Homeowners shopping around on mortgages
Homeowners are unlocking previously unattainable mortgage rates as rising property prices cause their loans to value ratios to decrease, the doddl.ie mortgage switching index has found.
And while many householders are feeling the sting of increased values through their Local Property Tax payments, there may be a silver lining as the doors are opened to record low mortgage switching rates.
House prices are rising at an average of €3,500 per month – over 12% annually – with many homeowners now gaining access to rates which are offered on a tiered basis tied to their loan to value ratios.
Lenders such as Avant Money and ICS Mortgages are currently offering fixed rates of 1.95% if applicants have a loan to value of less than 60%.
Homeowners can be needlessly paying an average €4,258 in extra mortgage repayments per year by not switching lenders, the index has found.
This is an increase of €735 over the past twelve months and means a monthly saving of up to €135 for every €100,000 owed on a 25-year mortgage for those who switch.
The index is based on the average mortgage drawn down for new lending in both the first-time buyer and second-hand mover markets in Q3 2021, currently €263,984.
The number of approvals for mortgage switchers increased by over 36% annually to the end of September representing the highest annualised level of switcher approvals on record.
“Consumers are becoming more aware of the recent downward shift in mortgage interest rates and are looking to capitalise on the strong loan to values in the current market,” said Martina Hennessy, Managing Director of doddl.ie.
For more, read this week’s Connacht Tribune.
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