Mortgage switching war to increase as homeowners urged to look at “big picture”

Ahead of a significant pick-up in switching activity which is expected in the coming months, borrowers are being urged to weigh up their mortgage options carefully and to compare the long-term costs of mortgages across the market so they get the best deal when moving to another lender or staying with their existing one.

This advice, from the Association of Irish Mortgage Advisors (AIMA ), comes in the wake of a recent intensification in competition amongst the various lenders, with a number cutting their mortgage rates and launching enhanced switching incentives. AIMA believes that mortgage switching activity will pick up in the coming weeks and months as a result of a combination of factors namely, new switching incentives, the expiry of more than 100,000 fixed rate mortgages over the next year, and the expected ECB rate cut this June. AIMA believes that many borrowers will be keen to switch to best value mortgages and therefore likely to be enticed by switching incentives.

Recent moves by lenders include:

The launch by Avant Money of its first ever mortgage switching bonus – a cashback offer worth 1pc of the value of the mortgage drawn down. Avant Money also significantly cut its mortgage interest rates in early May.

The announcement by AIB, EBS and Haven that they will increase their switching bonus from €2,000 to €3,000 from May 27[2], as well as a reduction in their green mortgage rate offerings.

Reductions by PTSB to a number of its mortgage interest rates.

The launch by Bank of Ireland of its EcoSaver Mortgage range, which offers discounted rates, depending on the Building Energy Rating (BER ) of a property.

Consumer Protection Changes

AIMA has said it is supportive of any measures which will help consumers better compare the overall cost of mortgages on the market.


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