mortgages, so what was once a significant monetary hurdle to switching is now obsolete in many cases,” he said.

Mr Sheahan said recent proposals put forward by Fianna Fáil to ban bank incentives to switch will lead to an even greater level of activity as people try to “get in” before any such legislation is introduced.

“Currently the mainstream lenders are offering sizeable cash incentives to certain cohorts of the mortgage market to encourage them to move lenders.

“The merits of this are up for debate but Fianna Fáil are putting forward a proposal to ban these cashback offers.

“If accepted, the Bill could come into force by the summer, so we are going to see large swathes of people who might have, up until now, been on the “switching fence”, make moves to avail of these offers before they are taken off the table,” he said.

Meanwhile, Finance Minister Paschal Donohoe has launched the second phase of the Switch Your Bank campaign.

The campaign directs people to www.switchyourbank.ie, and encourages consumers to shop around for financial products and services.

Source: https://www.irishexaminer.com/ireland/surge-in-mortgage-holders-switching-466129.html

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


 

MyMortgages.ie Dublin Cork

 

Households are finally cottoning on – switching your mortgage can save you €100,000. Brokers MyMortgages.ie report a three-fold increase in switching and forecast double digits growth in the first half of 2018. One reason behind the rush is borrowers want to avail of cash incentives for switching in case they are banned, as Fianna Fail proposes. The brokerage firm cities one couple who had a €390,00  (LTV <80%) mortgage over 28 years at a variable rate of 4%. They switched to a four-year fixed rate of 2.6% and  lowered their repayments by €300 – saving themselves €99,000. You can save €311 per month and €112K over an average €350K mortgage, said Joey Sheahan, of MyMortgages.ie

 

Source: Mail On Sunday  21/01/2018

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


Mortgages gold rush on the cards as ‘cash-back’ deals could be banned

 

Christian McCashin

 

Fears that ‘cash-back’ mortgage offers will be banned this summer is expected to cause a surge of homeowners switching their mortgage.

Fianna Fáil is looking to ban the offers, which give borrowers a return of around 2% of the mortgage back in cash.

This would force the banks to compete on interest rates alone, which is seen as better value in the long term.

 

Fianna Fail’s spokesman for finance Micheal McGrath has proposed an amendment. Pic: Collins

The Variable Rate Mortgages Bill would give the Central Bank the power to limit interest rates on mortgages, although a warning by the Attorney General that it might not be constitutional will be looked at. However, Fianna Fáil finance spokesman Micheal McGrath has proposed an amendment to it banning mortgage cashback deals. The offers, where a bank hands over a percentage of the loan in cash on drawdown, have become increasingly popular and are used by banks to drive up their market share, without having to cut mortgage rates.

Bank of Ireland offers homebuyers and mortgage-switchers 2% back on their mortgage as cash, with another 1% available for the bank’s current-account holders.

The EBS, which is part of the AIB group, offers €2,000 back in cash, and Permanent TSB offers not just 2% cash back on the value of the mortgage, but also 2% of the monthly mortgage repayment back in cash every month.

Ulster Bank offers a flat payment of €1,500 towards legal fees. ‘This amount is fixed and will not change if your legal fees are higher or lower,’ it says.

Struggling homeowners’ campaigner David Hall, of the Irish Mortgage Holders’ Organisation, welcomed the proposal to scrap the cash-back offers. ‘Ultimately you’re paying for it. All of these things cost money, there’s no such thing as a free lunch in banking,’ he said. ‘You might get a couple of quid now but ultimately it’s being added on to the bottom line of variable rates, that’s paying for it.

‘So you’ll never get variable rates lower if you keep having these scams. By scrapping them they’ll compete on the straight-forward rate, there’s no misinterpretation, no sneaky language, very straight forward, you’re just going on straight, raw rates,’ he said.

 

Joey Sheahan, of MyMortgages. ie, believes a number of factors have led to a surge in enquiries in the past few weeks. ‘Currently the mainstream lenders are offering sizeable cash incentives to certain cohorts of the mortgage market to encourage them to move lenders,’ he said. ‘The merits of this are up for debate but Fianna Fáil is putting forward a proposal to ban these cash-back offers.

