These changes were introduced due to research carried out by the Central Bank (CB) from 2015 onward. The CB analysed over half a million mortgages and results showed that up to 21% of borrowers could save money by switching. Furthermore, the data suggested that approximately 16,000 could save over €1,000 in the first year, and around 27,000 switchers have the potential to save in excess of €10,000 over the lifetime of their mortgage.
Subsequently, in 2017 the Central Bank expressed the need for greater transparency regarding information for consumers and the potential savings they could make by switching providers.
Basically, these new measures will help mortgage holders to understand when and if they should switch throughout the duration of their mortgage loan. If the consumer decides they would prefer a new alternative, then the switching process will be easier due to the new measures in place.
Gráinne McEvoy, Director of Consumer Protection expressed her views on the new requirements stating:
“While information to help consumers compare mortgage rates is widely available, our research also shows that some of the reasons people don’t switch their mortgage is because they don’t realise how much money they could save and also find it difficult to compare mortgages. These changes are aimed at making it easier for consumers to obtain this key information so that they are able to easily identify whether they are able to make savings by switching their mortgage, and make the process quicker and easier to complete if they do decide to switch.”
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Information Source: The Central Bank Website.