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What are the benefits of switching your mortgage? 

Helping you get your foot on the property ladder | 5 minute read

Switching your mortgage - also called remortgaging - means moving your home loan to a new lender or product. In Ireland’s changing interest-rate environment, switching can offer meaningful savings and better terms, but it’s important to weigh the costs and effort involved. 

Key takeaways

1. Switching could reduce your interest rate, monthly repayments and total interest paid over the life of the loan.
2. You may be able to access additional funds for renovations, debt consolidation or other goals - subject to affordability.
3. It’s essential to factor in legal fees, valuations and any early-repayment charges from your current lender. 


Why getting mortgage ready matters 

Being mortgage ready helps first-time buyers understand what they can realistically borrow, avoid delays or rejection, and act with confidence in a competitive Irish housing market.


3.6%

Average Irish mortgage rate recently - the lowest since early 2023 - with big differences between lenders, making shopping around worthwhile.

Source: Central Bank of Ireland


€2,000 

Average annual saving for mortgage customers who switched between 2019 and 2022.

Source: Central Bank of Ireland

Why consider switching your mortgage?

1. Lower interest rates and repayments

One of the biggest reasons to switch is to secure a lower rate:

  • Even a small rate reduction could add up to thousands of euros saved over the term of your mortgage.
  • On a typical Irish home loan, the difference between the cheapest and most expensive lenders can be worth around €165 per month3.

If your current rate hasn’t been reviewed in years, or your initial fixed rate has ended, it’s worth checking if better deals are available.

2. Better mortgage terms and flexibility

Switching can also allow you to:

  • Move to a shorter term to pay off your mortgage sooner
  • Access more flexible overpayment options
  • Lock into a fixed rate for budgeting certainty or move to a variable rate if you prefer flexibility

3. Access to additional funds

If your home has risen in value and you’ve built up equity, switching can sometimes allow you to release funds for:

  • Home improvements or energy upgrades
  • Debt consolidation (e.g. paying off higher-interest personal loans)
  • Other large expenses, subject to affordability and lender criteria

The growing role of switchers in Ireland

Recent data shows strong growth in switching activity:

  • In 2024, re-mortgage/switching volumes and values rose by over 36% and 45% year-on-year4.
  • In 2025, switcher approvals continued to climb, with volume up 37.6% and value up 58.8% in the first ten months compared with 20245.

This suggests more homeowners are reviewing their rates and not simply staying with their original lender for the full term.

Potential drawbacks and costs

Before you decide to switch, consider:

Upfront and transaction costs

  • Legal fees - you’ll need a solicitor to handle the new mortgage.
  • Valuation fees - the new lender will arrange an up-to-date valuation.
  • Broker or advisory fees - depending on who you use.

Early-repayment charges

If you’re currently on a fixed rate, your lender may charge a break fee:

  • Ask your existing lender for a written breakdown of any early-repayment charges.
  • A broker can help you weigh any break fee against the projected savings from a lower rate.

Fresh affordability checks

Switching is treated like a new application:

  • Your new lender will review your income, outgoings, credit history and Central Credit Register (CCR) record.
  • If your circumstances have changed (e.g. income reduced, new loans), it may affect which deals you qualify for.

Is switching right for you?

Switching is more likely to make sense if:

  • Your current rate is significantly above the best rates available
  • You have a reasonable remaining term (so there’s time to recoup costs)
  • You’re comfortable with the process and paperwork

A mortgage broker can model the costs vs savings so you can see:

  • The payback period (how long it takes savings to cover switching costs)
  • The total interest saved over the remaining term
  • The impact on your monthly cash flow

In a competitive Irish mortgage market, staying on an outdated rate can be costly. A structured review every few years - especially when fixed terms end - helps you decide whether switching could free up cash or shorten your term.

Sorcha Timoney QFA
Senior Mortgage Advisor

How NFP can help

NFP’s mortgage team can help you assess how much you can borrow, compare lenders and rates across the Irish market, and explore schemes such as Help to Buy and the First Home Scheme. We also package your application so lenders can make a quick, confident decision. Whether you’re just starting to save or ready to bid on a home, we can guide you through each step and help you find mortgage options tailored to your situation.


General disclaimer

This document is for general guidance only and does not constitute financial advice.

Subject to lender criteria and regulatory exceptions.

NFP Ireland Consultants Ltd t/a NFP Ireland, NFP is authorised and regulated by the Central Bank of Ireland. Registered office: Second Floor, Block 4, Blackrock Business Park, Co. Dublin and its directors are Colm Power, Louise Gallagher, Duncan Jarrett (British). Registered in Ireland No: 415534

Disclaimer


NFP contributors

Sorcha Timoney QFA
Senior Mortgage Advisor



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