Mortgages in Letterkenny
Switching your mortgage could save you thousands over the lifetime of the mortgage. Can you afford NOT to switch?
The number of people switching mortgage providers in Ireland is exceptionally low, This is despite the fact that there may be tens of thousands of euros to be saved by switching.
The first step in switching your mortgage is to contact your mortgage broker. Enquire how much the interest rate is. And then decide if the interest rate is lower than what you are paying on your mortgage and how you can save money. An example below demonstrates the type of savings you could enjoy.
Switching from a 4.5% rate to a 3.5 % rate on a 20 year mortgage of €300.000 could save you nearly €160.00 per month. Therefore over the life time of the mortgage that can add up to as much as €38,400.00.
The title deeds to your property are currently held by the bank that provided your existing mortgage. Once we have your written authority we will arrange to obtain the title deeds from the bank. When your new bank has formally approved your switch, the bank will send you a formal Letter of Offer setting out the terms and conditions of the loan. The bank will also issue a Loan Pack to us which will contain the mortgage documents.
On receipt of the Loan Pack we will arrange for you to attend our office to sign the necessary authority to allow us to act on your behalf. We will go through the loan offer in detail to confirm that the rates and terms of the loan offer are exactly those which you have agreed with your new bank. Once you are satisfied with the terms and conditions we will arrange for you to sign Loan Offer. The loan offer will also include special conditions in relation to life cover and household insurance.
We will write to the bank to obtain redemption figures i.e. to ascertain the outstanding balance on your existing mortgage. Once all of the necessary documentation is signed we will request the funds from your new bank. We will arrange to discharge this mortgage from the proceeds of your new mortgage.
We will then arrange to register the mortgage with the Property Registration Authority.
Once the mortgage is registered we will forward the title deeds to your new Bank where they will be held until the mortgage is repaid or you switch your mortgage to another Bank.
On receipt of the funds, we will complete the statement of account and the funds will be released to you (if there are funds after the redemption of previous mortgage).
The mortgage broker will require the following documents,
- Photographic ID
- Proof of address
- 6 months Bank statements
- 3 months salary certificates
For Self Employed:
- 3 Years Trading Accounts
- 3 Years Notice of Assessment (Chapter 4 Form 11)
- Letter from Accountant, confirming both personal and business Tax Affairs are up to date
- 6 months Bank statements for the Business Account.
Many banks are now offering cash incentives to cover the cost of legal fees with cash left over for the borrower. An example of the legal fees associated with the switch your mortgage are as follows.
Legal Fee Costs
Professional Fee €900.00 – 1,000.00
Property Registration Authority €175.00
Bank Fee to release Title Deeds (depending on the bank) €65.00
Discharge of Mortgage €40.00
Searches (approximately) €150.00
At Crawford Gallagher Solicitors we endeavour to make the switch as uncomplicated as possible with completion within weeks if all documents are in order.
If you decide to switch your mortgage, contact the office today at 074 916 4906 or alternatively, email firstname.lastname@example.org
This article is general in nature and cannot be regarded as definitive legal advice, as it is commentary only. If you would like legal advice regarding how the law applies to your individual situation, then please do not hesitate to contact the office. Contact us about Conveyancing Letterkenny properties.