Thinking of Remortgaging your home?
Follow our Remortgage guide for some handy tips!
If you are looking for a way to decrease your monthly outgoings then it makes sense to start by looking at one of your biggest monthly costs – your mortgage.
Most people will be paying their mortgage off over their adult lifetime, so switching mortgage providers every few years is a good idea if you are looking to get a lower interest rate, save money and reduce outgoings. A lower interest rate could result in you paying your mortgage off sooner while keeping your repayments at the same level.
This remortgage guide will provide you with some handy tips that will set you on your way to making some big savings.
What you need to know when remortgaging your house in Ireland:
How much could I save by switching my mortgage?
Making the decision to switch mortgage providers could save you a lot in the long run. For example, somebody who has a mortgage balance of €250,000 with a remaining term of 25 years on a variable rate of 3.9% (4% APRC) could save €74,375.64 over the mortgage term if they switched to a 4-year fixed rate of 1.95% (2.02% APRC).
It’s important to be aware that while you are saving by switching mortgages, there will be some other upfront costs that you will need to pay for the process of switching your mortgage provider i.e. legal fees, valuation report etc.
However, keep in mind that some lenders will offer a cashback of up to 3% of the mortgage amount as an incentive and this can be put towards these types of costs.
What are the steps involved in switching your mortgage?
There is also the potential to borrow additional funds when remortgaging by unlocking equity from your home. Additional funds can be borrowed for purposes such as home improvements, short-term debt consolidation and other one-off expenditures.
Assess your current mortgage situation
Get in touch with your current mortgage provider and find out the important stuff i.e., how much is left to pay on your mortgage, how long you have left to pay it and what the interest rate is. All of this information can also be found on your most recent mortgage statement. It’s also a good idea to know the current market value of your home.
Take the time to review all the mortgages on offer in the market to see which one is best suited to you and your needs. The easiest way to do this is by speaking to a mortgage broker. The Irish Mortgage Corporation team will be able to advise you on the mortgage providers that are currently active in the market and the potential savings you could make by moving to each.
Switch Your Mortgage
Once you have chosen your new mortgage provider, it’s time to start the switching process by getting approval. The Irish Mortgage Corporation team can assist by taking over this process and making it as stress-free as possible. We will also research any upfront costs, such as valuation reports or legal fees that you may need to pay, and will find out if your new provider will cover these costs as an added incentive to switch.
Don’t forget about your policies! Contact your current provider i.e. your mortgage protection and home insurance, to find out if they will still cover the mortgage once you have switched. Notifying your insurance broker is important as they will need to reassign your policy to your new mortgage provider.
Enjoy your new mortgage
Once you have set up a direct debit to your new provider then you’re all done. Sit back, relax and enjoy the savings you have made by switching your mortgage!
If you are thinking of remortgaging your home and would like to find out and discuss it with a remortgage expert, speak to a member of the Irish Mortgage Corporation team who can advise you on your options.