Top Strategies for
Switchers to Save Money
Top Strategies for
Switchers to
Save Money
AIB Group to Improve Switcher Offering
AIB Group, along with its subsidiaries EBS and Haven, has announced an increase in the cash bonus for customers who switch their mortgage with them. Starting May 27, the cashback offer will rise by 50% to €3,000. This move signals a revival of the switcher market, which had seen a decline following successive interest rate hikes.
The switcher market experienced a downturn after the European Central Bank implemented ten consecutive interest rate increases, causing banks and mortgage lenders to raise fixed rates. AIB’s decision to increase the switcher payment from €2,000 to €3,000 is a clear indication that competition is intensifying.
The increased switcher payment is part of AIB’s broader strategy to make their mortgage offerings more competitive, following a recent rate reduction of 0.2 percentage points across its green mortgage products. This cashback is intended to alleviate the financial burden associated with switching lenders, covering costs such as legal fees, valuation, and administrative expenses. The timing is perfect for those who had opted for the security of fixed-rate terms are now reaching the end of these periods.
However, it is important to note that that borrowers should evaluate all their options. AIB’s fixed rates are still over 1% higher than what is currently available on the market for those who don’t have a green rated home. To compare rates across the entire market and find the best one available to you, check out our comparison table below.
Switching Strategies
A mortgage switch or mortgage refinance is the process of moving your mortgage from one lender to a new lender. The term and interest rates of your mortgage tend to change and it is quite beneficial if you want to take advantage of lower interest rates. You can also switch if you are not thrilled with your current lender and are interested in a more friendly and understanding lender.
SOME OF THE CIRCUMSTANCES WHEN SWITCHING YOUR MORTGAGE IS AN EXCELLENT IDEA PRIMARILY INCLUDE:
- To save money by taking advantage of lower mortgage rates available in the market
- Reduce the term of your current mortgage, as you can opt to overpay and minimize the term of the mortgage
- Borrow extra money; if your property has increased in value, you can consider opting for a re-mortgage to release the equity of your property.
- If your fixed term ends
- If the ECB changes its interest rate and your mortgage costs change
CIRCUMSTANCES WHEN YOU MIGHT CHOOSE NOT TO REMORTGAGE INCLUDE:
- The current lender offers competitive rates: switching can be unnecessary if your current lender offers competitive rates and the fines you will incur when switching are exponentially high.
- Your credit score is poor
- You have switched your employment status to self-employed, as most lenders will require one year to ensure your income is sustainable to pay for your mortgage.
Ideally, switching your mortgage is the best way to save money. At our company we work with different customers who want to use the switching option to save money.
Some of your top switchers primarily include:
The Passive Switcher
The Cautious Switcher
The Artful Switcher
The Banker
The Clinical Switcher
1. 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.
2. The Cautious Switcher
Switching mortgages in Ireland is the best way to take advantage of lower rates. The cautious switcher switches to a lender offering lower rates which will help lower their monthly payments. However, you prepay or overpay in this switching process to improve your cash flow. Most lenders will allow an average of 10% overpayment on the fixed term loan, but you can overpay as much as you like for a mortgage with variable rates. This idea is recommended for borrowers who wish to switch to lower interest rates while enjoying the option of overpaying with the additional cash flow.
3. The Artful Switcher
The artful mortgage switcher is one who skillfully switches to a loan with a cashback offer and uses the money to settle a higher-cost debt. The method is ideal if you have personal or car loans, as you can use the cash back to pay those loans and take advantage of lower monthly interest payments.
4. The Banker
You can switch mortgages as a banker. The method allows you to switch with the cashback offer and use it to pay down your outstanding mortgage. Banking all your savings upfront is the most recommended method to pay your mortgage early enough, with minimum interest on the capital.
5. The Clinical Switcher
Mortgage switching in Ireland is quite streamlined with the clinical switcher option. In this method, you switch to a lower rate and minimize the mortgage term so that the monthly payments don’t change. You might not immediately notice the impact of the switch on your finances. But in the long term you will save tens of thousands from your mortgage by simply taking a few years off your loan repayment period.
1. 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.
