Are you among the many Irish homeowners who haven’t explored the potential of mortgage switching? Despite the tremendous savings, a staggering number of people in Ireland never switch their mortgage – less than 3% of mortgages were switched in the first six months of 2019, according to the Central Bank of Ireland.
Why do people hesitate to switch?
- Lack of Awareness: Many homeowners don’t realise how much money they could save by switching their mortgage.
- Difficulty Comparing Mortgages: Comparing mortgage options can be challenging, leading to uncertainty and indecision.
- Perception of Complexity: The belief that the switching process is too long and complicated can deter potential savers.
Save Thousands with LFS in 4 Simple Steps
- Evaluate Your Current Mortgage: We will begin the switching process by assessing your current mortgage terms, outstanding balance, and remaining loan term. Our dedicated advisors will then conduct a thorough evaluation to identify potential savings opportunities.
- Explore Tailored Solutions: As independent financial advisors, we have access to an extensive network of lenders and mortgage options tailored to your needs. We’ll help you find the best solution to suit your financial goals and objectives.
- Calculate Potential Savings: Our expert team will crunch the numbers and show you precisely how much you could save by switching your mortgage. Prepare to be pleasantly surprised by the possibilities!
- Navigate the Switch Process: Once you’ve chosen the optimal option for your situation, we’ll guide you through the mortgage switch process seamlessly. Our experienced team will handle all the paperwork, ensuring a hassle-free experience.
Factors to Consider Before Switching
- Understanding Your Loan-to-Value (LTV) Ratio:
Your LTV ratio is a crucial factor lenders consider when you apply for a mortgage. It represents how much you owe on your mortgage relative to the current value of your home. To get an accurate LTV, you need an up-to-date valuation of your property.
- Outstanding Balance and Minimum Loan Amounts: If your outstanding mortgage balance is relatively low, you might face challenges when switching. Some lenders have minimum loan amount requirements, so we help you to navigate this aspect and find lenders who are flexible and accommodating.
- Overcoming Negative Equity: Being in negative equity, where you owe more on your mortgage than your property’s current value, can be a roadblock when seeking a mortgage switch. However, our team is well-versed in handling such situations. We’ll explore viable options and work diligently to find the right solution for your unique circumstances.
- Considering Mortgage Terms: Different lenders may have minimum or maximum loan term restrictions when it comes to mortgage switching. Our dedicated advisors will thoroughly assess your needs and match you with lenders offering terms that align with your financial plans. Whether you’re seeking a shorter or longer mortgage term, we have you covered.
- Repayment History and Credit Check: Lenders pay close attention to your repayment history and credit score during the mortgage application process. Our experienced team will conduct a comprehensive assessment of your financial obligations and credit history, ensuring you have the best chance of approval for a mortgage switch.
- Handling Fixed-Term Challenges: If you are currently on a fixed-rate mortgage and considering a switch, you might face charges for leaving your fixed term early. Our advisors will conduct a thorough cost-benefit analysis, weighing the redemption charge against potential savings from switching. Alternatively, we can help you plan for a strategic switch once your fixed term is nearing completion.
Call us at 01 801 5808 or email us at query@LFS.ie to schedule your free mortgage review with Lyons Financial Services. Let’s pave the way to a brighter financial future!
Disclaimer: This article provides general information. Specific savings and results may vary based on individual circumstances. Please consult our qualified advisors for personalised advice.