Switching  is the process of replacing your home loan with one another – usually this means paying off one mortgage with the proceeds for the new mortgage and using the same property as security .

This is normally done for the following reasons.

1: to get a better interest rate

2: for more flexibility / or to release equity to do a refurbishment of the property

3: to consolidate debt

The Mortgage Maker philosophy is that a person should review their home loan every 3-5 years, just like they would review car, home insurance to make sure they are always paying the cheapest rate available to them, after all a mortgage is the biggest monthly bill most people have.

At The Mortgage Maker, when we say when we say switching, we mean changing the interest rate, the term of the mortgage, the type of mortgage or any of the conditions attached to the mortgage.  Often when people think of switching, they are looking to reduce the monthly payment that they make – this is a perfectly reasonable outcome but is not the only one!

When we look to advise a person looking to switch their mortgage, we also other factors into account not just monthly repayments.  For example

  • The original loan will have been based on a loan to value at the time of purchase, and its very likely that they will have changed, your house may be worth more, and you may owe less, so for a bank you are a much better risk.
  •  When you purchased your home, it may have been envisaged it as a steppingstone, to a bigger property, however life may have altered for you in the meantime, family came along etc and the property is now too small, so you may have the scope to re-mortgage and take equity out of the property, to extend the property.
  • Security, with the introduction of long term fixed rates into the Irish market, you may just want to secure your mortgage repayments.

No matter what your reasons are, or your current situation, its is good to review your options and The Mortgage Maker are only too happy to advise you on them.