A mortgage is the single biggest financial commitment any of us will make.
Many homeowners are paying thousands of euro extra for their mortgage each year because they find it too complex and difficult to switch to another lender. This means that they are potentially losing out on €2,000 per annum savings in many cases. See the link below.
The insistence of many Banks in not cutting their existing customers variable rates is a scandal and comes despite urging and threats from Finance Minister Michael Noonan. Some Lenders are trying to attract their customers into fixed rates by way of cashback offers. As you know fixed rates are inflexible and cost money to remove yourself from in addition to having to repay a portion of the cashback received. These Lenders generally have a record of high standard variable rates.
There are 300,000 mortgage customers on high standard variable rates. If you are a variable rate mortgage customer you can potentially save thousands of euro over the remaining term of your mortgage by switching mortgage provider. Switching is relatively easy and in some cases free. A number of lenders are willing to contribute up to €2,000 toward the cost of switching and rates as low as 3.2% variable are available in the market.
In recent research, The Central Bank found that over 100,000 or 1 in 5 mortgage customers in Ireland could benefit could benefit from switching their mortgage.
Recently we saved a client potential interest payments in excess of €40,000 over the remaining term of their mortgage. Often the hassle of dealing with the paperwork and switching is the very thing that dissuades clients from acting but if someone said to you, spend 15 minutes, you talk, we may subsequently complete some forms and I’ll give you a cheque for €40,000 I am not sure many of us would say no.
Call or email me to discuss your mortgage or any queries you have.
Lorraine
Tel. 087 2608988 or lorraine@jigsawfinancialsolutions.ie