‘If accepted, the Bill could come into force by the summer, so we are going to see large swathes of people – who might have, up until now, been on the “switching fence” – make moves to avail of these offers before they are taken off the table.’ Brokers forecast the switcher market alone will experience double-digit growth in the first half of the year, as an increasing number of mortgage-holders learn of the option which could potentially save them anywhere in the region of €300 a month or €112,000 interest over the lifetime of a €350,000 mortgage, about a third of the loan’s value.

In the first half of last year 1,319 people switched or re-mortgaged but that is expected to grow to at least 1,500. That figure could go as high as 2,000 during the first six months of this year.

Switching and remortgaging saw the largest increase in transactions, up 44% on 12 months earlier, the most recent figures show, up from 309 in November 2016 to 445 in November last year, an extra 136 mortgages.

Mr Hall said mortgage-holders should take up the cash-back offers while still available but warned: ‘People should ensure that they benefit from it, that there’s nothing hidden, that there’s no disadvantage with the mortgage rate.

‘Also, all brokers should declare what commission they’re getting so the public understand that if you’re switching from Bank of Ireland to AIB and AIB are paying the broker €500 that you’re told that in advance.’

 

Source: https://extra.ie/2018/01/24/news/irish-news/mortgages-gold-rush-cash-back-deals-banned

 

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 

 

 


 

MyMortgages.ie Dublin Galway

 

Grainne McGuinness.  Evening Echo

 

A Cork broker has reported a spike in calls from mortgage holders interested in switching their homes loan in the first weeks of January.

 

Joey Sheahan, Head of Credit at MyMorgages.ie on South Mall, believes a number of factors have led to the influx in enquiries. “We have experienced a three- fold increase in the volume of enquiries since January 2,” he said. “An increasing number of mortgage holder seem to know switching lenders to avail of a better rate might be a viable option. Towards the end of last year, myself and others endeavoured to highlight the fact that more mortgage holders can and should switch lender to reduce their monthly payments. It was also revealed that changes in the way lenders operate have meant that many only charge a very small, if any, break out fee from fixed-rate mortgages, so what was once a significant monetary hurdle to switching is now obsolete in many cases.”

The brokers expect that recent proposals put forward by Fianna Fail to ban incentives to switch will lead to an even greater level of activity as people try to ‘get in’ before any such legalisation is introduced.

“Currently the mainstream  lenders are offered sizable cash incentives to certain cohorts of the mortgage market to encourage them to move lenders,” Mr Sheahan said.

“The merits of this are up for debate but Fianna Fail is putting forward a proposal to ban these cashback offers. If accepted, the Bill could come into force by the summer, so we are going to see large swathes of people who might have, up until now,  been on the ‘switching fence’, make moves to avail of these offers before they are taken off the table.”

MyMortagges.ie put forward a sample case to highlight the amount mortgage-holders can save by moving lender and reducing their rate. They gave the example of a couple with €390,000 (LTV <80%) outstanding over 28 years at a variable rate of 4% switching to a four-year fixed rate of 2.6% which lowered their monthly repayments by €300 and saved interest of €99,000 over the remaining term.

“If this couple were to keep their monthly repayments at the same level as the  higher interest rate, they could reduce the term of their mortgage by almost six years.” Mr Sheahan said. We are seeing a lot of borrowers look at a hybrid of reducing of reducing the monthly repayment to gather with the term reduction.”

While the potential savings are impressive, consumers should be aware that switching a mortgage does not involve more work than switching other financial products. In 2017 the Competition & Consumer Protection Commission (CCPC) published a Mortgages Opinion Paper, which included research into switching.

“Mortgage switching is not something you are going to do repeatedly,” then CCPC Director of Communications Aine Carroll said. Consumers should think of it as getting a new mortgage, which it basically is. That way you will be more accepting of the level of paperwork involved. And at least it is getting a new mortgage without the stress of buying a new house. So yes, it is a lot of work, but it comes with a big reward, potentially saving thousands.

 

Source: Evening Echo 18/01/2018

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


 

Savings of around €300 a month have resulted in a surge in mortgage holders changing lender, experts have reported. One broker yesterday told how enquires about switching had trebled this month – and predicted the market will see double-digit growth before the end of June.

