How much can I save by switching my mortgage?


In this video we’re going to look at
some of the potential savings you could make by switching your mortgage. There’s
recently been some mortgage rate reductions in the Irish market, so we
thought it would be a good idea to check out who’s offering the best value for
those who are thinking of switching. These comparisons are based on somebody who’s currently paying a 4.5% standard variable rate and who’s looking to switch a mortgage of €250,000 over 25 years and who has a loan to value ratio
of between 60 and 80%. The best rate on offer at the moment is a 2.3% fixed rate over 2 years from Ulster Bank This works out at a repayment of €1,096 a month, or a saving of just over €293. The next best rate is a 2.6% fixed rate over 4 years, which is also from Ulster Bank. This works out at a repayment of €1,134 a month or a saving of just over €255. In third place is, again, Ulster Bank with a 2.85% fixed rate over three years and five years. In this case though, you’ll need to have an Ulster Bank current account to avail of these rates. This works out at a repayment of €1166 a month, or saving of over €220 a month. Next is KBC, who have a 2.9%
fixed rate over 1 and 3 years. Again, you’ll need to have a KBC current
account to avail of this rate. This works out at a monthly repayment of €1172 a month, or a saving of €217 a month. If you’d prefer the flexibility of a variable rate, the best on offer is 2.95% from both AIB and Haven. This works out at €1,179 euro a month or a saving of just over €210. In recent times, Irish mortgage holders have been slow to switch mortgage but, as you can see… …the potential savings for those who do are quite big. Of course, it’s important to bear in mind that there are costs costs associated with switching mortgage provider. However, these days many banks will provide a cashback incentive to those who switch
or a contribution towards your legal fees. So, there’s some of the savings you could make by switching mortgage provider. For more information, read our blog comment below or check out some of our videos. Thanks for watching!

Paul Whisler

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