Mortgage switching service Doddl.ie is warning that mortgage top ups are at a 16 year high.<\/p>\n
Top ups for home improvements, taken automatically by home owners from their own lender, could cost them thousands, according to the service’s quarterly Mortgage Switching Index, which it conducts in conjuction with the Irish Independent.<\/p>\n
It shows that an increasing number of households are choosing to stay put rather than move home, because of the shortage of suitable properties available.<\/p>\n
That’s led to a rise in borrowing, including top-up mortgages, as people look to make the most of what they have.<\/p>\n
The figures show that mortgage switching has increased almost 25% in value year-on-year, reaching its highest level since records began in 2003.<\/p>\n
While the average switcher mortgage has risen to \u20ac309,666 in Q2.<\/p>\n
Doddl.ie is advising people to shop around the entire market rather than simply going to their existing bank for a top up loan.<\/p>\n
It points out that the work involved in getting a mortgage top up, even from your existing bank, is on a par with what you have to do for an entire new mortgage.<\/p>\n
Applicants still need to gather all the paperwork, the salary certs, the valuations, and any other documentation requested.<\/p>\n
The switching service says there’s a potential gap of more than three percentage points between the highest and lowest rates on the market, so home ownerslooking to borrow more could be losing money by not switching.<\/p>\n
On a mortgage of \u20ac358,212, the difference between the highest and lowest rates equates to approximately \u20ac642 a month or \u20ac7,706 a year.<\/p>\n
“Mortgage holders are making a mistake by sticking with their current lender to fund home renovations before researching the market,” cautions Martina Hennessy, CEO of doddl.ie.<\/p>\n
“When someone wants to borrow for an extension, they are often focused on ‘can I get \u20ac80,000?’ rather than \u2018what is the cheapest way to finance this?\u2019” said Ms Hennessy.<\/p>\n
“Many mortgage holders see a top-up as an administrative task rather than an opportunity to review their mortgage terms and potentially save on interest.<\/p>\n
“This can mean overlooking whole of market options and savings that can be made on the full outstanding mortgage. <\/p>\n
“The switching process is one where the mortgage holder is in control, there is no home purchase involved, it is a transaction to move your mortgage from one lender to another to save on interest.”<\/p>\n","protected":false},"excerpt":{"rendered":"Mortgage switching service Doddl.ie is warning that mortgage top ups are at a 16 year high. Top ups…\n","protected":false},"author":2,"featured_media":595901,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,61,60],"class_list":["post-595900","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/595900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=595900"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/595900\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/595901"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=595900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=595900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=595900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}