Joey Sheahan. Of MyMortgages.ie, credited news coverage of cheaper deals that can save around €112,000 over the lifetime a typical €350,000 home loan.

He said: “Mortgage holders seem to now be aware of the facet that switching lenders to avail of a better rate might be an option for them.”

 

Source: The Sun (Eire)  17 /01/2018

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


MyMortgages.ie Cork Dublin
Fiona Reddan

Last year the Competition and Consumer Protection Commission warned that cashback offers might not make financial sense in the long term because of the higher rates often also charged.

New mortgage rates bill could see popular cash back offers banned – but home owners may benefit from pressure on rates

An amendment to a bill aimed at limiting interest rates on mortgages could see banks also banned from offering customers cash back on their mortgages. If enacted, it is hoped that banks will have to compete on the basis of their interest rates, rather than the selection of incentives they can offer potential customers.

According to Michael McGrath, finance spokesman with Fianna Fail, the Variable Rate Mortgages Bill, which he proposed in 2016 to give the Central Bank the power to limit interest rates on mortgages, is to be subject to an expert impact assessment. This comes on the back of the Attorney General warning that the bil may be unconstitutional.

The expert review is expected to take a couple of months, although Mr McGrath said he is “confident that the bill is constitutional” and that it will go ahead as planned.

In the meantime, Mr McGrath has proposed an amendment looking to see the practice of cashback on mortgages being banned. In recent years this has become an increasingly popular tool used by banks to drive up their market share, without having to cut mortgage rates. Bank of Ireland for example offers home buyers and switchers alike 2 per cent back on their mortgage as cash,with another 1 per cent possibly available for current account holders with the bank, while AIB subsidiary EBS offers €2,000 back in cash, and Permanent TSB offers not just a 2 per cent cash back on the value of your mortgage, but also 2 per cent of your monthly mortgage repayment back in cash every month.

“Customers like the attraction of cash back sums, but they can end up paying far more over the long term in terms of higher interest rates,” Mr McGrath said, adding that the amendment will initially focus on cashbacks, but may also consider other incentives such as money back on legal fees.

Last year the Competition and Consumer Protection Commission warned that cashback offers might not make financial sense in the long term becaue of the higher rates often also charged.

If the amendment is put forward and the bill is enacted, Mr McGrath said that banks will have to compete solely on interest rates, and not on incentives such as these.

“I am confident that if these cash back promotions are removed from the market, it will result in downward pressure on rates,” he said.

Of course Fianna Fail will need Dail support for the Bill, and as Mr McGrath said, “that will be tested in the coming weeks”.

Switch now to save

If this ban does materialise, many homeowners may rush to avail of the deals while they’re still available.

In recent years, Irish homeowners have appeared loathe to switch; figures from the Banking and Payments Federation of Ireland for the third quarter of 2017 show that just 777 borrowers switched or re-mortgaged, during the period, although the numbers switching are up 15 per cent on the year.

Already this year however, Joey Sheahan, head of credit at Cork-based MyMortgages.ie, has seen a jump in inquiries, and he expects the proposals to ban bank incentives will lead to an even greater level of activity as people try to “get in” before any such legislation is introduced. This means that the number switching could go as high as 2,000 during in the first six months of 2018.

While Mr Sheehan concedes that the merits of the cashback offers available “are up for debate”, he expects homeowners to make moves to avail of these offers “before they are taken off the table”.

Indeed while the offers can seem attractive, for many homeowners the financial gains of securing a lower interest rate can far outweigh any cash back offers.

This means that irrespective of the cashback offers, switching in itself often makes an awful lot of sense, particularly given that rates have fallen over the last 24 months. Mr Sheahan for example, says that someone on a €350,000 mortgage could save anywhere in the region of € 311 per month and € 112,000 over the lifetime of this 30-year mortgage.

Mr Sheahan gives the example of a couple with a € 390,000 mortgage (LTV>80%) outstanding over 28 years at a variable rate of 4 per cent, who switch to a four year fixed rate of 2.6 per cent. This lowers their monthly repayments by € 300 and saved interest of € 99,000 over the remaining term, while also cutting almost six years off their mortgage term.

