Switching your mortgage can be a hassle but is it worth it?
Yes. Switching your mortgage can save you tens of thousands, it soon may be less of a hassle as well.
The Competition & Consumer Protection Commission (CCPC) is realizing the benefits of switching and are looking of ways to take the hassle off the consumer. They currently are researching on how to make the process easier. They are taking focus groups from Dublin, Cork and Galway currently.
Of the research, the main drawbacks to people who switched were the amounts of paperwork, complicated, and too much time. Of those 35 percent estimated it took between one to two months while 24 percent said it took longer than two months. The CCPC proposed to start e-conveyancing with the Legal Services Regulatory Authority. It also proposed a start of automated switching process with the CBI and the Department of Finance.
Out of 6 percent of mortgage holders were considering switching but only 2 percent went through with it. Knowing that, the CCPC knows making it easier should be their aim. Another few reasons mortgage holders did not go through even though they would benefit: not knowing how to start, costs, effort, and time involved with switching.
However, switching is a lot of work. It is basically applying for a new mortgage but you don’t have to look for a house. Despite that, the CCPC thinks the banks and regulators still can make strides to make the process easier.
One thing to be aware of is to avoid the short-term offers on the loans and focus on the long term benefits because you will end up saving way more.
Overall, due to the CCPC we might see a new mortgage channel gain popularity. If it does it can save mortgage holders tens of thousands.
In reference to MAKING CENTS: Benefits outweigh the hassle in a mortgage switch by Grainne McGuinness in the Irish Examiner on 4 July 2017.