2. The Cautious Switcher
Switching mortgages in Ireland is the best way to take advantage of lower rates. The cautious switcher switches to a lender offering lower rates which will help lower their monthly payments. However, you prepay or overpay in this switching process to improve your cash flow. Most lenders will allow an average of 10% overpayment on the fixed term loan, but you can overpay as much as you like for a mortgage with variable rates. This idea is recommended for borrowers who wish to switch to lower interest rates while enjoying the option of overpaying with the additional cash flow.
3. The Artful Switcher
The artful mortgage switcher is one who skillfully switches to a loan with a cashback offer and uses the money to settle a higher-cost debt. The method is ideal if you have personal or car loans, as you can use the cash back to pay those loans and take advantage of lower monthly interest payments.
4. The Banker
You can switch mortgages as a banker. The method allows you to switch with the cashback offer and use it to pay down your outstanding mortgage. Banking all your savings upfront is the most recommended method to pay your mortgage early enough, with minimum interest on the capital.
5. The Clinical Switcher
Mortgage switching in Ireland is quite streamlined with the clinical switcher option. In this method, you switch to a lower rate and minimize the mortgage term so that the monthly payments don’t change. You might not immediately notice the impact of the switch on your finances. But in the long term you will save tens of thousands from your mortgage by simply taking a few years off your loan repayment period.
How to Switch your
Mortgage in Ireland?
Each lender has their criteria when it comes to accepting mortgage switchers. When considering switching your mortgage to a new lender, it is paramount to consider the following factors.
Know your Mortgage Situation
It is imperative to find out how much you still owe and the remaining term on your mortgage. Ensure you identify the current interest rate you are paying. You can contact your lender and request an updated mortgage statement. Also, it would be best if you estimated the present value of your home.
Compare Different Lenders
Mortgage switch rates tend to differ depending on the lender you select. Ensure you compare the different rates and evaluate a lender offering ideal rates in the market. You can use the remortgage calculator Ireland, which will easily compare interest rates. The remortgage calculator will help you determine your new rates and the monthly payments you are expected to make.
Kick off the Switch Process
After considering the amount of your mortgage and the cost of changing mortgage providers, it is time to start the switching process. If you are unsure how to switch your mortgage, you can consider using the services of a mortgage broker.
The new lender must review your financial situation and value your home. The valuation needs to be updated so they can know how big your loan is compared to the home value. They need to establish how much equity you have.
Is Switching your Mortgage the Right Move?
Switching your mortgage is a brilliant financial decision. In most instances, it helps you take advantage of cheaper mortgage rates and obtain a fixed rate that will keep your monthly repayment rates relatively consistent. You might also need a mortgage that will suit your circumstances.
Before considering switching, you need to evaluate restrictions on your mortgage product. There may be exit fees but currently most customers are able to exit with no fees.
Final Thoughts,
Switching your mortgage is an excellent move to lower your mortgage rates.
Make an overpayment on your mortgage, reduce the mortgage rate, and deal with a friendlier lender. When considering switching, you need to weigh your options, such as the term remaining on your loan and any exit fees you are likely to be subjected to by your lender. We have outlined the top 5 strategies you can combine to maximize your benefits. You can also discuss with our mortgage experts and find a switching technique that works for you.
How to Switch your
Mortgage in Ireland?
Each lender has their criteria when it comes to accepting mortgage switchers. When considering switching your mortgage to a new lender, it is paramount to consider the following factors.
Know your Mortgage Situation
It is imperative to find out how much you still owe and the remaining term on your mortgage. Ensure you identify the current interest rate you are paying. You can contact your lender and request an updated mortgage statement. Also, it would be best if you estimated the present value of your home.
Compare Different Lenders
Mortgage switch rates tend to differ depending on the lender you select. Ensure you compare the different rates and evaluate a lender offering ideal rates in the market. You can use the remortgage calculator Ireland, which will easily compare interest rates. The remortgage calculator will help you determine your new rates and the monthly payments you are expected to make.
Kick off the Switch Process
After considering the amount of your mortgage and the cost of changing mortgage providers, it is time to start the switching process. If you are unsure how to switch your mortgage, you can consider using the services of a mortgage broker.
The new lender must review your financial situation and value your home. The valuation needs to be updated so they can know how big your loan is compared to the home value. They need to establish how much equity you have.
Is Switching your Mortgage the Right Move?
Switching your mortgage is a brilliant financial decision. In most instances, it helps you take advantage of cheaper mortgage rates and obtain a fixed rate that will keep your monthly repayment rates relatively consistent. You might also need a mortgage that will suit your circumstances.
