Given a €270,000 mortgage over 25 years, you could save €1,152 per year by switching to the right loan. For example, AIB recently did an interest rate reduction from 2.5% to 2.45%. There are some customers at AIB who have rates as high as 3.15%. By switching to the 2.45% loan, you could save €96 a month (or €1,152 a year).
AIB is one of many banks that have gotten into a price war per-say. Ulster Bank and KBC both have reduced their rates. Bank of Ireland and Permanent TSB cannot rely on cash-back deals and other inducements to keep their customers from switching. This puts immense strain on both banks to follow suit.
Another source said that if customers switched mortgage providers they could save €275 per month (€3,300 per year). That is €99,000 over a 30 year mortgage.
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