Five winning strategies switchers are using to save money
Everyone knows that switching your mortgage is a great way to save thousands off the cost of your mortgage but at Switcheroo.ie we are working with customers who are using their mortgage switch in different ways to save money depending on their specific circumstances. Check our top five favourite switchers:
- The Passive Switcher: Switch to a lower rate and lower your monthly payments. There are plenty of low-rate fixed term products out there so if you are looking to feel better about your finances and have more fun money this works well.
- The Cautious Switcher: Switch to a lower rate and lower your monthly payments but prepay/overpay as your cashflow position improves. Some banks allow up to 10% overpayment over the fixed term, and you can overpay as you wish for variable rate products. This strategy works well for you if you want to reduce your payments and have the option to overpay with your additional cashflow.
- The Artful Switcher: Switch with a cashback offer and paydown other higher cost debt. For people who have car/personal loans or credit cards moving with a cashback offer can be a clever way to paydown other higher cost loans that they may have built up thus reducing your overall monthly interest payments
- The Banker: Switch with a cash back offer and then paydown your mortgage by the cashback amount. Banking the savings upfront is a sure way to paydown your mortgage quickly, with less interest to pay on your capital outstanding it’s a switch that keeps on giving.
- The Clinical Switcher: Our favourite, switch to a lower rate but reduce the term of your mortgage so that the monthly payments are the same. You may not notice the impact this has on your finances in the short term but over the long terms taking a couple of years off your mortgage could save you tens of thousands.
Switching is always a good move and while we have outlined our top 5 favourite strategies many of these can be combined to maximise your savings. Register @Switcheroo.ie to discuss with one of our mortgage experts how you can best optimise your switching strategy.
Alison Fearon is Managing Director of Switcheroo.ie
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