The best time to consider switching your mortgage is when it is in your financial interest to do so. The bigger question here is whether you will benefit from switching mortgages and what signs to look for in advance.

We hear ads on the radio and see them online about switching mortgages, and that it couldn’t be easier. Yes, it is easy to switch a mortgage in Ireland, but you should really only do so when you can benefit, and when the benefits last too.

Let’s take a closer look at the best time to switch mortgages in Ireland and how you can save some money in the process.

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So, when should I consider switching my mortgage?

Some financial advisers will give you one answer while others will give you another. As always, there are a few options to consider before switching mortgages, and each one has its merits.

You should consider switching mortgages:

When interest rates drop is always a good time to switch a mortgage, as you’ll see a lot of competition in the market and providers will offer a few sweeteners to get you on board.

If you switch mortgages, you can take advantage of the better interest rate options, and you may find you can lock yourself into a lower interest rate for a number of years.

Follow the interest rate market and see when a drop may be coming, and when to switch the mortgage.

When your fixed term is up or nearly up, the ball is firmly in your court, and you can call the shots with switching mortgages.

You have been in a fixed term of five years, often from the date you took out the mortgage, and a lot may have happened in those years. Interest rates will have changed, but you may be automatically put on the lender’s standard rate, which may cost you in more expensive repayments.

Even negotiating it onto a better rate may take time, and you will have the expensive repayments until you get a better deal.

Take a look at when your fixed-rate mortgage finishes and see what alternatives are out there. Other lenders will be happy with your business and could make it worth your while to switch mortgages.

When the loan-to-value ratio improves, so can your chances of getting a better mortgage. A better loan-to-value ratio, when the value of the home increases compared to the original mortgage loan amount, is always worth keeping an eye on in Ireland.

Think about it. Your home is now worth more; the mortgage capital sum has decreased, while the asset value has increased. Many mortgage lenders will offer better interest rates to keep you, or maybe even to entice you to switch mortgages.

Your business is worth money to the lenders, so shop around for a better deal when your loan-to-value ratio improves.

When your salary improves, either through a new job or a well-earned promotion, so does your financial bargaining strength improve.

You could be on a higher interest rate as the lender saw you as more of a lending risk a few years back. Now that you are earning more and in a more secure financial position, they should consider you less of a risk and offer you better mortgage terms.

Mortgage lenders are always looking for more business, especially from those earning more money, and will offer you better terms to switch a mortgage or maybe release some of the equity in your home.

We all know when an existing provider isn’t providing good service, as our colleagues, friends and relations will quickly point it out to us.

Your mortgage lender should value your business. They should be sitting down with you to see how they can keep you and how to improve the service you are getting.

Maybe the mortgage terms should be better, but you’re not seeing it. Often, you can’t get to see someone, though you are paying them enough each month. We could all do with a bit more customer service, but aren’t getting it.

Switching mortgage providers can see an uptick in service, interest rate offers and an overall lift in the spirits.

What are the benefits of switching mortgages?

There are many benefits of switching mortgages, not the least of course is saving money. People often think about switching a mortgage in Ireland, but not enough people do, and they miss out on plenty of benefits.

Some of the benefits of switching mortgages in Ireland:

  • Saving money through better interest rates and lower repayments
  • Enjoying the benefits of better mortgage terms, like taking payment breaks
  • Access the bonuses from ‘Green Mortgages’, such as discounts
  • Take up the option of paying off your mortgage over a shorter time
  • Put all your smaller loans into the one loan repayment
  • Access an equity release plan through the new mortgage
  • Get cashback for making a mortgage switch
  • Better customer service from the new mortgage provider

The benefits of switching mortgages can be obvious within a couple of months, and you can continue to enjoy them for the life of your new mortgage.

It’s never too late to switch mortgages, and you could see the benefits in your wallet in next to no time at all.

How easy is it to switch mortgages?

It can be very easy to switch mortgages in Ireland if you have the right advice and are happy with what your new provider is offering.

It is worth remembering that you may have a penalty clause with your existing provider, and some penalty fees can be significant, possibly larger than any cashback or other incentives offered by the new provider.

You may also have legal fees to pay, valuation costs, and possibly the cost of a new structural report on your building.

You should sit down with your existing mortgage provider and find out the costs of breaking your mortgage agreement with them.

MortgageOne has years of experience helping people switch mortgage providers, and we are here to help you.

Contact MortgageOne Today

Contact MortgageOne today if you are considering switching mortgages, or even if you are only playing with the idea. You could save money and ease some of that financial pressure on the home.

Our experts have the experience to help with decision-making and will explain every mortgage term clearly to you.

The MortgageOne team has in-depth knowledge of the Irish market to help you secure the best mortgage.

Our team can assist with paperwork, be with you throughout the process, and help you secure the best mortgage available.

Call MortgageOne today, and let us get you started on switching a mortgage in Ireland.