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House buyers in Ireland are currently facing a dilemma regarding mortgages, that is if they should make a switch or not.

One of the critical concerns for residential property owners is the high-interest rates they are paying on their mortgage. That is why we are witnessing an urge among house buyers to browse through interest rates and seek specialist advice when choosing a lender.

Avantcard, owned by Spanish banking group, Bankinter, has recently declared that it will enter the Irish mortgage market this fall being, in the words of the company’s CEO Chris Paul, “delighted to be joining the Irish mortgage market.”

This was shortly followed by the announcement by Permanent TSB of changes regarding their mortgage interest rates, with a reduction to both fixed and variable rates valid for both new and existing customers.

Is your bank’s interest rate too high?

With new lenders coming to the Irish market, and with some established ones reducing their rates too, buyers are now more and more considering different alternatives to their current provider.

Trevor Grant, the chairperson of the Association of Irish Mortgage Advisors (AIMA), agrees that these lower ratings and the entry of new lenders to the market will trigger more reductions and drive potential buyers to their current bank’s competitors in the search for lower interest rates.

Why switching your mortgage might be the wisest decision.

According to AIMA, 8 in 10 Irish homeowners currently on standard variable rates are considered to be overpaying in their mortgages. Switching from a standard to a fixed interest rate could imply significant savings every month.

Because people managed to get a good deal when they took out their mortgage, they assume that currently, that situation remains unaltered. However, things have evolved, and that deal is most likely out of date in today’s economy since new lenders, and new deals are being offered regularly.

Another common approach done by house buyers is to get their mortgage in their regular bank as a loyalty statement considering they will be rewarded later, which is an implausible scenario.

“With so much market change likely, and the number of options increasing, it is now more important than ever that prospective mortgages customers obtain advice from a dedicated mortgage intermediary who can advise them on all of their market options and assist them in obtaining the most suitable product to match their unique circumstances and requirements.” pointed out Trevor Grant, highlighting the importance of professional advice from brokers.

The emergence of new lenders in Ireland makes going to a broker the top option for customers.

“As new mortgage lenders such as Dilosk, Finance Ireland, ICS and now Avant Money, come to the Irish market, they have invariably chosen specialist mortgage intermediaries as their primary distribution channel,” Mr Grant stated.

Mr Grant further added to the advice of seeking a broker that, for those other than market experts, carrying out the comparing process between the range of lenders is a highly time-consuming course to take. And at the same time, going directly to your bank can make you settle for a less advantageous rate.

When looking at a mortgage 3 out of 10 house buyers use professional advisory services, and the number is expected to grow in forthcoming years. This is due to the broader range of offers these intermediaries provide while being able also to offer better interest rates.

Get the services of a professional financial advisor in order to get the best solutions to your particular situation.

How can I make a Mortgage switch?

Personal ID, Bank statements, and your wage slips are the documents you will need to gather to get the process going.

After that, take them to a professional financial services advisory firm like All Financials G F and make your ideal switch to start saving on your monthly payments. This procedure is also a lot quicker than you might first have thought and quite straightforward too.

We also back you with added benefits such as a 50% reduction for your first year in home insurance, a cost-free bank evaluation and up to €2,000 cashback.

If you have been looking at your numbers and are considering reviewing your mortgage, you should definitely contact your financial advisor or find your own dedicated mortgage broker professional at All Financials G F and check all the chances of savings possible for your mortgage.

Author: Fran Cooke

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