In today’s ever-changing financial landscape, switching mortgages in Ireland has become an increasingly viable option for homeowners looking to reduce their mortgage costs. With mortgage interest rates in Ireland constantly evolving, staying informed about your options could lead to substantial long-term savings.
This comprehensive guide will walk you through everything you need to know about how to switch mortgage providers, including when you can switch mortgage lenders, how to switch mortgage lenders, the potential benefits, and key considerations like fixed, variable, and split-rate mortgage options.
One of the most straightforward times to switch your mortgage is when your fixed-rate mortgage term expires. It is always recommended talking to a mortgage advisor at least 3-6 months in advance of your fixed rate expiring. If customers wait until after they have already rolled onto a variable rate, they may face a substantial increase in repayments. Many borrowers find themselves automatically moved onto a lender’s standard variable rate (SVR) after their fixed term ends, which is often significantly higher. Additionally, switcher mortgages can take an average of 6-8 weeks from start to finish, and in some cases, even longer.
Absolutely. In fact, this is one of the best times to explore better mortgage rates in Ireland, as you won’t face early repayment charges (ERCs).
While possible, exiting a fixed-rate deal early usually incurs penalties. You’ll need to carefully calculate whether the savings from a new deal outweigh these costs.
If mortgage interest rates fall significantly, switching could secure you a much lower rate. Keeping an eye on fixed mortgage rates trends will help you identify the right time to make a move.
If your income has increased or you’ve built up more equity in your home—for example, if your house value has increased and your mortgage balance has reduced—you may qualify for lower interest rates depending on your loan-to-value ratio. Most lenders have different tiers of interest depending on the outstanding mortgage balance versus the current value of your home. Additionally, some lenders offer preferential “green rates” for homes with a high Building Energy Rating (typically BER B3 or greater). Rather than being based on lower risk, these rates are primarily offered as lenders aim to promote environmentally friendly choices among customers.
Poor customer service, lack of flexibility, or unfavourable terms are all valid reasons to consider switching.
Start by gathering essential information about your existing mortgage, including:
You can find most of these details on a recent mortgage statement or by contacting your lender. Additionally, get an estimate of your home’s current value, as this will impact your loan-to-value (LTV) ratio. However, it’s best not to arrange a formal valuation at this stage. Later in the mortgage process, lenders will require a valuation through their approved valuers, and arranging one too early could mean paying for two separate valuations. If you have a recent valuation, that’s helpful, but at the start of a switcher, a rough estimate will usually suffice.
Once you have your details, compare available mortgage rates from different lenders. Look out for:
Online comparison tools and mortgage brokers can help simplify this process and highlight the most suitable deals.
Lenders assess several factors before approving a switch, including:
Once you select a lender you’ll typically need to provide:
Many lenders now allow digital submission of documents, making the process more convenient. The Central Bank of Ireland also requires lenders to provide a decision within 10 business days of receiving a completed application.
During the mortgage process and typically after approval in principle stage you will need to arrange a valuation through one of your lenders approval panel of valuers. Valuations are valid for 4 months and generally cost approximately €150. This is an expense that customers will need cover.
In certain circumstances, structural engineer reports are also mandatory (usually when the property is 100 years or older).
You’ll need a solicitor to manage the legal aspects of switching, including transferring your mortgage deed. While legal fees apply, some lenders offer cashback incentives to help offset these costs.
If the amount and term of your mortgage remain the same, you can transfer your existing mortgage protection policy to your new lender. However, if it has been several years since you last reviewed your financial protection, this may be a good opportunity to reassess your coverage. Changes in your circumstances—such as having dependent children—might mean you need additional protection to ensure your financial security. Reviewing your policy now can help ensure you have the right level of coverage for your current needs.
Before you drawdown your mortgage, you will need to complete a new direct debit mandate for your new mortgage repayment. Once you drawdown your new mortgage, it is recommended that you contact your previous provider and ensure you cancel the old direct debit to avoid potential duplicate payments.
Once all steps are complete, your new lender will transfer the funds to your solicitor who will in turn clear your old mortgage, and your mortgage switch will be finalised.
Even a small reduction in your mortgage interest rate can save you thousands over the life of your loan.
New lenders may offer:
Switching can allow you to:
If your home has a high building energy rating (BER), you may qualify for special mortgage rates with lower interest rates.
If you’re still in a fixed rate mortgage period, exiting early could mean hefty fees. Always weigh these costs against potential savings. In some cases, breakage fees cost very little and also some fees may not apply at all. To get an accurate understanding of any fees, speak directly with your current lender to determine what applies to your mortgage.
Switching may involve:
Changes in lending criteria or your financial situation could affect approval.
With mortgage rates constantly changing, regularly reviewing your mortgage could lead to significant savings. Whether you’re nearing the end of a fixed rate mortgage term or simply want to explore better deals, understanding how to switch mortgage lenders empowers you to make the best financial decision.
Switching your mortgage is a major financial decision that requires careful analysis of:
At Fairstone, our expert mortgage advisors specialise in helping home owners in Ireland navigate the mortgage market. We provide personalised comparisons of fixed mortgage rates and variable options, guidance on green mortgage incentives for homes with a high building energy rating, and support throughout the application process, ensuring a smooth switch. Book today your no-obligation mortgage advice consultation and take the first step towards a better mortgage deal.
Related articles:
What is the Help to Buy Scheme (HTB)?
