Is it time to switch your mortgage?

September 28, 2023

Are you on a standard variable rate or fixed rate mortgage? Is it due to expire in the coming months? Ensure you get the best rate on your mortgage by reviewing your mortgage and shopping around – acting now could make for serious savings over the coming months and years.

1. Know your mortgage – do you know what your mortgage rate is? How much is left on your mortgage? How long is left on your current rate? This is important information for all mortgage holders to find out, particularly if you are on a variable mortgage or a fixed rate mortgage. Therefore, the first step is to contact your mortgage provider to find out all of these details. While you are on to them, ask them what are the best rates they can offer you as an existing customer.
2. Find the best rate – whether you are looking to buy your first home, considering switching your existing mortgage, or moving house, there continues to be a wide range of mortgage rates on offer – a standard variable mortgage rate can range anywhere from 3.5% to 6.45%. The CCPC provides a free, easy to use and independent mortgage comparison tool which can help you. Simply put in some basic information, such as the amount and the length of the mortgage, and the tool will compare the rates of all major mortgage providers and show you what is available. Once you have all of this information you can decide if your current mortgage is the right one for you or if you should consider switching.
3. Get mortgage savvy – there are ways to get a better deal on your mortgage. While increasing property prices make things difficult for buyers, they can benefit existing mortgage holders. The loan to value ratio (LTV) is how much you owe on your mortgage relative to how much your house is worth. In recent years, the value of your home may have increased and as a result the LTV on your house will have reduced and so you may be able to get a lower mortgage interest rate. Another way to save is if you’ve recently increased the building energy rating (BER) of your home – or if your home has a BER of B3 or higher you may be able to avail of a ‘green mortgage’ which are among the lowest rates on the market. The CCPC’s comparison tool includes green mortgages.
4. Act now – for many homeowners coming to the end of a fixed mortgage, their new rate is likely to be significantly higher than what they have been paying. Particularly if your mortgage rate ends in the next six months, you need to start actively researching your options, getting independent financial advice and budgeting for this increase. The first step is to contact your lender, find out when your rate expires, the cost if you were to end the rate sooner and the amount outstanding on your mortgage. While it may seem a lot of work to sign up to a new mortgage, if you do not take action when your rate expires you will be automatically put onto your lender’s default standard variable rate which will most likely be more expensive than most fixed rates.
5. Get professional advice – mortgage repayments are for most people their biggest monthly expense. No matter what mortgage you are on, if you are worried or finding it increasingly hard to make your monthly repayment, take the first step today by contacting a qualified financial advisor. They can work with you to assess your circumstances and help you review your options and make the best decision for you.

You’ll find lots more free, independent information about mortgages in the money hub.

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