A mortgage is one of the largest financial undertakings you may face. Therefore, it is no surprise that monthly repayments can be crippling to your bank balance.
The Central Bank recently expressed that one in five mortgage holders could save money by switching their mortgage to a new provider. It’s estimated that 27,000 people have the potential to save €10,000 or more.
So why do only one in ten Irish people look to make the switch?
The research showed that:
- Consumers did not realise how much money they could save.
- Customers also found it too difficult to compare mortgages.
- And they believed the process was too long and complicated.
As a result, the Central Bank has changed the 2012 Consumer Protection Code to require lenders to:
- Notify customers 60 days before their fixed rate term ends.
- Provide details of new rates along with any other alternative options.
- Each year, banks must contact variable rate mortgage holders in relation to any cheaper interest rate that customers have the option to move to.
- When requested, all lenders must provide an indicative comparison of the total interest payable on a customer’s existing mortgage along with the interest payable on the new or alternative rate that’s on offer.
- Banks will be required to alert customers to the relevant section of the Competition and Consumer Protection Commission website where they can compare prices.
- Lenders must acknowledge receipt of a mortgage application within three days. A decision will then need to be made within ten days following receipt of all the required information for assessment.
These rules will come into effect on January 1, 2019.
Murray & Spelman (Financial Services) Ltd will help you switch by:
- Carefully comparing rates between all of our providers to ensure you get the most competitive option among our lenders.
- Ensure the transfer of mortgages is smooth so that you have nothing to worry about.
- Help you fill out your applications and explain the switching process to you in detail.
- Work tirelessly on your behalf to ensure your loan is approved.
- We will also ensure that your life cover and other insurances are re-assigned to the new mortgage provider or offer you alternative options.
To discuss switching your mortgage in more detail, you can contact Richie Murray in our Galway Office on 091 759500 or Michelle Maloney in our Kildare Office on 045 888088.
Alternatively, you can request a callback today.