EDUC Mortgages Blog

Why Reviewing and Switching Your Mortgage Makes Good Financial Sense

by | Mortgage Advice

For many homeowners in Ireland, a mortgage represents the largest financial commitment they’ll ever make. However, once secured, it’s easy to become complacent and assume that the initial terms and conditions will remain favourable indefinitely. In reality, regularly reviewing and potentially switching your mortgage can unlock significant savings and opportunities, and make strong financial sense.

Why a proactive approach to managing your mortgage can benefit you as a homeowner:

Benefit from Changes in the Mortgage Market:

The mortgage market in Ireland is ever-changing and is influenced by economic conditions, regulatory changes, and competitive pressures. What might have been the best deal on the market when you first secured your mortgage may now be surpassed by newer more favourable options. By regularly reviewing your mortgage, you can capitalize on these changes and secure better terms that align with your financial goals.

Only in the past two years in Ireland for example, Green Rate mortgage products now offer more competitive interest rates for those buying more energy efficient homes.

Take Advantage of Competition Between Lenders:

The Irish mortgage market is competitive at present. While the Irish lending market took a hit with the loss of KBC and Ulster Bank in recent years, new mortgage providers such as Avant Money and MoCo are now offering alternatives to traditional lending banks.

Lenders in Ireland are also vying for customers and are actively offering incentives, albeit these are usually retained for new as opposed to existing customers. New and increased cashback offers for example, along with more competitive rates, are enticing many customers to look at switching mortgage provider. By regularly reviewing your options and being open to switching lenders, you can unlock benefits that may not have been available when you initially secured your mortgage.


Reduce the Burden of Mortgage Interest:

Interest rates play a pivotal role in determining the overall cost of your mortgage. Even a small reduction in rate can lead to substantial savings over time. In Ireland, interest rates have soared to their highest levels in recent years. It is envisaged, however, that these rates may begin to come down as the ECB is expected to cut its rates from June 2024  – this would be welcome news indeed!

Reviewing your mortgage with the help of a mortgage broker could see your interest rate reduced. This decrease not only alleviates financial strain but can pave the way for long-term savings or releasing funds for alternative investments or lifestyle improvements.

You also have the option of negotiating and reducing the term of your loan when switching to another provider, thereby offering you the possibility of clearing your mortgage sooner. You may in fact decide to do the exact opposite and extend your loan duration to reduce monthly payments, providing you greater flexibility in financial planning.

Harness New and Flexible Mortgage Product Features:

Mortgage products continue to evolve, and newer products can offer a range of features and flexibility that may not have been available when you first took out your loan. Flexible repayment options, for example, that enable borrowers to put lump sum payments against their loan amount can help to clear the mortgage faster thereby saving you in interest repayments. By reviewing your mortgage, you can identify opportunities to access such features enhancing your financial flexibility and control.

Switch Your Mortgage to Match Your Evolving Lifestyle

While securing a mortgage is a significant milestone, it’s important to recognise that your financial needs and circumstances may evolve over time. Regularly reviewing and potentially switching your mortgage enables you to adapt to market changes, take advantage of competitive offerings, and opportunities that you may otherwise miss out on. Proactive engagement is key to maximising the returns on your biggest financial commitment.


Review and Switch Your Mortgage with EDUC Mortgages

At EDUC Mortgages, we have been helping teachers and public sector workers secure and switch their mortgages for over 20 years. While the idea of switching might sound complicated, it doesn’t have to be.

Our team of advisers can review your mortgage situation and, depending on your present circumstances and future ambitions, we can provide a seamless and stress-free switching experience.

Contact us today for a mortgage review, and see if switching your mortgage take you a step closer to greater financial freedom and control.