Brought to you by
This website aims to answer some of the questions you might have when considering switching mortgages, the steps involved in getting ‘switcher ready’ as well as links to other sources of information.
What do I need to know about mortgage switching?
If you have a mortgage on your home you may be able to switch this mortgage to another lender or to another mortgage product provided by your current lender. There can be benefits to switching including better lending terms, savings and/or incentives or special offers.
Why should I consider switching mortgages?
You may have shopped around for the best rate available at the time you got your mortgage. However, this may not be the best rate available to you anymore or you may be coming off a fixed rate mortgage and so it is important to look at your options.
Switching your mortgage could allow you to save money on your monthly repayments or shorten your mortgage term if you can avail of lower interest rates on offer through another lender or another product from your existing lender. You may also find a better deal if your loan-to-value (LTV) rate has fallen or based on your Building Energy Rating (BER). Many lenders also provide financial incentives or special offers to help you cover the cost of switching if you decide to switch your mortgage to them.
Note, if you are on a tracker mortgage, you should seek professional financial advice before considering any changes to your mortgage.
Are you coming off a fixed interest rate on your mortgage?
A fixed interest-rate mortgage is when you are on a set interest rate for a set period of time. If the lender’s interest rates change during this set period, your mortgage will not be affected because your interest rate is fixed.
If your fixed interest rate term is coming to an end, you may find that interest rates are now higher than when you originally secured the fixed interest rate, so it is very important to shop around and look at what’s on offer.
Your lender will write to you at least 60 days prior to your fixed interest rate expiring and will provide you with:
- details of your current interest rate
- the new default variable interest rate that you will roll onto if you don’t switch to another offer or lender
- a summary of the other interest rates available to you through your current mortgage provider
- you will also be provided with an indication of the monthly repayment levels for each interest rate outlined
It is important to talk your current provider about the choices available, as well as considering switching to another lender.
Has your house value increased and/or your outstanding mortgage decreased?
The loan-to-value (LTV) ratio of your mortgage is the amount you owe on your mortgage in relation to how much your home is worth. For example, if your home is worth €200,000 and you owe €150,000 on your mortgage, your LTV is 75%. You may have a lower LTV ratio now than when you first took out your mortgage if the value of your home has increased and/or your outstanding mortgage has decreased due to the accumulation of repayments over a number of years.
Some lenders may offer lower interest rates to borrowers with lower LTV ratios. You will need to get a professional home valuation to apply for a reduced interest rate based on a reduced LTV ratio. Your mortgage lender can advise you of the approved panel of valuers which you can contact.
Building Energy Rating (BER) may provide a better rate
A Building Energy Rating (BER) certificate rates your home’s energy performance on a scale between A and G. A-rated homes are the most energy efficient while G-rated are the least energy efficient.
Your Building Energy Rating (BER) may make you eligible for a more competitive rate. Note that you will need to provide a BER Certificate to your lender when applying for the rate. In order to get a BER cert a survey must be carried out by an independent registered assessor. You can find out more about how to do this on the SEAI website here.
When is the right time to switch?
Your decision to switch will depend on whether you can make savings through a better deal or interest rate and if you are eligible to switch.
If you have a variable interest rate mortgage, you can switch your mortgage at any time. If you have a fixed interest rate, you may have to wait until the fixed term comes to an end or, in some circumstances pay a fee for ending the fixed interest rate early.
Switching your mortgage can take time but the more prepared you are before you apply can save you time, i.e. gathering the relevant documents you need. See details on next steps below.
Am I eligible to switch?
In order to switch mortgage loans, you will need to meet the mortgage lender’s lending criteria. Generally, customers need to be making full capital and interest repayments on their mortgage. In addition, customers must have no arrears on their home mortgage or any other lending in the past two years. Other criteria may apply and applications are assessed on a case-by-case basis in line with individual lender credit policy.
In some circumstances you may not be able to switch your mortgage. Some of the reasons for this include:
- A small outstanding balance – Some lenders have a minimum amount that they are willing to lend so if the amount you have left to pay on your mortgage is small you might not be able to switch to a different lender.
- Mortgage term – The term of a mortgage is how long the mortgage is for. Many lenders have minimum or maximum terms. If you are near the end of the term of your mortgage or you want a longer term than the lender is willing to give, you may have difficulty switching your mortgage.
- Negative equity – Your home is in negative equity where the value of your home is less than the amount left to pay back on your mortgage. Negative equity makes it harder to switch your mortgage.
- Repayment history – The lender you apply to will carry out a credit check to measure the risk involved in giving you a mortgage. If you have missed repayments on your mortgage or you have had any other credit issues, this could make it more difficult to switch.
