How to switch your mortgage in 2021

Would you like more money in your pocket this year? Then switch your mortgage to make some major savings.

It’s almost guaranteed that your mortgage is your biggest household expense. By switching your mortgage, you could reduce your monthly bills significantly.

So could switching your mortgage be right for you?

We’ll share everything you need to know, from how much you could save to what the steps involved are, in this post.

What are the savings I could make by switching my mortgage?

First things first, let’s talk about money!

The short answer is you could save a lot of money by switching. 

There are mortgage products in the market with far lower rates, but many Irish households are paying much higher rates than they should be. 

In fact, it’s estimated that more than 220,000 households in Ireland are paying rates up to 4.50% when the lowest mortgage rate on the market is 1.9%.

Let’s say you have a mortgage deal with a 4.5% interest rate over 30 years. If you switch to a new mortgage with a 2.2% rate, you will pocket savings of €127 for every €100,000 you owe.

If your mortgage is currently €300,000, this simple switch will make savings of €4,572 to your household budget per year.


That’s already an impressive figure. 

But now multiply that out over the entire duration of your mortgage. Over just five years, you’ll save €22,860. 

And remember, these are tax-free savings.

Many lenders also offer cashback offers to encourage switching. These offers cover the upfront costs, including legal fees, of switching your mortgage.

Is switching right for you?

We help clients switch their mortgage all the time. 

Switching your mortgage is an option for many people, but there are some considerations to take into account.

  1. How much do you still owe on your mortgage? Banks, in general, will consider switching mortgage applications for outstanding mortgage balances of €40,000 and higher.
  2. Are you on a fixed-rate mortgage? You might be charged a penalty if you switch out of a fixed-rate mortgage. It’s important to run the numbers to see what this will cost you. We will help you do this.
  3. What is your credit rating? You need to have a good credit rating to avail of a mortgage switch offer. 
  4. How much equity do you have in your home? If you have less than 10% equity in your home, or you’re in negative equity, you might have difficulty switching your mortgage.
  5. How long is left on your current mortgage term? Generally, lenders would prefer you to have quite a few years left on your mortgage term still. 

When you have all the information covered in the five points above, it’s time to approach your mortgage switch in a step-by-step way.

Switch your mortgage by following these steps

We work with our clients in a methodical way to help them switch their mortgage.

  1. Once we know how much you owe on your mortgage, we begin comparing mortgage products. We’ll use our mortgage calculators and comparison data to find the ideal mortgage for you.
  2. We’ll share our findings with you and support you with the documentation you’ll need to provide to switch your mortgage. These documents include:
    1. Proof of address – most household bills will suffice as long as they’re dated within the last three months
    2. Proof of your income – three recent payslips + your latest EDS (previously your P60)
    3. Statements – including those for loans and credit cards
    4. Statements of savings
    5. Status of your employment 
    6. Proof of identity
  3. The next step is to get a professional valuation of your home for  your new mortgage. Don’t worry, we will arrange this for you. The more equity you have the better the mortgage rates on offer.
  4. Now we’re at the point where the legal bit starts. You’ll need a solicitor to help with the conveyancing element of the transaction. These fees could be covered by the cashback offers many lenders provide.
  5. Mortgage protection is still required for switching as much as it is for first time buyers. We can advise you of the best deals available.
  6. Set up a direct debit. When your new mortgage is approved, we will request you to complete a new direct debit for your new repayments.
  7. And now you’re done! Congratulations on your new mortgage!

Switching your mortgage could be a lot quicker than you expect. The CPCC has a rule that lenders have to provide an answer within 10 days of “receiving a completed mortgage application”.

Are you interested in switching your mortgage? Contact us today to find out more. We’d love to help you every step of the way.