Switching your mortgage can be a great way to save money, reduce your monthly repayments, or secure a better interest rate. However, the process isn’t always straightforward, and many homeowners in Ireland make costly mistakes that can reduce the benefits of switching.
If you’re considering a switching mortgage, avoiding these common pitfalls can help ensure a smooth transition and maximise your savings.
1. Not Checking Your Current Mortgage Terms
One of the biggest mistakes homeowners make is failing to review their existing mortgage terms before considering a switch. Important factors to check include:
- Your current interest rate – Are you on a fixed or variable rate?
- Breakage fees – If you’re on a fixed-rate mortgage, you may have to pay a penalty for switching early.
- Remaining loan term – Will switching actually benefit you in the long run?
- Loan-to-value (LTV) ratio – Has your property value changed, and