One in five homeowners could save money by switching mortgage lenders.
The Central Bank says 27 thousand mortgage holders could save up to 10 thousand euro over the lifetime of their loan. More than 100-thousand people on variable rate mortgages could make savings on their loans by switching to a lender with a lower interest rate. Research from the Central Bank says around 26-thousand people could reduce what they’re paying by around a thousand euro a year if they switched provider.
However, half of mortgage holders cannot find a cheaper rate – mainly because they’re on a tracker – and many customers are put off switching because they think it will be expensive.
A third of homeowners could make savings by switching but are not in a position to do so because of arrears or high loan to value ratios.
Currently just 38 homeowners a month are switching at the five main banks.