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According to the latest Irish Independent Mortgage Switching Index for the first quarter of this year, many homeowners are paying significantly more than necessary on their mortgages. The gap between the highest and lowest mortgage rates on the market has reached a record level, with some households overpaying an average of €7,812 annually by not switching lenders.

Key Findings:

  1. Rising Interest Rates: Mortgage rates now range from 3.45pc to over 7pc, with the highest variable rate at 7.15pc compared to the lowest standard rate of 3.6pc.
  2. Potential Savings: Homeowners could save an average of €7,812 annually by switching from high-rate mortgages to the lowest available rates. This record 42pc gap translates to a difference of €2,212 per month versus €1,566 per month.
  3. Decline in Switching Activity: Despite these potential savings, mortgage switching activity has decreased in 2023 due to confusion and market volatility.

Why You Should Consider Switching:

  • Financial Benefits: Switching your mortgage can lead to significant annual savings. For example, reducing your interest rate from 7.15pc to 3.6pc could save you over €650 per month.
  • Improved Loan to Value: With property values rising, many homeowners may now qualify for better rates even if they initially took out high loan-to-value mortgages.
  • Green Rates: Homeowners who have made energy-efficient improvements can potentially benefit from green mortgage rates starting as low as 3.45pc. This translates to an additional €300 in savings annually.

Steps to Take:

  1. Review Your Current Rate: Check your current mortgage interest rate and compare it with the rates offered by other lenders.
  2. Consult a Mortgage Broker: Seeking professional advice can help you understand the potential benefits and costs of switching your mortgage.
  3. Act Promptly: Don’t let fear of making the wrong choice stop you from exploring your options. The potential savings are substantial, and taking action could significantly reduce your financial burden.

Switching your mortgage is a step worth considering, especially in the current high-interest environment.

Take Action Now: Switch Your Mortgage and Save!

Don’t let high interest rates drain your finances. By switching your mortgage, you could save thousands of euros annually. Give us a call to discover how you can lower your monthly payments and secure a better rate. Our experts are here to guide you through the process and ensure you get the best deal possible. Start your journey to financial savings today!

Author: Fran Cooke

Fran Cooke

Fran specialises in finance products – Pensions, Life & Mortgages advising both individuals and corporates throughout Ireland. Fran holds qualifications and accreditations from Maynooth University and the Life Insurance Association (LIA) in Financial Services. Fran recently completed the Special Investment Advisor (SIA) course and is currently refreshing his pensions knowledge with the Retirement Planning Adviser (RPA) accreditation.