Cutting your mortgage rate can save you lots. Photo: Drazen Zigic

Are you rolling off a fixed rate mortgage in 2023?

If you are and you chose to fix your mortgage again, the next fixed rate you will be offered will be much higher. In turn, your monthly repayment will be much higher.

The last twelve months have seen a number of increases in mortgage rates. Rates as low as 1.95% (APR 2.26%) were available in early 2022.

Finance Ireland is now offering interest rates as high as 7.3% (7.29% APR). Some other lenders currently have interest rates starting at 3.1% (3.16% APR). Half a point rise could add €1,000 a year on a €300,000 mortgage. That equates to a huge difference in terms of monthly repayments.

A mortgage broker can provide the right advice and support to customers assisting them in switching lender. There are thousands of euro to be saved over the term of the mortgage. You could also reduce the number of years you pay the mortgage back over.

Are there costs involved in switching mortgage? Yes, but many lenders are incentivising switching and re-mortgaging with offers such as cash back on draw down or money towards legal fees. Cashback options have meant there are little to often no legal costs to switching mortgage.

Jacqui, a client of Mortgage Search, a Cork company recently said: “We were absolutely dreading the thought of switching provider and honestly had put it off for far too long. You know when you need someone to hold you by the hand and take away the headache?”

“My only regret is that we didn’t switch providers sooner and enlist the help of Mortgage Search, we could have saved ourselves so much.”

When should you review your rate? Mortgage Search recommend reviewing your options up to six months before your fixed rate expires. By the time a lender will let you know what your options are it could be too late to switch providers before your fixed rate expires.

They recommend giving them a call on 021-4220019 to see what options are available. They offer a no obligation chat and will advise you if you are better to stay with your current lender or look at alternatives.