Switching Mortgage?

Thinking of switching mortgage? You might have a bit of difficulty doing this recently. Why? Continue reading to find out.

The banks are being accused of trapping people to stop them switching mortgage providers. This comes after a number of banks have cut their fixed mortgage rates to try and attract new customers and tie in current customers. Bank of Ireland are the latest bank to use this tactic, when they recently cut their fixed rates by 0.10% to 0.35%. As a result of this Bank of Ireland has said that 7 out of ten new customers are deciding to go with a fixed rate for a defined period.

These latest changes to try and acquire new customers and keep current one’s shows us that the mortgage market is heating up and providers are scared of their existing customers switching mortgages. By reducing the fixed rates and not variable rates, they are able to tie people in. BOI was always known as quite an expensive lender, so this shake up in the market shows how hard they are working to try and hold on their current customers.

Other lenders such as AIB and KBC have cut their variable rates over the past year. It will be interesting to see if new incentives, like Bank Of Ireland’s cash back offer will shake up the market further in the coming months.

Don’t get caught out! Do your research into your mortgage lender. Spend some time going over the facts and figures that your mortgage lender gives you to make sure you’re not caught out. Need some advice? Don’t forget we’re here to help you get the best possible deal for one of the biggest investments of your life!

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