Mortgage switching 2022

Last year of the people approved for a mortgage about half of those are first-time buyers. The slowing in the numbers approved for a home, comes as some lenders have already said they increasing their rates. (AIB, Bank of  Ireland, EBS, Haven and Permanent TSB). Around 775 homeowners need mortgages or are switching to another lender at any given time

If you want to buy a house, you have to pay the owner for the house and have to pay your bank for lending the money. Still more than 200,000 households repaying their mortgage on standard rates.

Homeowners should now consider their rates. But there is a risk for those on fixed rates. If they roll out of fixed-term contract in one or two years, the rates could be higher. The prospect of higher mortgage costs is prompting to switch from variable or short-term fixed rates in a bid to the expected increase.

If you decide to switch mortgage, you need a solicitor to take care of the processing, paperwork and liaising. The cost and workload is about half of …

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Mortgage switching: how, when, why

What does it mean to switch mortgages? Why would someone want to switch? What can be gained from switching? Finally, if one wants to switch, how should they go about doing it?

The first question is easy to answer, though oftentimes “switching” can get conflated with “remortgaging.” Don’t be fooled; these refer to two different things that, while similar in concept, can have different implications for the borrower.

“Remortgaging” simply refers to getting a new mortgage to replace a previous one; this can be done with one’s existing lender or a new one.

“Switching” is the process of taking one’s existing mortgage and moving it to a new lender.

Now, for the next question: why would a borrower want to switch mortgages? There are a number of reasons for doing so. Firstly, a borrower might be dissatisfied with their current lender for one reason or another, like poor service or lack of responsiveness to inquiries. If borrowers think another lender will provide better service, tat would be a good reason for switching mortgages to said lender.

Another reason for switching …

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Ulsterbank fire the next shot in the mortgage ‘rate-war’

Ulsterbank recently upped the ante in the mortgage rate-war by reducing a suite of their rates, the story was covered in the Independent which also quoted Irish Mortgage Brokers.

Karl Deeter said the cuts represent the latest shot to be fired in the mortgage rate war.

“In response to Avant Money’s European-style rates, Ulster Bank has had to respond and now it means that other lenders are under even greater pressure to follow or beat these rates.”

He said this means customers will win. But they have to switch lender is they are paying high rates.

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Most mortgage borrowers don’t want to save €10,000

It’s bizarre but true. A recent study by the Central Bank showed that the majority of borrowers stood to really gain in payment savings and interest payments by switching their mortgage and yet only a tiny fraction actaully do it.

Who do you know that would walk by a free €10,000? Nobody right? Yet you do, it may even be you, because if you pay a bank thousands more than you ought to because you aren’t willing to take the time to do some paperwork and switch your loan that’s precisely what happens!

Here are the main findings (verbatim) from the Central Bank:

Three in every five eligible mortgages stand to save over €1,000 within the first year if they switch mortgage provider, and more than €10,000 over the remaining term. Just 2.9% of mortgages switched provider in the second half of 2019. A diverse range of factors may inhibit switching, including psychological factors, lack of knowledge on the costs and benefits, and the perceived complexity.

Get in touch at info@mortgagebrokers.ie apply online or call us and we can help …

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Talking Money – Switch your mortgage to save

This week on ‘Talking Money’ Karl Deeter and Jill Kerby were discussing ‘switching’ with Cormac on RTE’s Drivetime. It was coincidental that many of the points we made were reinforced by the Central Bank findings this week on mortgage switching on points such as assertive customer behaviour being important and not allowing inertia to hold people back.

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Banks have a message for you, ‘Get off my loan book!’

We have been saying for quite some time that banks would start to find ways to induce people away from their loan book. The first mention is from a post here back inn 2008 where we mentioned ‘early redemption bonuses‘  and then we also said something similar which Niall Brady from the Sunday Times picked up on in July of 2009.

The basic premise is that banks want rid of certain types of borrowers and loans in particular, and in some cases loans in general. We’ll take a look at the loans that bother them the most below.

1: Sub-Prime loans: this is definitely the clearing house recently Fresh Mortgages sold their loan book in a private deal believed to be well below 30c on the euro. This was for a book that was secured on sub-prime mortgages and serviced via a centre in Northern Ireland, something Fresh did was to offer their borrowers an inducement to go elsewhere or pay …

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Want bad advice? Pop into your local bank branch.

We felt that this story was worth reproducing in full, it is from today’s Independent, via their award winning Personal Finance editor Charlie Weston. This clearly lays it out in our opinion: getting advice in your local bank branch is perhaps the worst option available, and that puts the value of an independent broker in the light we always aim for, one of being on the customer side, the recent Sunday Times article (three posts before this) demonstrated that in a cost comparison analysis that even the Regulator themselves couldn’t get the prices brokers are able to obtain for their customers! Tuesday December 08 2009

IF you want bad advice, then pop into your local bank branch.

That is the clear message from the latest set of case studies released by Financial Services Ombudsman Joe Meade.

Mr Meade has performed an enormous service for consumers by exposing yet again the shady practices of banks, in particular, when people seek advice.

His report is shot through with examples of consumers, particularly older ones, …

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NAMA pricing, and why we’ll over-pay

The ‘haircuts’ we are hearing about in the papers of late are not ‘bobs’,’mullets’ or ‘short back n’ sides’, it is all about the pricing of NAMA assets, and when the pricing does become public don’t be disappointed to hear that it isn’t as big as many have felt it must be, the taxpayer is going to (ultimately) over-pay for the assets that NAMA takes on, try not to feel ripped off, in fact, overpaying is perhaps the only way we can get NAMA to work and the alternative is worse. I don’t envisage a haircut of any more than 18-20% at most if we are to ensure that banks and Government are truly working towards one aim when it comes to NAMA.

It is vital to remember – any NAMA losses will be levied upon the banks with interest, so even if there are losses (and there has to be, because there is no way anybody could get things 100% right) the tax payer is -in the long term- sheltered. While …

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How falling interest rates hurt banks during a liquidity crisis

The falling interest rates are heralded by consumers of Irish mortgage companies as a godsend – well, for the clients of the Irish banks who actually pass on the full rate cuts that is! However, at the same time it creates a rate compression which damages the bank and this is what we will consider in this article.

Banks have two sides to the operation roughly speaking, on one side there is the lending function which we are all aware of, mortgages, car loans, personal loans etc. on the other side is the deposit taking function which provides part of the money they lend out. There is of course the interbank market which supplements (and often surpasses) deposit funds for lending, but to keep things simple we will focus on a world where deposits roughly equal lending.

When

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