 

Source: https://www.irishtimes.com/business/personal-finance/are-we-going-to-say-goodbye-to-cash-back-mortgages-1.3357467

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


MyMortgages.ie Dublin Cork

MORTGAGE cashback offers look set to be banned in a move that would hit first-time buyers and switchers hard.

Banks have been accused of using cashback incentives to camouflage their exorbitant mortgage rates.

Now a Fianna Fáil bill that will ban the practice of banks offering cash incentives to first- time buyers and movers could be law by the summer.

The Central Bank and the Competition and Consumer Protection Commission are also both opposed to cashback offers, as they see them as a device by banks to avoid cutting interest rates.

Mortgage rates in this country are a multiple of those paid by borrowers in the rest of the eurozone.

Banks, including Bank of Ireland, Permanent TSB and EBS, offer cashback of 2pc of the value of the mortgage drawn down to switchers and first-time buyers.

This works out at €2,000 for every €100,000 borrowed.

Separately, it emerged that fast-track planning applications for the development of more than 4,000 new homes will be decided within weeks.

Charlie Weston and Ronald Quinlan

Source: https://www.pressreader.com/ireland/irish-independent/20180113/284614602943074

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601
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MyMortgages.ie Dublin Cork

 

The home remodelling and design platform Houzz recently released its top 10 home-design-trend predictions for the new year. The site’s forecast, derived from conversations with industry experts as well as trends noticed among its 40 million monthly users, gives a glimpse of what we might soon see in our homes – and on our social media feeds.

Houzz editor and writer Mitchell Parker spoke about Houzz’s conclusions, and why these particular trends are gaining traction.

1. More colour in kitchens

Although white will always be a classic colour for kitchen design, homeowners are shying away from bland hues and injecting rich colours, such as warm wood tones (eg, mahogany) and neutrals (eg, greys and blues), into the space to give it a warm, fresh and unique feel.

Social sites such as Instagram, Pinterest and Houzz have exposed homeowners to “what’s possible, what looks fun and what they can personalise themselves,” Parker said, and have encouraged them to be bigger risk-takers when it comes to colour.

2. Rich colours throughout the home

MyMortgages.ie Dublin Cork

Warm greys paired with “camel, rust, tobacco [and] brown-blacks,” as well as earthy reds and yellows, are expected to edge out cooler neutrals in the coming year.

“These rich colours are not like the avocado green and mustard colours from the 1970s. They won’t date quickly,” Parker said. “They are rich, moody and work well in home environments where you want a soothing and diverse mix of colours and textures.”

3. No more white or stainless steel sinks

The modern Farmhouse style will continue to flourish in 2018 and spread to the bathroom. Parker predicts that there will be “more concrete, stone, copper and granite composite sinks in darker hues of grey, bronze or black”.

“As people set out to personalise their spaces, they are kind of bored with seeing a white sink all of the time,” Parker said. The rustic home decor trend is “waking people up to trying something new and different”.

It “harkens back to simpler times,” he said, “and that feeling of simplicity can be very calming in a home environment”.

4. Florals

MyMortgages.ie Dublin Cork

The tropical palm print may have flooded your Instagram feeds over the past 12 months, but people aren’t yet tired of eye-catching, oversized graphic florals. Houzz expects even more interpretations of overscaled floral patterns, in high-contrast colours, in 2018.

5. Concrete accents

Step aside, white marble – it’s concrete’s time to steal the spotlight. “It’s a really affordable, high-impact design element,” Parker said.

Already used for floors and countertops, the versatile, accessible material is now being utilised in more interesting and unexpected ways, including in home accessories, such as pendant lighting and furniture.

“We’re seeing new uses [of it] on all kinds of hardscaping surfaces,” Parker added. “On anything you can think of, people are casting it.”

6. Vintage lighting

MyMortgages.ie Dublin Cork

Vintage light fixtures, including sconces, lanterns, pendants and chandeliers, are making a comeback as crafty home do-it-yourselfers outfit retro fixtures with new technology.

