Mortgage switching has hit an all-time high as homeowners seek to cut thousands of euro from their annual payments.
A report on Tuesday from the Banking and Payments Federation of Ireland shows many have used lockdown to find better deals. Switching activity grew strongly in September, with volumes up by 36.6% year on year and almost 7,000 switcher mortgages approved in the 12 months ending September 2021 – the highest annualised level on record.
By switching you could save up to €237 per month on a €250,000 mortgage over 25 years ( based on a 3 year fixed rate where ltv is less than 60%). Homeowners are unlocking opportunities for huge savings due to mortgage rates now being available for under 2pc.
A total of 11,479 new mortgages to the value of €2,784million were drawn down by borrowers during the third quarter of 2021. This represents an increase of 40.9% in volume and 42.3% in value on the corresponding third quarter of 2020, when the country was in the middle of a lockdown. First-time buyers remained the single largest segment by volume (52.7%) and by value (52.8%).
It is recommended that home owners switch or review their mortgage every few years to ensure they are getting the best value.
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