While the idea of switching mortgage lenders may sound like hassle, it’s actually not as complicated as you might think. Here are some of the benefits to look forward to if you remortgage your home.
Save Money
The number-one reason why people choose to remortgage their home in Ireland is that it may allow them to move to a lower interest rate. Even if the mortgage you got when you bought your home was the best deal at the time, things may have changed. The switch to a lower mortgage interest rate may be able to save you hundreds or even thousands of euros each year.
Keep in mind that you will not always save money by switching your mortgage. That’s why it’s crucial that you consult an expert and run the numbers to ensure you won’t actually lose money in the process. If you’re switching to a fixed-rate mortgage, make sure you know what rate you’ll be paying once the fixed-rate period is over. Sometimes reducing your mortgage interest rate can also significantly reduce the term of your mortgage—sometimes by years! A big benefit of switching is that you may be able to pay your mortgage off sooner with a lower interest rate.
Get Cashback
You may be turned off from the idea of switching your mortgage since there are usually costs associated with the process such as the valuation and legal fees. However, these don’t matter nearly as much if your lender gives you a cashback incentive for switching. These incentives can be as high as 3% of the new mortgage loan amount. This level of cashback is usually more than enough to cover the cost of a switch with change left over. You could also use any leftover money to finally make some home improvements you’ve been thinking about. While not every lender will offer cashback remortgages, there are several offers currently available.
Loan Consolidation
If you have other debts you’re still working on repaying, you may be able to consolidate these debts with your mortgage payment. Reducing your monthly outgoings in this way can be a big budgeting help!
Loan consolidation can also save you money because your higher-interest debts (such as your Credit Union Loan or credit card debt) can be moved to a lower interest rate by being bundled with your house payment. However, in some instances, you may also pay more money because you’ll be paying off debt over a longer period of time. So make sure you’ve run all the numbers first! Important to weigh up the pros and cons of consolidating loans with an expert so you can see if it is the right thing for you to do.
Start the Process. Make the Switch!
If you’re ready to talk about the possibility of a remortgage and experience the benefits for yourself, get in touch with MortgageLine! We offer you simply good advice on refinancing your home. You can call us today at (01) 707-9880 or apply online at www.mortgageline.ie
Thank You, Stephen.