“I find that vintage fixtures are often better-made than new fixtures, I prefer their patina, and I appreciate the distinctive, one-of-a-kind quality they add to rooms,” designer and NBC’s Today show style expert Elizabeth Mayhew wrote in The Washington Post. “Online shopping platforms such as 1stDibs, Etsy and One Kings Lane have made it easy to find everything from an early 20th-century French crystal chandelier to a Sixties Sputnik.”

7. Millwork feature walls and detailing

The ease and availability of millwork has helped increase its demand and popularity in the design world. “Before, if you wanted to find millwork or reclaimed wood, you really had to know where to go and find somebody who was good at working with it,” Parker said. “Now, you can DIY it, and put it right against the drywall behind your bed to create a feature wall.”

8. Trough or bucket sinks

MyMortgages.ie Dublin Cork

Another sign the modern Farmhouse trend isn’t going anywhere soon: Houzz predicts that deep, wide and durable trough and bucket sinks will continue to be popular in 2018. Used commonly in busy laundry rooms and kids’ bathrooms, these long, narrow and low-maintenance sinks can help create a rustic aesthetic and maximise minimal space.

9. Wallpaper-like backsplash

Looking to refresh your kitchen or bathroom? Stay away from subway or hexagon tiles and instead consider contemporary tiles that look like wood, concrete, resin, fabric or even wallpaper.

10. Casual and calm modern bedrooms

MyMortgages.ie Dublin Cork

 

Homeowners are running with the “less is more” notion in the master bedroom and opting for more modern and minimalist furnishings. Instead of bold and busy colours, soothing, neutral colour palettes are expected to reign supreme, along with soft fabrics and simple furniture pieces.

© The Washington Post

 

Source: http://www.independent.co.uk/life-style/design/ten-home-design-trends-to-expect-in-2018-a8138011.html

 

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 

 


 

MyMortgages.ie Dublin Cork

 

Time spent reducing your debts, bills and tax will be the most profitable time you spend this year, writes John Hearne.

A credit union survey suggests it takes an average of eight-and-a-half weeks to get back to normal after the annual overspend.

If you’re carrying a large credit card balance into the new year, take a look at the range of providers that offer low-interest rates on balance transfers.

Permanent TSB’s ICE credit card will give you 0% on balance transfers for the first six months, as will Avantcard’s Mastercard and KBC’s Cash Reward card.

Bank of Ireland goes one better with its Classic card, which offers seven months of zero interest.

If you think it’s going to take a little longer to clear the overhang, Ulster Bank and AIB offer 3.9% and 3.83%, respectively, on balance transfers for the full 12. Be warned, however. Credit card rates go as high as 22.9% the second the promotional period is over, and if you miss a payment date, the penalties can be very ugly.

For credit card switchers, the key thing is to make sure to close your old account. When you do, you will be hit straight away with stamp duty of €30. In order to avoid being charged again on your new account, get a letter of closure from your old issuer which you then send to your new credit card company.

Credit card switching won’t work for everyone. If the sum owed is too large, it will make more sense to get a short-term loan from the bank or credit union. Check out the financial comparison section of the Competition and Consumer Protection Commissioner site, cpcc.ie.

Whatever you do, do not try to bridge the gap with a loan from a moneylender. Just before Christmas, Provident, one of the biggest licensed moneylending companies, did a festive mailshot offering loans of between €100 and €600, to be repaid over either six or twelve months, at an APR of 187.2%.

For those struggling with debt, the first call should be to Mabs, the money advice and budgeting service. Once there’s a plan in place for dealing with general debt, the next thing to consider is the mortgage. If you’ve got a tracker, great. Do nothing.

Tracker mortgages are perhaps the only positive legacy of boom-era banking. The ongoing tracker mortgage scandal, in which a number of banks unethically forced customers off trackers, is ample evidence of the fact that offering them in the first place has been a source of deep regret for bankers.

If, however, you are on a variable rate mortgage — and even if you are on a fixed rate contract — chances are there are thousands to be saved by switching provider.

Recent figures illustrate this point neatly. Suppose you’ve got a 30-year mortgage worth €250,000, which carries a rate of 4.2%. Your monthly payments will be €1,222, while over the life of the mortgage you will pay back a total interest bill of €190,115. That’s nearly €200,000 in interest to the bank. To look at it another way, on these terms, you will pay back the principal you borrowed, along with 76% of that figure over the life of the loan.