Before considering switching, you need to evaluate restrictions on your mortgage product. There may be exit fees but currently most customers are able to exit with no fees.
Final Thoughts,
Switching your mortgage is an excellent move to lower your mortgage rates.
Make an overpayment on your mortgage, reduce the mortgage rate, and deal with a friendlier lender. When considering switching, you need to weigh your options, such as the term remaining on your loan and any exit fees you are likely to be subjected to by your lender. We have outlined the top 5 strategies you can combine to maximize your benefits. You can also discuss with our mortgage experts and find a switching technique that works for you.
HAVE QUESTIONS
Read our FAQ
You're called Switcheroo.ie but do you help First Time Buyers and Home movers?
Yes, we absolutely do. As long as you are looking to buy a residential property we stand ready to help. We like the name Switcheroo as you are switching home if you are a mover and even if you are a buyer you are switching from tenant to homeowner!!!
What’s the best mortgage I can get?
That’s a question we hear a lot but there is no simple answer to this. There are a number of factors to this which both you and we need to consider when you are thinking of getting a mortgage.
Mortgages come with different terms and banks use different criteria to establish who they lend to, how much and at what rate. Don’t stress too much! You can find out pretty quickly to see if it’s worth your while. From there we will guide you through the process and make sure you get the right mortgage for you and make the process as simple as possible.
If I am a switcher how much can I save?
The Central Bank of Ireland published research that showed that many existing mortgage holders can save over €10,000 euros by switching their mortgage. It will depend on your specific circumstances but just 20 seconds on our calculator will show you what its worth for you to switcheroo.
What documents will you need from me?
Initially, none. The first step is for you to take our Financial Health Check in your secure customer portal. This will help us understand your circumstances and see if you are mortgage fit but we don’t need documentation at that stage. Only later when we move on to preparing your submission to a lender, will we need to make sure that your information is accurate, and we’ll need documentation from you then. Those include proof of your identity, income, utility bills with proof of address, as well as things like visa status where it applies. We’ll always make it clear exactly what we need and why.
Do you perform credit checks?
Our job is to make sure that you have the best possible chance of being accepted. So, we perform our own affordability check before sending anything to a lender. This leaves no footprint on your credit history.
I want to switcheroo, what’s next?
On our website there are calculators that will help you figure out what you can save or what your mortgage would cost. From there you’ll need to register into your customer portal so we can perform a Financial Health Check on you to assess what you can afford.
If all is well, we will then ask for more details on your current circumstances and the specifics of the house you want to mortgage.
Usually, this shouldn’t take more than 60 minutes, and you’ll be one step closer to a mortgage. At this point, you can have a phone call with one of our mortgage experts. They will answer any questions you have and tell you exactly what documents you’re going to need. From there, the expert team will guide you through the application process and keep you updated on progress. You can check progress online and we will keep you updated along the way.
What does Switcheroo.ie do with my data?
It’s all explained in our privacy policy, but basically: we won’t spam you and we won’t pass on your data to other companies so that they can spam you. We hate that.
How does Switcheroo.ie make money?
Yep, we don’t charge any commission. If you get a mortgage using Switcheroo.ie, the lender you use pays us a commission. Some intermediaries charge you an additional commission but not us, we are free forever. These commission never affect our advice. Our reputation and livelihood depend on us always giving our customers the best possible advice. The important bit is we’ll never charge you a penny.
HAVE QUESTIONS
Read our FAQ
You're called Switcheroo.ie but do you help First Time Buyers and Home movers?
Yes, we absolutely do. As long as you are looking to buy a residential property we stand ready to help. We like the name Switcheroo as you are switching home if you are a mover and even if you are a buyer you are switching from tenant to homeowner!!!
What’s the best mortgage I can get?
That’s a question we hear a lot but there is no simple answer to this. There are a number of factors to this which both you and we need to consider when you are thinking of getting a mortgage.
Mortgages come with different terms and banks use different criteria to establish who they lend to, how much and at what rate. Don’t stress too much! You can find out pretty quickly to see if it’s worth your while. From there we will guide you through the process and make sure you get the right mortgage for you and make the process as simple as possible.
If I am a switcher how much can I save?
The Central Bank of Ireland published research that showed that many existing mortgage holders can save over €10,000 euros by switching their mortgage. It will depend on your specific circumstances but just 20 seconds on our calculator will show you what its worth for you to switcheroo.
