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Thinking of moving your mortgage? 'Make sure it benefits you more than the bank'

However, it could work in your favour.

Image: house via Shutterstock

MORTGAGE HOLDERS LOOKING to get a better deal are being advised to study the fine print in detail due to the ‘significant costs’ involved.

As more people look to gain more favourable terms on their repayments, some banks are beginning to reduce rates.

Yesterday, Permanent TSB announced it would offer a sum of €1,000 off legal fees to some of those switching.

The Irish Brokers Association said that while this may be ‘very lucrative’ for some, it needs ‘careful consideration’.

“They may well say that it is a good idea to switch but you need to be absolutely sure that you too are benefiting in the long term – not just the bank,” chief executive Ciaran Phelan.

He warned that banks are hoping for the ‘best customers, namely high equity mortgage holders with an excellent repayment track record’ to take up on the offer, and said there’s a chance for other borrowers no actual savings will be made from the costly process.

At the end of the day the banks are there to make money – so they give nothing for nothing.

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In a statement yesterday, head of mortgages at PTSB Richard Kelly said :

Some banks are trying to distract borrowers with incentives which take attention away from their underlying rates.

“We’ve some of the most competitive rates on the market and this move will ensure that customers will not be distracted by headline incentive offers from other banks.”

Read: IBRC won’t say how much former Anglo directors still owe them >

More: Irish people repaid €335m more than we borrowed last month >

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Nicky Ryan

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