Switching mortgage provider and securing a new rate of 2.75% will reduce your monthly repayments to €1,020, while the total interest bill over the life of the mortgage will fall to €117,417, a saving of €72,698.

“If you are a fixed or variable rate mortgage customer you are definitely of interest to other mortgage lenders,” says Joey Sheahan of MyMortgages.ie. “This means you could potentially save thousands of euro over the remaining term of your mortgage by switching mortgage provider. Due to the current low cost of funds available for banks, in many cases, there is no early breakage fee for exiting a fixed rate. You just have to call your bank to check this.”

In the last three months, there have been 10 rate adjustments to the mortgage market as competition returns in earnest. Meanwhile, lenders are offering a range of cash incentives to new mortgage customers.

Bank of Ireland will hand back 2% of the value of the mortgage after drawdown. In addition, if customers have a current account with the bank when they apply for a new mortgage, they can qualify for a further 1% cashback after five years.

Permanent TSB and EBS are also offering 2% cashback to all new mortgage customers, while Permanent TSB recently added a further incentive: It will pay 2% of the monthly mortgage repayment into “a permitted PTSB account” at the start of each month.

KBC is offering €3,000 towards legal and other fees. There are also preferential rates for current account holders, together with a 50% reduction in the cost of home insurance for the first year.

AIB will give you €2,000 within two months, while Mortgage Store and Ulster Bank will give you €1,500 towards your expenses. Don’t get carried away by these offers. They will allow you to take care of the legal fees that are inevitable when you change mortgage provider, but when it comes to assessing the financial benefits of switching, the impact of introductory offers is negligible. Look instead at the rates and the payback timeline.

The other point to make here is that switching is easier than you think. A Central Bank survey released earlier this year found that 44% of people hadn’t switched because they thought it would be too complex. However, of those that did take the plunge, a huge percentage said that it was a positive experience.

If you switch mortgage, switching energy and telecoms providers will be a walk in the park. Mark Whelan at independent switching site bonkers.ie says that energy switchers save €337 per year on average, while broadband, TV, and phone switchers can save up to €300. Go to one of the switching sites, like bonkers.ie or switcher.ie, where the whole process can be effected in minutes.

No one likes thinking about tax, but reviewing your tax affairs is almost always worthwhile. If you’re a PAYE worker, there are a range of credits available that don’t get factored into your salary automatically.

In fact, Taxback, the tax repayment company, says that the average tax refund it secures for PAYE workers is €995. You don’t, however, need to hire anyone to get what you’re legally entitled to. A few receipts and a little form filling is usually all that’s required.

Taxback has estimated that taxpayers are forgoing as much as €150m in unclaimed medical reliefs, while estimates would also suggest that tax breaks on tuition fees are being left unclaimed by thousands of taxpayers. PAYE workers can claim both through Revenue’s online portal, while self-employed taxpayers file the claim in end-of-year returns.

You don’t have to submit any receipts, but you do have to hold on to them in case you have to prove your claim. That’s four categories. General debt, mortgage debt, household bills, and tax. Time spent reducing these will be the most profitable time you spend this year.

Source: Irish Examiner https://www.irishexaminer.com/breakingnews/business/cutting-the-monthly-mortgage-bill-is-easy-and-profitable-821301.html

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601
MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 

MyMortgages.ie Cork Dublin

 

John Hearne looks at why the right mortgage switch can deliver you up to €3,600 in annual savings

Mortgage brokers MyMortgages.ie reveals that switching mortgage providers can save homeowners anywhere between €1,200 an €3,600 per year.

Joey Sheahan is head of credit with MyMortgages.ie. He says that despite the fact that the mortgage payment is the most people’s biggest expenditure, it’s something that people don’t pay enough attention to when it comes to getting the best value on the market.

He says, “Many people assume that once they’ve taken out a mortgage with a lender for 20, 25 or 30 years, then that’s the end of the decision process. But mortgages are just like any other financial product – they should be reviewed every three years to ensure you are not paying over the odds.”

Mr Sheahan says he has no sympathy for borrowers who complain that they are paying high rates.

