Are you eligible for a mortgage switch?
There is a set criterion for mortgage switchers, depending on which bank you chose. You will need to ensure that your financial situation has not been worse from when you first qualified for your initial mortgage.
In general, there would have to be around €40,000 to €50,000 remaining on your existing mortgage before a lender will consider the application to switch mortgage.
A report 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.
Did you know that switching your mortgage is much less stressful, easier and less costly than buying a new home?
There are no land registry or search fees involved with switching, but you will need a solicitor to some of the paperwork for you. Switching mortgage legal fees cover the solicitor costs to:
- Request your house deeds on behalf of the new bank from your current bank
- Review and advise you on the terms of the loan the new bank is offering you
- Witness and process the loan agreement for the new bank
As well as switching mortgage legal fees, the other mortgage switching cost is a valuation fee. An estate agent selected by the bank will also value your home, this allows the lender to make sure you are on the right mortgage rate.
What are the costs involved?
Legal Fees should cost you no more than around €1,500 on a mortgage switch. This is a routine legal exercise and much more straightforward than buying a new home in the first place.
- Switching mortgage legal fees range from about €1,200 to €1,500 excluding VAT at 23%.
- The other mortgage switching cost is the valuation fee which is much less at around €150.
- So if you shop around, your all in costs should come in below the €2,000 mark inc VAT.
Contact us today with any mortgage queries and our expert mortgage advisors are here to help.
Source: Irish Times