Should I switch mortgages? It’s an important question to ask yourself. Most people are concerned with buying the home rather than shopping around to get the best deal when it comes to their first mortgage. Does this sound familiar? You should probably look into your current mortgage situation. You could be losing out on potential savings!
Are you suitable to switch mortgages?
As a rule of thumb, you need to be in a permanent job for 1 year or self employed for 2/3 years before you look into switching mortgages. You need your Loan To Value to be less than 90%. Then you will be in a position to compare your current mortgage with the alternatives on the market. Switching mortgages is something you should definitely consider. Even a 0.4% or 0.5% reduction could save you a lot of money every month and over the course of a mortgage, it could save you thousands!
Deal with a Mortgage Brokers
Mortgage brokers, like The Mortgage Team, have access to the following financial institutions: PTSB, KBC, Haven(AIB) and Dilosk/ICS Mortgages. Mortgage brokers help you get the best deal. More often than not, people end up meeting a financial advisor that is attached to a certain financial institution. This isn’t ideal for a number of reasons. Mainly in that it means that they might not in fact be getting the best deal. They might save money on their current mortgage but they could still be losing out on potential savings because they don’t have access to the entire market.
What costs are involved in switching mortgages?
Sometimes, you could be charged for switching mortgages by your current lender. Go to your lender and ask them for an account statement. In this you can see how much you still owe and how much it will cost you to switch. There could be interest charges and administration charges involved in switching also so be sure to ask your provider about any of these hidden costs.