Looking for a better and more flexible mortgage with the
option of cashback for home improvements?
If you are considering a switcher mortgage / remortgage in Ireland but you are not sure about how to get the best deal and when to switch, then MortgageLine is here for you.
It is as simple as this, a switcher mortgage should save you money. A mortgage broker can help to save you money by finding a deal with a cheaper interest rate to reduce your monthly repayments.
MortgageLine works with mortgage customers all over Ireland from our base in Dublin.
Read on to learn:
A remortgage is when you take out a new mortgage on a property that you already own. With rising mortgage interest rates, switching mortgages has become very popular as people try to save money.
For most people, a mortgage is the largest financial commitment they will have. In the same way that you might search for the best deal on a new car, it makes sense to review your mortgage every few years to make sure you are not paying too much.
Our friendly mortgage advisers love talking about remortgages and have the knowledge of the options available to you.
Remortgaging is the process of renewing your mortgage, either when your current deal is about to expire or because you want to find a cheaper or more flexible mortgage.
Lots of mortgage products have a fixed interest rate that is set for a fixed period, most commonly 2, 3 or 5 years.
After this period ends, the mortgage interest rate reverts to the lender’s standard variable rate or SVR and this is when mortgage repayments can become expensive. Getting a remortgage to a lower interest rate can reduce the amount of interest you pay and could lower your monthly repayments.
A mortgage is one of the biggest financial commitments you’ll ever make, so it makes sense to keep checking that you’ve got the best deal. Over time your circumstances can change and so remortgaging to a different deal or mortgage provider can make sense and give you the flexibility or change in terms and conditions that you’re looking for to fit in with your lifestyle. If you need advice or are concerned about switching mortgage Ireland, hiring us would be an appropriate decision.
Each bank has its own specific criteria for accepting applications from individuals looking to switch their mortgage providers. If your financial status has significantly deteriorated since you were approved for your original mortgage, you may need help securing approval to switch to a new lender. When considering a mortgage switch, several eligibility criteria must be met. These include:
Outstanding Mortgage Balance: Irish lenders generally have a minimum threshold for accepting mortgage switch applications, typically in the range of €40,000 to €50,000. If your remaining mortgage balance falls below this range, banks might not see the benefit in accepting your switch application due to the small amount involved.
Credit Rating: Maintaining a good credit rating is essential. The lender you intend to switch to will conduct a credit check. If you have recently taken on additional loans or credit card debts and have struggled with repayments, this could hinder your ability to switch.
Home Equity: Switching might be challenging if you’re in negative equity (owing more on your mortgage than your home is currently worth) or if your equity is less than 20%. Each lender, however, will evaluate your application on an individual basis.
Remaining Term of Your Mortgage: Banks may be reluctant to accept a switch application if only a few years remain on your mortgage, as the short duration may not justify the administrative work involved.
Property Type and Location: In some cases, the specifics of your home and its location can impact your eligibility to switch. For example, if your home features unique elements such as a thatched roof, which can be expensive to insure and maintain, this might complicate the approval process for switching.
Each of these criteria must be considered to assess your eligibility and the potential benefits of switching mortgage providers. Our MortgageLine advisers are here to help you with these requirements and make an informed decision.
There are always costs involved with a remortgage and these need to be taken into account when considering whether remortgaging will be beneficial.
You may have to pay an early repayment charge to your existing lender if you remortgage.
If you are currently in a fixed rate deal that has not yet finished then you will probably be subject to payment of a fixed rate penalty. This penalty is usually up to 6 months mortgage interest. This can vary from lender to lender and will also depend upon how long your fixed rate has left to run.
If you want to release equity from your property to get a lump sum for home improvements then this means you will be increasing the overall amount you are borrowing. This will therefore mean a rise in your mortgage payments. However if you are doing home improvements then hopefully these will also increase the value of the property and so will have a positive effect on your LTV and snag you a better interest rate.
A remortgage to consolidate expensive short term debts might be right for you but you should do your sums carefully. Remortgaging may seem attractive as mortgages have relatively low interest rates when compared to credit cards or loans but borrowing over a long period may cost more in the long term.
Switching mortgages is a smart move that many homeowners don’t think about. But for us at our company, it’s a great way to help our customers manage their finances better. We provide switching mortgage advice and broker services. Here’s how you can get benefits with us:
From our first meeting to the moment you make the switch, our advisers make sure the process is smooth and hassle-free.
If you have a fixed interest rate or discount mortgage deal then this will come to an end after a fixed amount of time.
A good time to start searching for a new deal is 3 to 6 months before the end of your current deal. You want to give yourself plenty of time.
When your fixed deal rate ends, you will normally be moved on to your mortgage provider’s SVR. This may be higher or lower than what you were paying before but it may go up or down, so you will no longer have the security of a fixed rate.
