Compare switcher mortgage deals in Ireland
Switching your mortgage could help to reduce your repayments and save you thousands in interest. Compare remortgage deals and find the right switcher mortgage for you.
LatestMortgage interest rates
The European Central Bank (ECB) sets interest rates for the euro area every six weeks.
The base rate was cut to 4.25% in June 2024 after remaining unchanged since September 2023. Although further reductions are likely, rates are forecast to stay above 4% throughout 2024.
When the ECB rate changes, your lender can increase or reduce your mortgage rate if you’re on a variable rate, but is under no obligation to do so. Those on tracker mortgages may feel the impact of changes immediately.
If you have a fixed rate mortgage, the interest rate will stay the same until your deal ends.
What is a switcher mortgage?
A switcher mortgage is when you take out a new mortgage with another lender or your current mortgage provider, usually at a lower interest rate.
It’s also known as remortgaging and can provide additional borrowing funds, a shorter borrowing term, or a lower monthly interest rate.
You can remortgage your home with a new lender or arrange a new mortgage deal with your existing provider.
How much can you save by remortgaging?
It depends on your existing rate and the size of your mortgage but savings made by homeowners switching their mortgage has doubled in the past six months according to the latest doddl.ie Mortgage Switching Index.
Householders could be overpaying by up to €7,000 per year by not switching lenders, doddl.ie claims. As residential mortgage rates surpass 7%, you could save thousands of euros if you switch your mortgage to the lowest rate.
When is the best time to switch mortgage?
The right time to switch will depend on your reason for remortgaging and whether you’ll make a significant saving.
If you have a fixed rate mortgage, you may be able to lock in another rate a few months in advance of your term ending, but don’t switch until it’s penalty-free.
With a variable rate mortgage you’re not tied in, so you can remortgage at any time. You should keep an eye on rates and consider switching mortgages when they’re lower.
It’s worth looking for a mortgage well before your current fixed rate deal ends, or you risk spending time on the lender’s standard variable rate, which will be expensive.
To recap:
- Fixed rate mortgage: you’ll need to wait until the term ends or pay an early repayment charge (ERC) to your existing mortgage provider, but start your search before your terms ends
- Variable rate mortgage: you can switch mortgages at any time without penalty but double-check there are no exit fees
How to compare switcher mortgages
Our switcher mortgage search can help you compare deals and find the right one.
Whether you’re remortgaging to reduce your repayments, consolidate debt, or buy an investment property, it helps to compare offers across different lenders. If you only compare mortgages with your current lender, you could miss out on a much better deal with another lender.
Before you start, make sure you know:
What is loan to value (LTV?)
LTV is how the size of the loan compares to the property’s overall value.
So if the house you want to buy costs €300,000 and you need to borrow €255,000, you’ll have an LTV of 85%.
What does equity mean?
It’s the difference between your outstanding mortgage balance and what the property is worth.
For example, if you have a mortgage of €150,000 and the value of your property is €300,000, you have €150,000 equity. This also means your loan to value (LTV) is 50% because you owe half of what the property is worth.
What is negative equity?
This is where your mortgage balance is higher than the value of your property.
For example, if you have a €250,000 mortgage and the value of your property plummets to €220,000, you have €30,000 of negative equity.
Being in negative equity can make it harder to remortgage your property.
How much can you borrow when you remortgage?
Lenders still need to check your affordability even if you don’t want to increase your mortgage.
Affordability is based on things like your income and outgoings, which may have changed since you previously applied for a mortgage.
Here are some things that can affect how much you can borrow.
- Your loan to value (LTV)
- Your loan to income (LTI)
- How much equity you have
- Your credit rating
- Your outgoings
To find out exactly how much you can remortgage contact a mortgage broker (mortgage credit intermediary) or talk directly to your lender.
If you choose to switch lenders, you’ll need to apply for a mortgage in principle and then complete a mortgage application in full.
Switching will involve paying for a valuation of your property and solicitor’s fees, so you’ll need to ensure you save more overall. Find out more in our guide to switching mortgages.
How to use a switcher mortgage calculator
You just need to provide the property value, the mortgage amount and the repayment term.
Once you input your details, an online mortgage switcher calculator will show you how much your monthly mortgage payments could be from Ireland’s mortgage lenders and switcher mortgage deals based on your circumstances.
Can you remortgage to release equity?
Remortgaging to release equity means increasing your current mortgage and using the extra funds for something else e.g. home improvements.
Whether you can do this depends on:
- The loan to value (LTV)
- How much equity is in the property
- Creditworthiness
- Affordability
Speak to a mortgage broker (mortgage credit intermediary) or lender to check eligibility and how much you can borrow.
How long does it take to remortgage?
It varies depending on the lender and your circumstances, but you should allow between four and ten weeks.
If you remortgage with your current lender, the process may be quicker because they already have your personal details and may not require further checks.
Do you always need a solicitor to switch mortgages?
It depends on whether you’re switching to another lender. If you are switching lenders, you are applying for a new mortgage so you’ll need a solicitor to:
- Check and sign your mortgage offer letter
- Draw down the new mortgage and pay off the old mortgage
- Carry out searches on the new property (if you’re moving house)
Tips to get the best remortgage rates
Whatever your circumstances, plan ahead and make sure your credit record is in good shape.
Here’s what to consider to ensure you switch to the best mortgage and benefit from cheaper monthly repayments:
Once you’ve chosen a mortgage offer, you can submit a request for free advice from a mortgage advisor who will guide you through the mortgage switching process from start to finish.
Popular questions
What is the difference between a switcher mortgage and remortgaging?
A switcher mortgage and remortgaging are essentially the same thing.
Although some people use the term remortgage to describe topping up their mortgage with their existing lender, and a switcher mortgage to describe moving their mortgage from one lender to another - both terms describe taking out a new mortgage on an existing property.
What documents will I need for remortgaging?
It depends on whether you’re switching to a new lender or sticking with your current provider, but you’ll likely need:
- Photo ID like a driving licence
- Proof of address
- Three months of bank statements
- Wage slips (3-6 months)
- Evidence of any other income
Self-employed homeowners may need to provide accounts or other proof of income.
It is also worth accessing your credit record to check it’s up to date and accurate.
Why has my loan to value gone down?
If you have a repayment mortgage, you pay off the capital over time, which increases the percentage of your home you own.
This reduces your loan to value (LTV), which is good news when you remortgage, as having a lower LTV often means you can get a better interest rate.
Your LTV can also go down if the property’s value increases because you owe less in relation to what it’s worth.
Compare mortgage rates & deals
Find a range of first time buyer and home mover mortgage deals in Ireland using our comparison.