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

 

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


How Irish homeowners could save €3,600 a year by making mortgage switch – all your questions answered about making the move

According to MyMortgages.ie research, the ‘average’ borrower could save between €40,000 and €100,000 over the lifetime of their mortgage by moving to another lender

By Fiona Ellis   30 November 2017

MyMortgages.ie Dublin Cork

According to the company’s research, the “average” borrower could save between €40,000 and €100,000 over the lifetime of their mortgage by moving to another lender.

Joey Sheahan, Head of Credit with MyMortgages.ie 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.
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