The biggest savings in life can be made by regularly reviewing your mortgage. The mortgage market is ever changing, so there can be big savings to be made. According to a recent report from Doddl.ie, the average homeowner is paying over €4,000 per year extra in mortgage repayments by staying with their current lender. Over a 20 year term, that could amount to a whopping €80,000 overpayment.
Rates and Savings
Variable rates are currently ranging from anywhere between 2.7% to 4.5%, while fixed rates vary from 1.95% to 4.4%. That is a huge variance of over 2.5%. If you consider every €100,000 of your mortgage, that is a massive €2,500 per year in difference between rates. There are special conditions attached to some of the rates, so not all rates will apply to your specific case. Consider what you could spend that extra cash on every year?
Aside from savings, another benefit of reviewing your mortgage could be to reduce the term of the overall mortgage. From the savings you make, instead of reducing your monthly repayments, you could pay off your mortgage early, for example, change your mortgage term from a 20 year term to a 10-15 year term. Reducing the term of your mortgage would save you a lot of money in the long term as you are saving yourself years of interest repayments.
As brokers, we pledge to our mortgage clients that we will regularly review your mortgage throughout the term, so that you get the best value on your mortgage, through the entire term, not just at the outset. This means that you won’t have to keep on top of it, we will do it for you when you take out your mortgage with us.
How much does it cost to switch your mortgage to another lender? As a broker, our fee is €100 for advice and an additional €200 to carry out the switch on your behalf. The new lender will require a valuation to be carried out on the property, the approximate cost of a valuation is €150. The cost of hiring a solicitor for the process is approximately €1,100. Overall the cost of approximately €1,500 would certainly be worth the savings you could make on your mortgage repayments.
If you wish to review your mortgage with us, please get in contact. We will be sure to make it a smooth and stress free experience, while getting you big savings on your mortgage. We would be delighted to look after your mortgage review for you.