Rockwell are absolutely delighted to partner with the Association and launched the new ATI Group Mortgage Scheme for members and their families in 2017. The topic of Mortgages is never far from the national discussion and these days are no different whether you are a 1st time buyer, looking to trade up or simply looking to switch to a better interest rate. Unfortunately, the mortgage application process has become even more complex and there is a huge amount of stress and strain involved on behalf of the borrower trying to comply with all of the bank’s requirements. That’s where we can help. Our award winning service is based on ensuring we keep things as clear cut as possible. We deal with the banks so you don’t have to.
At Rockwell, we specialise in providing group Mortgage Scheme’s and won the MoneyMate Best Mortgage Broker award earlier this year in recognition of our service offering in this area. We treat our role as advisors very seriously and ensure clients are fully aware of the implications of borrowing such as a large sum of money prior to proceeding to application, so everyone goes into the process with their eyes open. We also passionately believe in educating our clients so they fully understand what is happening at each stage of the process and help alleviate any concerns/confusion.
Our primary role as mortgage advisors is to get you the best interest rate possible on the best terms. This boils down to getting you the best interest rate and more importantly, demonstrating why even a small fractional difference in rates can mean huge savings over the term of your mortgage.
This is most evident for mortgage holders who are looking to get a better interest rate by switching to another lender. There are potentially thousands of euros to be saved by switching your mortgage. Banks are actively lending again in this area and have dropped their rates considerably over the past 18 months. This presents an opportunity for homeowners, who may feel they are paying over the odds on their interest rate, to potentially reduce the amount of interest they will pay over the term.
A lot of people switch their electricity and gas providers on an annual basis to receive a discount but rarely think of switching their mortgage, which in most households is the biggest expense. The amount you can save depends on the size of your loan, the value of the home for which you are borrowing, and how expensive your current lender is. A lot of people may not be in a position to switch, e.g. if you are currently in negative equity, have a bad credit rating or your circumstances don’t meet the banks criteria (not enough income, excess loans, etc.). Also, if you are on a tracker rate it’s extremely unlikely switching lender would make sense. If you are not sure if you could save, it is definitely worth reviewing because if you are in a position to switch you can save quite a lot. Here is an example of how much you can save on a mortgage of €250,000 over 20 years by simply getting a better rate:
Obviously, the bigger the loan, the longer the term and the higher your interest rate the more you are going to save. If you aren’t in the position to switch today, it is still worth reviewing your mortgage every 3-5 years as your circumstances change. There is mounting pressure on the banks to reduce their expensive variable rates and with more lenders eyeing up the Irish market, interest rates should drop. It’s important to bear in mind that you are essentially going through an entire mortgage process again which can take time. However, don’t let this put you off as the savings can be more than worth it and a number of banks are offering cash incentives to cover the cost of switching. For example, KBC and AIB are offering €2,000 for switchers while PTSB, EBS and Bank of Ireland are offering 2% cash back.
Can you save without switching?
The first thing we will do is contact your current lender to see if you can get a better rate. Most lenders will negotiate your mortgage rate on the basis of an up-to-date valuation of your home. Should your lender not offer you a better deal or there is a better offer elsewhere, then it is time to consider switching. If you are on a fixed rate then it is wise to wait until the fixed rate has ended before considering switching as the banks will charge you during this period. The Mortgage switch process usually takes between 6-8 weeks. If it saves you money and costs you nothing, then what are you waiting for?
So whether you are a 1st time buyer, trading up or are simply looking to switch to a better rate we’ll be here at Rockwell Mortgages to guide you through the process. Please call us on 01-2557981 or email ati@rockwellmortgages.ie or visit www.rockwellmortgages.ie