To make it easier for you to switch your mortgage, the Central Bank has introduced six new measures that lenders have to follow:
If you have a fixed-rate mortgage, your lender will have to tell you about any cheaper options they have available 60 days before your fixed term is due to end.
If you have a variable-rate mortgage (other than a tracker) your lender will have to tell you at least once a year if you can switch to a cheaper rate with them based on how much equity is in your home i.e., your loan-to-value ratio.
Lenders will have to clearly explain the pros and cons of any mortgage incentives such as cashback offers.
Lenders must give you a comparison of how much your mortgage costs versus other options offered by your lender if you ask for one.
If requested, lenders must give switchers all the information they need to switch, including how long it will take.
And when you’re looking to switch your mortgage, lenders must give you a decision within 10 business days of receiving a completed mortgage application.
So, in a nutshell, these changes should make it a whole lot easier for mortgage holders to be able to spot and understand if, and when, they should switch lenders throughout the course of their loan period. And if you do decide to switch, the process should be a little bit easier.