What documents will you need from me?
Initially, none. The first step is for you to take our Financial Health Check in your secure customer portal. This will help us understand your circumstances and see if you are mortgage fit but we don’t need documentation at that stage. Only later when we move on to preparing your submission to a lender, will we need to make sure that your information is accurate, and we’ll need documentation from you then. Those include proof of your identity, income, utility bills with proof of address, as well as things like visa status where it applies. We’ll always make it clear exactly what we need and why.
Do you perform credit checks?
Our job is to make sure that you have the best possible chance of being accepted. So, we perform our own affordability check before sending anything to a lender. This leaves no footprint on your credit history.
I want to switcheroo, what’s next?
On our website there are calculators that will help you figure out what you can save or what your mortgage would cost. From there you’ll need to register into your customer portal so we can perform a Financial Health Check on you to assess what you can afford.
If all is well, we will then ask for more details on your current circumstances and the specifics of the house you want to mortgage.
Usually, this shouldn’t take more than 60 minutes, and you’ll be one step closer to a mortgage. At this point, you can have a phone call with one of our mortgage experts. They will answer any questions you have and tell you exactly what documents you’re going to need. From there, the expert team will guide you through the application process and keep you updated on progress. You can check progress online and we will keep you updated along the way.
What does Switcheroo.ie do with my data?
It’s all explained in our privacy policy, but basically: we won’t spam you and we won’t pass on your data to other companies so that they can spam you. We hate that.
How does Switcheroo.ie make money?
Yep, we don’t charge any commission. If you get a mortgage using Switcheroo.ie, the lender you use pays us a commission. Some intermediaries charge you an additional commission but not us, we are free forever. These commission never affect our advice. Our reputation and livelihood depend on us always giving our customers the best possible advice. The important bit is we’ll never charge you a penny.
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to
support you through your application
Don’t take our word for it, read what our customers think of us
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to
support you through your application
Don’t take our word for it, read what our customers think of us
THE SWITCHEROO.IE DIGITAL MORTGAGE PLATFORM
We focus on great customer experience to support you through your application
Don’t take our word for it, read what our customers think of us
Really happy with the advice and service provided by Switcheroo!! I was looking to switch to a better rate which they helped me with and having gone through this I will save thousands off the cost of my mortgage, and there are no charges for Switcheroo’s service. Definitely would recommend them and will come back to them when my fixed term ends.
Jairo
Switcher – CORK
Switcheroo people helped us through the process of the purchase of our new home, they have been extremely professional and very helping throughout all the phases, and even when the timeframe was tight for use they have been able to put us through the final stages. We couldn’t recommend anything better than their service, and if we ever need another mortgage we will know where to reach first.
Connie Robertson
Switcher – Galway
We would highly recommend working with this team! The online portal made everything really straightforward, and, in the end, we knocked 6 years off the term of our mortgage thanks to the great rate they secured for us
Ciaran and Denise
Switchers – Dublin
Switching our mortgage with Dylan as our agent has saved us thousands of euros. Dylan’s attention to detail, prompt replies, regular contact and friendly professionalism enabled us to negotiate our way through the process.
Kathleen
Switcher – Wexford
Very happy with our switching process with Alison from Switcheroo, everything carried out in a quick efficient manner. Even when additional information was required everything was handled very smoothly. Would highly recommend to anyone considering switching
Janice
Switcher – kildare
We switched our mortgage with Alison who helped us through the process step by step very efficiently. They have been very helpful, efficient and are excellent at their work. We saved thousands and I would recommend their services to anyone.
Niall
Switcher – Wicklow
Alison and the Switcheroo team were a great help in assisting us process our mortgage. Instead of having to deal with different customer service officials within the bank we had one point of contact in Switcheroo who kept us updated and kept the process moving.
Susan
First Time Buyer – Dublin
Switcheroo and especially Alison made the whole process as painless as possible. Her diligence and help in explaining and guiding us through the process was invaluable. I would have no hesitation in recommending Switcheroo
Gary and MJ
Switchers – Dublin
Alison and her team made a very daunting task of switching mortgage into something stress free. She supported us entirely throughout the whole process, and her advice was clear, concise and professional. We would have no issue recommending Alison and her team.