If you are currently on a SVR, you may be able to save money by moving to a fixed deal. A move to a fixed deal can also help you to manage your monthly household bills as you will know exactly how much your mortgage payments will be for the fixed period.
Even if you have a while left to run on your fixed rate then it may still be worth considering switching. The savings can be considerable, especially if you have a large existing mortgage. Also some mortgage lenders have reduced or removed fixed rate penalties. Our expert advisers can help you to work out whether switching is a good option for you.
If you have owned your property for a while and there has been an uplift in the property value then there could be savings for you. If the current value of your home means that you are now in a different loan to value (LTV) bracket then it may be possible to get a lower rate of interest and reduce your monthly mortgage payments. The better your LTV then the better interest rate you will get.
Sometimes the mortgage you chose when buying your property no longer meets your needs. It may be that your personal circumstances have changed and you would like a mortgage with the flexibility to allow you to take an occasional payment break. Or you may want to make a regular overpayment so that you can pay off your mortgage earlier, but your current mortgage lender does not have this flexibility. There are lots of different flexible mortgages out there which might suit you.
If you have enough equity in your home, you may be able to remortgage it to release some equity to provide you with a lump sum for home improvements. For example, to redecorate or remodel your home, or build an extension. A remortgage can be a cost effective way to finance the home improvements you need in an affordable way
When you’re thinking about switching your mortgage to a different lender, one of the first questions you might ask is, “How much will it cost?” and “How much can I potentially save?” Switcher mortgage calculators are designed to help you with these questions by providing detailed insights into potential costs and savings.
This calculator helps you understand what your new monthly payments could be with a different lender.
This calculator is helpful if you’re considering borrowing additional funds on top of switching your mortgage.
Remortgaging offers several benefits, primarily aimed at reducing your financial burden. The primary benefit of remortgaging is securing a lower interest rate, which can substantially decrease your monthly repayments and overall interest paid over the life of the mortgage.
Additionally, remortgaging can provide the flexibility to adjust the terms of your mortgage to better suit your current financial situation, such as changing the mortgage term or switching between fixed and variable rates. If your home has increased in value, remortgaging also allows you to move to a better loan-to-value bracket, which can qualify you for lower rates.
The ideal time to consider switching your mortgage provider is before your current fixed-rate deal expires, generally 3-6 months in advance. This window allows you sufficient time to explore the best available options and secure a new deal without rushing.
Additionally, if you notice that your property value has significantly increased or if you’re currently on a standard variable rate (SVR) and the market offers lower rates, these are opportune moments to think about switching. Switching providers could also be beneficial if your personal financial circumstances have changed and you’re looking for more flexible mortgage terms.
The decision to remortgage should be weighed against several potential costs. These include early repayment charges from your current lender, especially if you are in the middle of a fixed-rate term. Legal, valuation, and potential arrangement fees with the new lender might also apply.
Additionally, if you are consolidating debts through remortgaging, consider the long-term implications of extending short-term debts over the period of a mortgage. Always calculate these costs to ensure that remortgaging will be financially beneficial in the long term.
Remortgaging to release equity from your home can be an effective way to raise funds for home improvements. If the value of your property has increased since you took out your original mortgage, you may have built up substantial equity. By remortgaging for a higher amount than your current mortgage balance, you can release this equity and receive a lump sum.
This approach can be more cost-effective than other types of borrowing, such as personal loans or using credit cards, as mortgage rates are generally lower. However, it’s essential to ensure that the value added by the improvements will justify the increased debt.
When looking for a new mortgage deal, focus on finding a rate that is lower than your current one to ensure savings on your monthly payments. Consider the type of rate (fixed or variable) and the term of the rate (how long it will last) based on your financial stability and risk tolerance. Also, look for a mortgage with features that match your needs, such as the ability to make overpayments or take payment holidays.
Additionally, check for any incentives, like cashback offers or fee waivers, that can provide added value. Lastly, consult with our mortgage advisers, who can offer personalized advice and help you consider the various options based on your specific circumstances. Contact us today!
In Ireland, individuals looking to switch their mortgage can generally borrow up to 3.5 times their gross annual income. This calculation is based on their combined gross annual incomes for joint applicants, allowing for a more substantial loan amount. Furthermore, switchers can borrow up to 90% of their property’s current market value. This provides significant flexibility, particularly for those seeking to improve their mortgage conditions or refinance for better terms. Additionally, the loan terms available to switchers can extend up to 35 years, offering extended repayment periods and making monthly outgoings more manageable. This combination of factors makes switching mortgages an attractive option for many homeowners in Ireland.
To qualify for a switching mortgage or remortgage in Ireland, you need to meet the following eligibility criteria:
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Stephen Hamilton Financial Services Ltd T/A MortgageLine is regulated by the Central Bank of Ireland.
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