6 Easy Steps For Switching Your Mortgage in Ireland

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Maybe you have had the same mortgage for a while but you think it might be time to switch. Chances are switching your mortgage plan could save you a lot of money if you can find another loan provider that is willing to give you a significantly lower interest rate on your monthly outgoing payments. This can be great for you as a homebuyer, as interest rates may have dropped in the time since you originally took out your mortgage loan, but your current plan is still stuck on the original interest rate you got it for at first when interest rates may have been even higher. But how exactly should you go about switching your mortgage. We will list out these 6 easy steps that you should follow to switch your mortgage plan

  1.  Step 1 is to get into  contact with your mortgage broker. Chances are you might have used a mortgage broker when you got out your original mortgage loan with your current lender. If you are thinking of switching for a lower rate you should contact your broker again. Your broker will provide you with the best advice possible and guide you through the overall process of switching your mortgage to make your transition to a new plan as easy as possible.
  2. Step 2 is to get an Approval in Principle. Since you will be technically applying for a new loan, your broker and new potential lender will need to assess your personal finances and history of loan payments in a similar fashion to the financial analysis that likely occurred when you got your original loan. If everything works out you should receive an AIP for an amount that you qualify for
  3. The Third Step is to start filling out a mortgage application once you have received your AIP. In order to do this you will have to provide any relevant documentation necessary for the application to be completed such as personal identification, employment paperwork and income documentation.
  4. After you have submitted your documentation and applied for the loan Step 4 will be to get a valuation for your current home. If the valuation checks out and works with your AIP you should receive a Letter of Offer that you can sign, assuming you are happy with all the details and agreements made upon signing.
  5. Before you complete your mortgage Step 5 should be to set up insurance for your new loan. You may have already had mortgage insurance on your previous mortgage plan, but there is a chance you will have to change your insurance plan to go along with your new mortgage.
  6. The final step, Step 6, will be to complete the new mortgage deal. Once everything is all set and the loan offer conditions have been met the funds for you loan will be used to pay off your old mortgage, and any additional money borrowed should be transferred to you.