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Switching mortgages

  • 13-06-2023 4:58pm
    #1
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,169 ✭✭✭


    Hi

    My parents are looking at switching mortgage provider to reduce repayments. They have never gone through this process so I'm trying to help them as best I can.

    Are they better off using a broker service to handle this? The mortgage is interest only atm, but one of the quotes online was similar to their interest only amount.

    I was thinking of using a service called doddl. Any ezoerienxe/ advice?



Comments

  • #2
    L1011
    Registered Users, Registered Users 2 Posts: 71,117 ✭✭✭✭L1011


    I would not expect any loan offers to be made to someone paying interest only.

    You need a solicitor to handle the mortgage registration, this will cost the guts of a grand in most cases.



  • #3
    antimatterx
    Registered Users, Registered Users 2 Posts: 3,169 ✭✭✭antimatterx


    Thank for the reply @L1011

    Thats my fear. Even though with the new rate from switcher.com the new full repayment will be similar to the current interest only payment.



  • #4
    L1011
    Registered Users, Registered Users 2 Posts: 71,117 ✭✭✭✭L1011


    https://www.boards.ie/discussion/comment/120710863#Comment_120710863

    Doesn't change the basis that the existing loan isn't being serviced / is under a rearrangement - unless it was taken out as interest only at day one, which I presume is not the case?

    Talk to a proper broker about it to see the options - there may be something with the existing bank also - but if it is changed from an original interest+capital deal it is going to be a massive red flag.



  • #5
    Calculator123
    Registered Users, Registered Users 2 Posts: 177 ✭✭Calculator123


    Mortgage switching, while not hard per se, is not akin to switching electricity or gas supplier. The paper work is much the same as a new mortgage and the solicitor fees not far off either. I have done it twice. To offset the solicitors fees you need to be saving a lot on the future interest rate/ repayment to make it worthwhile. You still need the usual payslips, employer letters, tax statements and so forth.

    Make sure you do the maths first. If it does save on repayments substantially, then I highly recommend it. I'm paying about 500 euro less per month now as a result of the switches.

    With recent rate rises, I'm not sure there's an awful lot of value out there these days though.



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