Thu Apr 23 2020

New Central Bank figures show that the average rate charged on new mortgages here over the past year was 2.91%. If we look back over the last decade, we can see that that last year’s average interest rate was the lowest during that time. In fact, the average interest rates were well above 4% until 2016, when they dropped to the high to mid 3% range.

The chances are that many homeowners are paying significantly more in interest than they could be, unless they are fortunate enough to be on a tracker rate mortgage. The cost of credit for homeowners is staggering. During these uncertain times, where many consumers are seeking to make financial savings on bills and living costs, they may find that a quarter of their income is being spent on their mortgage payments. While consumers are confined at home and actively looking at their outgoings, the largest of these for most, is likely to be their monthly mortgage repayment.

A Financial Broker can provide the right advice and support to these consumers and assist them in switching to a new mortgage provider and saving them thousands over the term of the loan. Switching a mortgage from one provider to another is currently not subject to the Central Bank of Ireland’s macro prudential rules, so you can switch up to 90% loan to value and income is not restricted to 3.5 times for most lenders.

Many lenders are now incentivising switching and re-mortgaging to obtain premium consumers with excellent loan to value ratios and proven repayment ability, with offers such as cash back on draw down, or money towards legal fees.  Please see below the breakdown per lender.

ICS Mortgages Dilosk

Rates from 2.45%. Public Sector worker income can be taken up 2 points on the salary scale. Multipurpose equity release.

Finance Ireland

Rates from 2.35%. Multipurpose equity release. Builder quote for 50k home improvements with no retention or final valuation. Debt consolidation. 20k un-vouched release.

Haven Mortgages 

Rates from 2.55%. €2,000 cash back for switching, which is to cover legal and valuation costs. Builder quote for up to 75k home improvements with no retention or final valuation.

KBC Bank

Rates from 2.45%, unless opening a current account with them, then you can get a further 0.2% reduction for the life of the loan. €30,00 cash back for switching, which is to cover legal and valuation costs. Discount of 25% on home insurance in the first year. 20k un-vouched equity release.

Permanent TSB

2% cash back in relation to the loan amount. 2% back on monthly repayment via explore current account until 2027.

It is important to note that while some lenders offer introductory rates you should always focus on the savings over the term of the mortgage. Due to Covid-19, people may now have a lot more time to consider switching their mortgage, a task they may have been putting off for years. Marketing switcher mortgages to your clients and packaging them to the lender directly or through the Brokers Ireland mortgage packaging service should ensure a steady stream of business that is not dependent on variables such as properties being available or people being ready to move.

Attached is the comparable rates sheet for your information. This highlights the significant savings that your customers can make.

Brokers Ireland Mortgage Services continues to offer its members choice in the Broker lender market, and an opportunity to expand its members mortgage business. Our main objective is to allow for access to almost all the lending institutions that operate through the Broker market.

Brokers Ireland Mortgage Services offers you a cost-effective processing facility. Some Financial Brokers feel that the time and cost of processing a mortgage application can outweigh the benefits gained.  You may not have the time to send in your applications and key it up on lender systems yourself, but if you are part of a packaging facility such as Brokers Ireland Mortgage Services these time consuming tasks can be done for you, in turn making the offering of a mortgage service to your clients more attractive.

For our latest Criteria Guide on Re-Mortgage/Switchers, or on any mortgage query, please contact Kimberley Hyland at or call 085 837 5602.

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