New research shows that less than a third of mortgage customers have considered switching as mortgage industry launches nationwide awareness and information campaign
- Only one in three mortgage customers have looked for information on mortgage rates available in the past six months
- New website InYourInterest.ie provides range of information on what to consider when switching mortgage and steps involved in getting ‘switcher ready’
- BPFI and mortgage lenders launch new standardisedalary certificate to streamline application process for customers
Wednesday 16th October 2024 – New research published today by Banking & Payments Federation Ireland (BPFI) shows that less than a third (28%) of mortgage customers have considered switching in the past year, only about one in three (34%) have looked for information on mortgage rates available in the past six months, while only 27% have researched mortgage products available in the market.
The findings further show that many customers are not aware of information which can be important when comparing rates, with 28% of mortgage customers saying they don’t know the current loan-to-value (LTV) ratio on their mortgage and a further one in four (25%) saying they don’t know their home’s BER or building energy rating.
BPFI and mortgage lenders launch nationwide information and awareness campaign on switching
The research comes as BPFI, in conjunction with BPFI mortgage lending members*, roll out a major nationwide information and awareness campaign which aims to encourage mortgage customers to look at their switching options, and outlines what to consider while shopping around as well as the steps involved in getting ‘switcher ready.’ Central to the campaign, which will be supported by a national radio, digital and social media advertising campaign, is the launch of a new online resource InYourInterest.ie, which provides a range of information for customers who want to learn more about mortgage switching.
Introduction of new standardised salary certificate
Additionally, BPFI mortgage lending members have introduced a new standardised salary certificate for mortgage applicants, meaning that anyone applying for a mortgage will only need one certificate completed by their employer, helping to streamline the application process for customers.
Speaking on the launch of the industry-backed campaign Brian Hayes Chief Executive of BPFI said: “As we move into what looks likely to be a changing interest rate environment, BPFI and our members are today launching this campaign to raise awareness about the choices available for mortgage customers and to make it easier to find information about the switching process.”
“And while switching may not be an option for everyone due to a variety of circumstances, according to our research published today, with about one in five (21%) mortgage customers saying they are on a variable rate mortgage and a further 11% saying they are due to come off a fixed rate within the next year, it is really important for consumers to inform themselves of what options are open to them.”
He added: “There are a variety of reasons why more people may not have considered mortgage switching, with the main reason being uncertainty about the steps involved, according to a recent ESRI report, as well as uncertainty about the costs and benefits and the fear of making a mistake. Through our new website, InYourInterest.ie, we hope to help mortgage customers get started on the process more easily, by answering common questions about how the switching process works so they can start shopping around and see if there is a better product or rate available to them.”
Mr Hayes continued: “While switching mortgages can take time, it can result in significant savings for customers’ monthly repayments through lower interest rates offered by another lender or through a different product from their current lender. In fact, analysis by the Central Bank of Ireland shows that mortgage customers who switched between 2019 and 2022 saved an average of €2,000 per year. Moreover, some customers may not be aware that since they first took out their mortgage, factors such as a decrease in the loan-to-value (LTV) ratio of their property or an improved Building Energy Rating (BER) could also impact the savings that can be made through switching.”
“Today we are encouraging mortgage customers to take the first step in reviewing their current mortgage and assessing their options, be that by looking up our new website InYourInterest.ie or talking to a lender, broker or other independent financial advisor. For most consumers their mortgage is their biggest financial commitment and equipping themselves to review that on a regular and ongoing basis could reap significant financial benefits.”
For more information on mortgage switching and the steps involved, visit www.inyourinterest.ie.
The new standardised BPFI salary cert can be downloaded here and is now accepted by AIB, Avant Money, Bank of Ireland, EBS, Finance Ireland, Haven, ICS Mortgages and PTSB.
Ends/
* BPFI mortgage lending members are AIB, Avant Money, Bank of Ireland, EBS, Finance Ireland, Haven, ICS Mortgages and PTSB.
The BPFI Mortgage Switching Research Survey was conducted in October 2024 by Coyne Research amongst a nationally representative online sample of 1,000 people.
Note: Banking & Payments Federation Ireland represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 110 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Fiona Murphy, Head of Communications, 087 9740046, Fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