- Mortgage protection insurance – You could have difficulty in getting mortgage protection insurance if you have had a serious illness. You should check what type of policy you currently have and see what options are available at the new lender before deciding to switch.
I’m ready to switch – what’s next?
The switching process is relatively easy. If you are staying with your current lender and simply changing to a different interest rate and/or fixed period all you have to do is confirm your choice from the options provided to you. If you are switching to another product based on a change to your loan-to-value (LTV) rate or BER rating you may be required to provide a valuation report or BER cert (see section below).
If you are applying to another mortgage lender, either directly or through a mortgage broker, you will need to have a number of documents (see section below) ready and there will also be some costs involved in the process. You will have to complete a mortgage application and pay legal fees for a Solicitor to handle the switch.
What documentation do I need to move to another lender?
Broadly speaking all lenders require similar documentation when you switch your mortgage but your chosen lender will provide exact details of what you need to provide.
Here is a sample of the type of documentation that you may be asked for:
If you are a PAYE employee
- 3 months of payslips
- 3-6 months of current account statements
- Salary Certificate (Download the BPFI Salary Cert here)
- Employment detail summary
- Savings or loan statements
For Self-Employed/Sole Trader/Director of a Company/Partnerships
- 2 or 3 years of your most recent audited accounts or trading accounts certified by your accountant
- Your 2 or 3 most recent Revenue acknowledged Forms 11
- Confirmation of tax position from your accountant or ROS Charges & Payments Statement
- 6 months of your most recent current account business bank statements (if your business account is held with a different lender).
If you have any non-PAYE income you will need to confirm your tax affairs are in order. Documents that will support this include:
- ROS Charges and Payments statement confirming your tax is paid; or
- A letter of confirmation from your accountant confirming your tax affairs are in order, including any Revenue arrangements that may be in place.
Proof of identity & address
If you do not already have an account, such as a current or savings account, with the lender you are looking to switch your mortgage to, you will also need proof of identify and residential address:
- A current valid passport or current driving licence
- A current utility bill or current bank/ financial institution statement
Valuation Report
A Valuation Report is traditionally undertaken by a property surveyor to help determine the market value of your home. You will be advised when this is required.
BER cert
A Building Energy Rating (BER) certificate rates your home’s energy performance on a scale between A and G. A-rated homes are the most energy efficient while G-rated are the least energy efficient. In order to get a BER cert a survey must be carried out by an independent registered assessor. You can find out more about how to do this on the SEAI website here.
Contact details for mortgage lenders
AIB – 0818 303 035 or visit Mortgage Switcher | AIB
Avant Money — visit Avant Switcher Mortgages or by contacting any of its mortgage brokers.
Bank of Ireland – call 0818 365 850 or visit Thinking of Switching? | Mortgages | Bank of Ireland
EBS — visit Switcher (ebs.ie)
Finance Ireland — visit Switching Your Mortgage to Finance Ireland. Finance Ireland mortgages are available exclusively through a nationwide network of appointed mortgage brokers. A list of appointed brokers can be found on Finance Ireland’s website.
Haven — visit Switcher Mortgage | Mortgage Switch Ireland | Switching Cashback | Haven Mortgages
ICS Mortgages — Call 0818 427 427 or visit Switchers | ICS Mortgages | Residential Mortgages
PTSB – Call 0818 210 585 or visit Switching from another financial service provider (ptsb.ie)
Alternatively, customers may also wish to talk to a mortgage broker for impartial advice on their options:
Association of Irish Mortgage Advisors – www.aima.ie
Brokers Ireland – www.brokersireland.ie
Independent advice
We would also encourage customers to compare their options on the Competition and Consumer Protection Commission’s website which provides a wealth of comprehensive and independent information relating to switching lenders or changing mortgage type including a mortgage comparison tool.
If is also recommended that you contact a Solicitor who can talk you through the legal documentation, they will need you to complete regarding your property’s title deeds.
Further independent consumer advice:
Where can I find help if I am struggling with my mortgage?
If you’re struggling to meet your mortgage or other loan repayments, know that your bank or financial services provider is ready to help you.
The first step is to talk to your provider as soon as possible. Their experienced teams will explain all your options and work with you to find a way forward, whatever your situation.
Independent support and advice
DealingWithDebt.ie
The DealingWithDebt.ie website is hosted by Banking and Payments Federation Ireland and provides answers to some of the questions you might have as well as links and contact details for all the mortgage providers in Ireland.