“There are lots of homeowners needlessly paying more than 3.6% in interest, but a large portion of people can easily switch lenders once they have 10% equity in their property.”

“Lots of people are struggling financially under the weight of these rates. We deal with clients daily who are unaware that switching could even be an option for them – many believe that they are simply locked in to the contract with their current lender. And those who have heard of switching, most think it’s too much hassle.”

Research two years ago from the Central Bank found that half a million mortgage holders – that’s 21% of the market – could save money by switching. The reason it’s not more is explained by the presence of tracker mortgages in the Irish market. These are mortgages that track the rate offered by the European Central Bank rate, which, remains below zero.

Tracker mortgages are perhaps the only positive legacy of the boom-era banking. The ongoing tracker mortgage scandal, in which a number of banks illegally forced customers off trackers, is ample evidence of the fact that offering them in the first place has been a source of deep regret for bankers.

If you have a tracker, do not be tempted to give it up.

In a 2015 Central Bank study, 33% of the sample total could make savings by switching, but were ineligible because of small loan values, the existence of an arrears balance on the account in the previous 12 months, and /or loan-to-value ratios of over 90%.

Joey Sheahan says that the Central Bank recently drew attention to the value to mortgage holders of switching by proposing the introduction of statutory requirements to support consumers considering switching their mortgage.

“If we go by the Central Bank’s estimates, then many more people, maybe as many as two in five mortgage holders throughout the country should be switching to another lender, yet switching made up just 3.3% of the mortgage market in 2014 and while this figure has certainly increased since then, it is nowhere near it should be.”

As competition continues to heat up, most lenders are now offering a range of cash incentives to new mortgage customers.

Bank of Ireland will hand back 2% of the value of the mortgage after draw down. In addition, if a customer has a current account with the bank when they apply for a new mortgage, they can qualify for a further 1% cash back after 5 years.

Permanent TSB and EBS are also offering 2% cash back to all new mortgage customers, while PTSB recently added a further incentive. They will hand back 2% of the monthly mortgage repayment, so long as the customer open a Permanent TSB Explore Account.

KBC is offering €3,600 towards legal and other fees if you draw down a mortgage with the bank before the end of next month. There are also preferential rates for the current account holders, together with a 50% reduction in the cost of home insurance for the first year.

AIB will give you €2,000 within two months while Mortgage Store, Pepper Money and Ulster Bank will give you €1,500 towards your expenses.

Don’t get carried away by these offers. They will allow you to take care of the legal fees that are inevitable when you change your mortgage provider, but when it comes to you assessing the financial benefits of switching, the impact of introductory offers is negligible.

Look instead at the rates and the payback timeline.

Figures from MyMortgages.ie illustrate this point neatly. Suppose you’ve got a 30-year mortgage on €250,000, which carried a rate of 4.20%. Your monthly payments will be €1,222, while over the life of the mortgage you will pay the bank the principal you borrowed, along with 76% of that figure over the life of the loan.

Switching mortgage provider and securing a new rate of 2.75% will reduce your monthly repayments to €1,020, while the total interest bill over the life of the mortgage will fall to €117, 417, a saving of €72,698.

Fixed and variable.

“If you are a fixed or variable rate mortgage customer you are of interest to other mortgage lenders,” says Joey Sheahan. “This means you could potentially save thousands of Euro over the remaining term of you mortgage by switching mortgage provider. Due to the current low costs of funds available for banks, in many cases there is no early breakage fee for exiting a fixed rate. You just have to call you back and check this.”

To begin the switching process, the first step is to contact your existing lender and confirm your rate of interest, balance outstanding and term remaining on the mortgage. Ask them if the variable rate you are on is the best available, and what fixed rate option are available to you as an existing customer.  You can then go comparison shopping, or you could get an independent broker to compare what’s out there.

“The more equity you have in your home,” says Sheahan, “the better the new terms likely to be available to you but you can switch even if your loan is 90 of your value.”

And when you are comparison shopping, make sure to investigate fixed as well as variable rates. While the latter have always been the default option in the Irish Market, fixed rate have become increasingly popular in recent years. They offer the key advantage of giving you certainly in monthly repayments.

Source: The Irish Examiner 08/12/2017

If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland


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