Switching Your Mortgage
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Are you overpaying for your mortgage? You probably are and if you are, you can make huge saving. We would strongly recommend anyone who took out a mortgage more than three years ago to contact one of our property solicitors to see how we can assist you.



Switching your Mortgage should be your New Years Resolution. According to a recent article in the Irish Times, more than 80% of people on standard variable rate home loans are likely to be overpaying. This echoes what we at Hanahoe & Hanahoe have been advising our clients to do for years as can be seen by our blog post, Switching Your Mortgage Could Save You Thousands Of Euro, of the 24th August 2015. Over the last two years mortgage rates have steadily dropped and banks are becoming more competitive on fixed rate mortgages. This has resulted in more than 80% of those on standard variable rate home mortgages paying significantly more than they should. Despite this, customers seem reluctant to switch with, the number of customers changing the mortgage provider being only a quarter of what it was at the peak of the boom.

The four main reasons for mortgage customer not switching are: –


  1. That they are unaware of the amount of money they can save by doing so;
  2. That they believe it is an awful lot of hassle, when in fact it is a relatively straight forward transaction from the customers end. The majority of preparatory work is completed by your conveyancing solicitor.
  3. That they are concerned about paying legal fees. It is true that in switching your mortgage you will incur legal fees; however, most lending institutions now offer some sort of contribution towards your legal costs, either by way of a cashback offer or straight payment to cover your legal fees.
  4. It is sometimes believed only those borrowers with a low loan to value ratio can benefit from a remortgage. This is not the case and even customers with a loan to value ratio of between 80-90% can benefit from switching their mortgage.


Case Study

An example given in the Irish Times article was of a couple who borrowed €300,000.00 over thirty years, three years ago, who are paying an interest rate of 3.5% with an outstanding balance of €288,820.00. On the assumption that this was less than 80% of the value of the property, the customers could move to a variable rate of 2.9% and save €85.58 per month or €1,027.00 a year. This would a deliver an estimate saving of €28,755.00 over the lifetime of the mortgage.

Alternatively, they could move to a fixed rate mortgage of 2.6% saving them a €138.40 per month or over €1,208.00 a year, with a potential saving of €32,160.00 over the lifetime of the mortgage.


Hanahoe and Hanahoe Solicitors LLP – Property Law Specialist

Award Winning Solicitors

For further information on switching the mortgage or indeed any aspect of property/conveyancing law, please do not hesitate to contact Hanahoe and Hanahoe Solicitors on 045-897784 (Naas Office) or on  01-5255637 (Dublin office) or, on LinkedIn or Facebook

This article is merely for information purposes and is not and should not be taken as legal advice. No solicitor/client relationship or duty of care or liability of any nature exists between Hanahoe and Hanahoe solicitors, until you receive written confirmation that we are acting as solicitors on your behalf.

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