Revealed: mortgage switch savings reach €3,400 a year

19 September 2019

Publication: Irish Independent

Author: Charlie Weston

Beat the banks: Home-loans gap has widened by almost €900 in past year

Consumers ‘becoming more aware’: Mortgage switching expert Martina Hennessy, managing director of 
Photo: Conor McCabe Photography
Thousands of homeowners are needlessly overpaying their banks because of their failure to switch mortgage lender.

The cost to the average mortgage holder has now reached €3,400 a year - a rise of almost €900 since a year ago.

The Irish Independent Mortgage Switcher Index calculated the potential savings, based on the spread between the highest and lowest interest rate on the market.

It found that the gap between the current available rates has grown to 2.2pc.

Over a month, this amounts to a saving of €281 for the average home mortgage, according to the index produced by switching platform

There is a golden opportunity to switch as homeowners have risen out of negative equity, so common during the recession, while Central Bank rules have made switching easier.

Some banks are even offering cash lump sums to switchers.

Switching rates has increased lately but many homeowners are still reluctant to move their mortgage to a different lender.