Andrea and Ian
Switchers – Meath
As first time home buyers, we found the online process of securing a mortgage very straightforward. It was easy to upload the documents and they responded to any queries we had immediately. We would definitely recommend them and will be using them again when the time comes to switch after the fixed rate expires.
Michael and Kate
First Time Buyers – Meath
We would highly recommend using the Switcheroo Team! The online portal made everything really transparent and straightforward. The team in Switcheroo successfully helped us get credit approval after we were turned down by another bank due to a minor credit issue. Luke and Dylan were so helpful and communication was brilliant.
Cannot thank the team in Switcheroo enough. We are now owners of our dream home.
Karen and Shane
Movers – Dublin
Switcheroo helps us switch our mortgage to a cheaper rate. I have to say that both Luke and Dylan were brilliant, they were the best that I have worked with in any financial institution! They were so prompt and pro active with any query I had and Dylan’s help over the last 2 weeks to hit our target date of today was exceptional. I got several updates per day and even when I called him on his day off, I got a text back within minutes. I will definitely be recommending to my family, friends and work colleagues to look at switching their mortgage with this team
Mark
Switchers – Galway
Really happy with the advice and service provided by Switcheroo!! I was looking to switch to a better rate which they helped me with and having gone through this I will save thousands off the cost of my mortgage, and there are no charges for Switcheroo’s service. Definitely would recommend them and will come back to them when my fixed term ends.
Jairo
Switcher – CORK
Switcheroo people helped us through the process of the purchase of our new home, they have been extremely professional and very helping throughout all the phases, and even when the timeframe was tight for use they have been able to put us through the final stages. We couldn’t recommend anything better than their service, and if we ever need another mortgage we will know where to reach first.
Connie Robertson
Switcher – Galway
We would highly recommend working with this team! The online portal made everything really straightforward, and, in the end, we knocked 6 years off the term of our mortgage thanks to the great rate they secured for us
Ciaran and Denise
Switchers – Dublin
Switching our mortgage with Dylan as our agent has saved us thousands of euros. Dylan’s attention to detail, prompt replies, regular contact and friendly professionalism enabled us to negotiate our way through the process.
Kathleen
Switcher – Wexford
Very happy with our switching process with Alison from Switcheroo, everything carried out in a quick efficient manner. Even when additional information was required everything was handled very smoothly. Would highly recommend to anyone considering switching
Janice
Switcher – kildare
We switched our mortgage with Alison who helped us through the process step by step very efficiently. They have been very helpful, efficient and are excellent at their work. We saved thousands and I would recommend their services to anyone.
Niall
Switcher – Wicklow
Alison and the Switcheroo team were a great help in assisting us process our mortgage. Instead of having to deal with different customer service officials within the bank we had one point of contact in Switcheroo who kept us updated and kept the process moving.
Susan
First Time Buyer – Dublin
Switcheroo and especially Alison made the whole process as painless as possible. Her diligence and help in explaining and guiding us through the process was invaluable. I would have no hesitation in recommending Switcheroo
Gary and MJ
Switchers – Dublin
Alison and her team made a very daunting task of switching mortgage into something stress free. She supported us entirely throughout the whole process, and her advice was clear, concise and professional. We would have no issue recommending Alison and her team.
Andrea and Ian
Switchers – Meath
As first time home buyers, we found the online process of securing a mortgage very straightforward. It was easy to upload the documents and they responded to any queries we had immediately. We would definitely recommend them and will be using them again when the time comes to switch after the fixed rate expires.
Michael and Kate
First Time Buyers – Meath
We would highly recommend using the Switcheroo Team! The online portal made everything really transparent and straightforward. The team in Switcheroo successfully helped us get credit approval after we were turned down by another bank due to a minor credit issue. Luke and Dylan were so helpful and communication was brilliant.
Cannot thank the team in Switcheroo enough. We are now owners of our dream home.
Karen and Shane
Movers – Dublin
Switcheroo helps us switch our mortgage to a cheaper rate. I have to say that both Luke and Dylan were brilliant, they were the best that I have worked with in any financial institution! They were so prompt and pro active with any query I had and Dylan’s help over the last 2 weeks to hit our target date of today was exceptional. I got several updates per day and even when I called him on his day off, I got a text back within minutes. I will definitely be recommending to my family, friends and work colleagues to look at switching their mortgage with this team
Mark
Switchers – Galway
