Five financial tips to get your year off to the right start

MyMortgages.ie Dublin Cork
 Fiona Reddan
New Year’s resolutions don’t all have to be about giving up chocolate and alcohol!

 

MyMortgages.ie Dublin Cork

 

Written by Robert McHugh, on 24th Nov, 2017. Posted in Property

Despite the Central Banks recent efforts to highlight the benefits of mortgage switching to consumers, the majority of mortgage holders remain unaware of the potential savings that exist and of their eligibility to switch lenders.

This is according to figures from MyMortgages.ie who have revealed that on “average” mortgages throughout the country anywhere between €40,000 and €100,000 could be saved by moving to another lender.

The broker, reflecting the views of the sector, expects a surge in mortgage switching over the next 12 months as banks ramp up their interest rate price war with more and more households back in positive equity with every passing month.

In 2015, research from the Central Bank in 2015 showed that approximately 1 in 5 mortgage holders could make savings by switching their mortgage. And again, in August of this year the Central Bank tried to highlight the issue and by proposing the introduction of statutory requirements to support consumers considering switching their mortgage.

MyMortgages.ie say that judging by the Central Bank’s estimates, then many more people, maybe as many of 2 in 5 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, MyMortgages.ie believe it is nowhere near where it should be.

Speaking this week, Head of Credit with MyMortgages.ie, Joey Sheahan said, “A mortgage is most people’s biggest monthly expenditure and yet it’s something that people don’t pay enough attention to when it comes to getting the best value on the market. Many people assume that once they’ve taken out a mortgage with a lender for 20/25/30 years, then that’s the end of the decision making process. But mortgages are just like any other financial product – they should be reviewed every 3 years to ensure you are not paying over the odds.”

He added, “If you are a fixed or variable rate mortgage customer you are definitely of interest to other mortgage lenders which 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.”

Source: www.businessworld.ie   

 

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

Tuesday, December 05, 2017

For those of us not lucky enough to be on a tracker mortgage, there has been some good news in the last couple of month, with many of the main providers reducing either fixed or variable rates, writes Grainne McGuinness.

Bonkers.ie head of communications Mark Whelan, said recently: “There is finally some healthy competition entering the Irish mortgage market, which is good news.”

However, although variable rate customers will benefit immediately from any price increase from their own banks, many could still get better rates elsewhere. So what is the advice from experts? You guessed it, it is to switch. This is despite the fact that consumers are notoriously slow to switch providers, particularly for a complex product like a mortgage.

Joey Sheahan, head of credit with MyMortgages.ie promoted the positive benefits: “With the still curtailed new house building, banks are struggling to hit their mortgage
targets and so are turning to the switching market. This is creating an opportunity for many homeowners to make considerably savings.”

His company recently released figures which suggested that on ‘average’ mortgages throughout the country, anywhere between €40,000 and €100,000 could be saved by moving to another lender.

Mr Sheahan said people are struggling unnecessarily with repayments. “There are homeowners needlessly paying more than 3.6% in interest. A large portion of these people can easily switch lender once they have 10% equity in their property. There are less and less people in negative equity due to the unprecedented recovery in property values over the past few years.”

And yet, all the research and figures suggest that very few of us will switch. No matter how many experts advise us too, there is still a perception that the whole process is too difficult. So is it a lot of hassle? I asked Niall Daly, conveyancing partner with BDM Boylan Solicitors in Cork, for an honest assessment of switching and its popularity.

“We don’t see an awful lot of it,” he said. “There is some, but is not an avalanche. It would really want to make sense for someone, before they will consider it.” There are a number of potential issues he flags, although these will not affect all customers.

He says depending on the type you have, you may have to take out a new life policy, particularly if extending the term. If you have had any health issues since you took out your
original policy, you may run into problems if your insurer requires a fresh medical.

“It might not necessarily be a cost but it is one of those things you would want to be aware of,” he says.

One issue he is keen to highlight is the need to certify any work that has been done to the property.

“If the clients have extended or altered the house since they took out their first loan the solicitor should insist on getting an engineer to sign off on the work, and if it needed planning, check that they got planning,” he said.

Some solicitors will require that the local property tax is up-to-date on the property. There will also be a few hundred euro in charges relating to the deeds themselves. However, Mr Daly believes mortgage-holders should definitely review the loan, particularly if they originally took it out over a long term, 30 or 35 years.

“What I always say to clients is, if you can afford it, go back to your bank after a number of years and say you want to to reduce the term,” he said. “It will increase your monthly payments, so it does come down to affordability. But it will reduce what you pay in the long term. What people with very long terms are doing is taking short-term gain for long-term pain. You pay way more in the long run.”

While switching is a little more complex, he agrees it is something customers should consider as an option.

“Sit down with your calculator and make sure it is worth it. If the bank is paying the legal fees or giving cash back that will cover costs, that eases the pain. You can do it in less than a month if the customer is organised.”

 

Source: The Examiner 5/12/2017  http://www.irishexaminer.com/lifestyle/features/making-cents-switch-your-mortgage-to-avail-of-great-savings-463943.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.


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