A new website has been set up by lenders for customers who want to learn more about mortgage switching following fresh research that shows most people are not informed about the benefits.
A report from the Banking and Payments Federation Ireland (BPFI), the representative group for banks and lenders, shows just 28 per cent of mortgage customers have considered switching in the past year.
It further shows only about one in three have looked for information on mortgage rates available in the past six months, while 27 per cent have researched mortgage products available in the market.
The findings further show that many customers are not aware of information which can be important when comparing rates, after 28 per cent of mortgage customers said they don’t know the current loan-to-value ratio on their mortgage.
The BPFI is to roll out a major nationwide information and awareness campaign to encourage mortgage customers to look at their switching options. It will outline what to consider while shopping around, as well as the steps involved in getting “switcher ready”.
Central to the campaign, which will be supported by a national radio, digital and social media advertising campaign, is the launch of a new website InYourInterest.ie, which provides a range of information for customers.
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Lenders have also introduced a new standardised salary certificate for mortgage applicants, meaning that anyone applying for a mortgage will only need one certificate completed by their employer, helping to streamline the application process for customers.
BPFI chief executive Brian Hayes said it is “really important” for consumers to inform themselves of what options are open to them.
“As we move into what looks likely to be a changing interest rate environment, we are launching this campaign to raise awareness about the choices available for mortgage customers and to make it easier to find information about the switching process,” he said.
“About one in five mortgage customers are on a variable rate mortgage and a further 11 per cent are due to come off a fixed rate within the next year, so it is really important for consumers to inform themselves of what options are open to them.”
Mr Hayes added that analysis by the Central Bank shows mortgage customers who switched between 2019 and 2022 saved an average of €2,000 per year.
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