MABS
If you need advice and assistance to deal with any type of debt, whether it is mortgage, loan, credit card or overdraft, you can contact the State’s Money Advice and Budgeting Service (MABS). The MABS service is a free, independent, confidential and non-judgemental service which is provided by skilled and experienced advisors for people who are in debt or at risk of getting into debt
The MABS Helpline, 0818 07 2000, is open Monday to Friday, 9am to 8pm. The MABS face-to-face service is available in over 60 locations nationwide – see www.mabs.ie to find your nearest MABS office.
Abhaile
Abhaile is a service to help homeowners find a resolution to their home mortgage arrears. It provides vouchers for free financial and legal advice and help from experts, which are available through MABS.
The aim of Abhaile is to help mortgage holders in arrears to find the best solutions and to keep them, wherever possible, in their own homes. A dedicated adviser will work with you and your lender to find the best solution for your situation.
Contact: 0818 07 2000 (Monday – Friday 9am – 8pm)
Visit the Abhaile website here.
The Insolvency Service of Ireland (ISI)
Where a borrower believes that they are insolvent i.e. unable to meet their loan repayments while maintaining a minimum standard of living they may be eligible for a personal insolvency arrangement. The Insolvency Service of Ireland (ISI) is responsible for the personal insolvency framework. Check out the website set up to help borrowers find out more about insolvency solutions at backontrack.ie
The Personal Insolvency Act introduced three new structures to deal with unsustainable debt, both secured and unsecured, as follows:
A Debt Relief Notice (DRN) to allow for the write-off of debt up to €35,000, subject to a 3-year supervision period.
A Debt Settlement Arrangement (DSA) for the agreed settlement of unsecured debt, with no limit involved, normally over 5 years.
A Personal Insolvency Arrangement (PIA) for the agreed settlement of secured debt up to €3 million (though this cap can be increased) and unsecured debt, with no limit involved, normally over 6 years.
Further details of the insolvency framework and the individual arrangements are available at the ISI website. View the ISI website here.
Citizens Information Board
The Citizens Information Board is the statutory body which supports the provision of information, advice and advocacy on a broad range of public and social services. You can get information and advice face-to-face at your local Citizens Information Centre by phone through the Citizens Information Phone Service on 0818 07 4000, or by accessing the Citizens Information website here.
FLAC
Free Legal Aid Centres (FLAC) is an independent charity that campaigns on legal issues. It provides an information and referral line (01 906 10 10) and organises evening Legal Advice Centres throughout Ireland in conjunction with the Citizens Information Board. Access the FLAC website here.
Competition and Consumer Protection Commission
The Competition and Consumer Protection Commission’s personal finance information website provides information and advice on a range of financial issues including managing your money, tackling debt and repossession and making a complaint.
You can find more helpful information about the Consumer Protection Code 2012 here and advice on switching your mortgage from the CCPC here.
Bankruptcy
Where a borrower believes that they are in serious financial difficulty and a voluntary payment plan or insolvency arrangement is not sustainable, they may consider bankruptcy. The rules regarding Bankruptcy were amended in 2016 to reduce the duration of an arrangement to 12 months, previously 3 years. The duration of a bankruptcy payment order was reduced from 5 years to 3 years, except in cases of non-co-operation or the concealment of assets when it can be extended for a longer period.
The Insolvency Service of Ireland (ISI) is responsible for the bankruptcy system and further details can be found at the ISI website.
Warning:
If You Do Not Keep Up Your Repayments You May Lose Your Home.
Warning:
The Cost Of Your Monthly Repayments May Increase.
Warning:
The Entire Amount That You Have Borrowed Will Still Be Outstanding At The End Of The Interest-Only Period. The Payment Rates On This Housing Loan May Be Adjusted By The Lender From Time To Time. (Applies To Variable Rate Loans Only)
Warning:
If You Do Not Meet The Repayments On Your Loan, Your Account Will Go Into Arrears. This May Affect Your Credit Rating, Which May Limit Your Ability To Access Credit In The Future.
document.querySelectorAll('.open-accordion-link').forEach(function(link) {
link.addEventListener('click', function(event) {
event.preventDefault(); // Prevent default link behavior
const targetSelector = this.getAttribute('data-target');
const accordionTitle = document.querySelector(targetSelector);
if (accordionTitle) {
const isActive = accordionTitle.classList.contains('elementor-active');
if (!isActive) {
accordionTitle.click(); // Simulate a click event on the accordion title
}
// Delay the scrolling to allow for the accordion animation to complete
setTimeout(function() {
accordionTitle.scrollIntoView({ behavior: 'smooth', block: 'start' });
}, 500); // Adjust the delay as needed based on the animation duration
}
});
});
© 2024 Banking & Payments Federation Ireland. All rights reserved.
