1.) Switching your mortgageYou don’t need to stay with the same lender for the full term of your mortgage. The
Irish mortgage markethas been shaken up in recent times with some new entrants offering enticing deals to
people who switch their mortgage, or
remortgage. There are a couple of reasons why you might want to switch your mortgage:
By switching to a
mortgage provideroffering a better interest rate, you could save a considerable amount of money over the term of the loan. Even paying half a percentage point less in your interest rate can mean a saving of thousands over the lifetime of the loan. Of course, variable interest rates are just that – variable – and there is no guarantee that your new lender won’t increase (or decrease) the rate over the remaining
term of the mortgage, unless you have
fixed the rate.
Where there is a penalty with your current lender for
paying off your mortgage early, you could switch lender, opt for a shorter term and be mortgage free sooner.
mortgage repaymentis probably your biggest outlay every month. If you need to cut back, you can reduce your monthly repayment by
extending the term of your mortgage. This does mean you will pay more in the long term, but it is helpful where you have cash-flow issues.
2.) Taking out a loan on the strength of your property
You may be able to borrow on the strength of your home or property at
mortgage interest rates, which are usually lower than standard loan interest rates. You can use the money for whatever you want – it doesn’t have to be property related. To work out how much you could potentially borrow, take the current
market value of your property, subtract how much you owe on your mortgage, and, depending on the lender, you could be able to borrow up to 85% of that figure. Sometimes people
remortgagein order to have a deposit for a second or
investment property. Read more about
investment property here.
Get Independent Advice Our