Remortgage

Refinance (switching lender) or Remortgage

In the past two years some lenders have chosen to leave the Irish Mortgage Market and others have chosen to increase their interest rates to remain profitable. Others have changed how they lend, who they will lend to and how much they will lend.

A combination of our lending experience and lending qualifications means we are in a strong position to advise you on the best options available to you in the market now.

Below gives an outline on the options available under either Refinance or Remortgage.

Refinance Mortgage

Refinancing means paying off an existing mortgage and taking out a new one, mainly to replace it with a cheaper mortgage rate. Homeowners may choose to refinance for any number of reasons, including:

    •    Lower the interest rate on their existing mortgage and/or other loans.
    •    Change a loan rate
    •    Own your home faster
    •    Lower interest rate

Obtaining a lower interest rate on an existing mortgage is one major reason homeowners choose to refinance. By refinancing to a lower interest rate, homeowners can reduce their monthly mortgage repayments. You can also add in other short term loans to try to reduce your outgoings. However, there are usually some fees and costs involved which can be offset against savings made. Generally, if a homeowner refinances to reduce costs, you are spreading a short term loan over a longer term so we recommend that you try to get your mortgage term down as quickly as possible to avoid paying higher interest costs in the medium to long term.

Change the loan from Fixed to Variable or Variable to Fixed

Homeowners with a variable rate (or tracker) mortgage can change to a fixed rate by refinancing. This option can offer protection against rising interes rates and some peace of mind in the long term. As interest rates rise, so will mortgage repayments. Homeowners with a fixed-rate mortgage will have no increase in their monthly payments for the duration the rate remains fixed, i.e. 2-year, 5-year, 10-year etc. It is also possible to switch from a fixed to a variable rate mortgage. However, there are often costs associated with this option and we can advise if this is worth your while.

WARNING: As Tracker rates are no longer available, we strongly recommend you speak to one of our team before you give up this product. If you are on a Tracker rate and switch to a fixed rate, you will lose your Tracker rate. We have a certificate in Mortgage Practise and a Diploma in Mortgages, so can answer any questions you might have.

Own your home faster

Refinancing helps people own their homes faster. Homeowners can do this by availing of a mortgage over a shorter term, reducing from a 30-year to say a 25-year term. This option will work for those who can afford to absorb higher monthly mortgage payments. Generally, the longer the term on a mortgage, the more interest you paid.

We aim to have clients mortgage free by retirement age of 68 years or earlier.
Mortgages should be reviewed and managed on a regular basis (about every two years).
Remortgage -Take advantage of the existing equity in your home
Due to the major change in the property market in the last few years, a lot of people are now choosing to stay in their home and carry out home improvements or perhaps extend their home.

Homeowners can borrow against the equity in their homes (current value of your house less any mortgage outstanding on it). However, banks generally restrict how much “equity release” or extra cash a homeowner can borrow. As the cost of building has fallen over the past few years and the cost to borrow has fallen significantly, remortgaging your house to get home improvements done is now very popular. 

EG if you have a house worth €300,000 with a mortgage of €150,000 and you want to extend but need €50,000. You would be borrowing €200,000 in total, either with a new lender 9For a better rate) or as a top up on your existing mortgage (Assuming you have a good rate).

    •    Fixed and Variable loans available
    •    Free financial health check report –see our site www.financialhealthcheck.ie
    •    Interest-only mortgage options
    •    Reduced Legal Packages
    •    Incredibly low interest rates
    •    Preferential repayment terms and conditions
    •    Quick decisions and fast approvals
    •    Fast, friendly service
    •    Wide choice of Irish mortgages available

Warning: The cost of your monthly payments may increase, if you do not keep up your repayments, you may lose your home.  
Warning: The entire amount you have borrowed will still be outstanding at the end of the interest-only period.  
Warning: You may have to pay charges if you pay off a fixed-rate loan early  
Warning: This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term.