Review Your Mortgage Rate & Finances Urge Brokers Ireland (Articles, March 9th 2022)
There are large savings to be had by those willing to take the time to switch their mortgage. This could save mortgage holders tens of thousands in the long run. In recent years it has become a lot easier, thanks to new measures implemented by the Central Bank of Ireland. Re-mortgaging your property can also save you thousands in interest and release you from financial stress.
Why should I switch or remortgage?
Currently, the average interest on a mortgage in Ireland is close to 2.75%, (March 2022) however, many people who took out mortgages a few years ago are paying rates far more than this. There’s an excellent choice of rates currently with some fixed rates 2% and lower now.
Shorter term, higher interest debts can often diminish your disposable income beyond comfort. Other debts whether for home improvements or not can leave you in a perilous financial position and must be looked at as part of your overall financial plan.
If you’re not one of the lucky ones currently on a low-rate tracker mortgage, it is time to re-evaluate your current mortgage and investigate switching because some serious savings could be made in the short, medium, and long term!
When is Best?
People on a variable rate can switch mortgages at any time, therefore making the transition easier. You can still switch if you are on a fixed mortgage, the viability depends on the penalty fee charged or applicable when you leave your contract early (redemption charge) , this can vary from bank to bank depending on the interest rate and term remaining. It is often worth your while calling your lender to check the redemption cost, if applicable .
There are other costs involved in switching mortgages (and remortgaging) , such as legal fees but there’s also offers available that may help subsidise this.
We can then help you evaluate what is best financially for you once we discuss all your relevant details, concerns and ambitions.
Recent News Headlines
Responding in March 2022 to the Central Bank Retail Interest Rates, Brokers Ireland advised mortgage holders, “to review their current rate and term of mortgage and consider if they could achieve a rate and term that would better suit their circumstances and give greater security into the future”.
Rachel McGovern, Director of Financial Services at Brokers Ireland warned that “we are very likely to be close to, if not at the bottom of, the low interest rate cycle and the window of opportunity to avail of the best mortgage rates may be closing”.
“Mortgage holders and particularly those who have not already reviewed their situation need to plan carefully for the future without further delay and seek advice from a Financial Broker who will tailor a plan to suit individuals’ particular circumstances and future plans,” she said.
You won’t need to take out a new mortgage protection policy, provided the amount you borrow, and the term of your mortgage stay the same. We can handle the reassignment of your existing policy to your new lender for you. However, this could also be a good time to look at whether you have the best (and/ or cheapest) mortgage protection deal for your current circumstances at same time.
If you are you interested in saving money on your mortgages, call us now. One of our expert financial advisors will talk to you and help you get your application started!