A National Guide for Second-Time Buyers and Movers
If you’re planning to move home — whether upsizing, downsizing, or relocating — you may be considering switching mortgage lenders. While switching can offer better rates and long-term savings, it’s important to understand the associated fees, timelines, and how to maximise the benefits. This guide is designed for second-time buyers in Ireland who are selling an existing home and seeking a new mortgage.
Why Switch Lenders When Moving?
Switching lenders during a move can help you:
- Secure a better interest rate.
- Reduce monthly repayments
- Shorten your mortgage term.
- Access cashback incentives
- Release equity for renovations or other needs.
Mortgage brokers like Sherry FitzGerald Mortgages work independently of banks and can compare multiple lenders to find the best deal for your situation.
Key Fees to Expect
1. Valuation Fee
Your new lender will require a professional valuation of the property you’re purchasing.
- Typical cost: €150–€250.
- Must be carried out by an approved valuer.
2. Legal Fees
You’ll need a solicitor to manage the legal aspects of switching and purchasing.
- Typical cost: €1,000–€2,000.
- Some lenders offer cashback to offset these costs.
3. Redemption Fee
If you’re exiting a fixed-rate mortgage early, you may face a penalty.
- Check with your current lender before switching.
- Weigh the fee against potential savings from a lower rate.
4. Mortgage Protection Insurance
You may need to switch or update your insurance policy.
- Cost: Varies based on age, health, and coverage
- Group policies may not be transferable.
Timelines: What to Expect
Switching lenders while moving typically takes 6–8 weeks, depending on:
- Document preparation.
- Property valuation.
- Solicitor availability.
- Lender processing times.
Steps in the process:
- Review your current mortgage: Check balance, rate, and any exit fees.
- Compare lenders: Use a broker or our mortgage switching calculator.
- Apply for approval in principle with your chosen lender.
- Get your property valued.
- Engage a solicitor to manage the legal transfer.
- Set up a new direct debit and cancel the old one.
Potential Savings
Switching lenders can lead to significant savings:
- Lower interest rates reduce monthly repayments.
- Shorter terms mean lower overall interest payments.
- Cashback offers can offset upfront costs.
To estimate your savings, use our mortgage calculator to compare your new repayments with your current mortgage. Subtract any applicable fees to determine your net savings over the full mortgage term.
Things to Consider Before Switching
- Loan-to-Value (LTV): You’ll need an up-to-date valuation to determine your LTV ratio.
- Repayment History: Lenders will assess your payment history and creditworthiness.
- Negative Equity: If your current home is worth less than your mortgage, switching may not be possible.
- Mortgage Term: Some lenders have restrictions on minimum or maximum terms.
Switching Incentives
Many lenders offer incentives to attract switchers:
- Cashback: Often €2,000–€5,000 (varies by lender).
- Reduced rates for new customers.
- Fee waivers for legal or valuation costs.
Always review all terms and conditions and compare the long-term value of the incentives to the interest rate offered.
Final Thoughts
Switching lenders when moving home can be a smart financial decision, especially for second-time buyers looking to optimise their mortgage. With the right advice and preparation, you can reduce costs, improve flexibility, and make your next move more affordable.
