October 01, 2021 | Mortgages,

How Switching Your Mortgage Can Save You Money

You may already be aware that switching your Home and Car insurance each year can save you money. But did you know that a mortgage switch could also save you €1000s?


Chances are, your mortgage is your biggest household expense and will be for years to come — so this is one bill that you really don’t want to be overpaying. It’s a good idea to assess your mortgage every few years and explore other options available. Comparing providers can make sure you’re getting the best deal possible. 


At Campion Insurance, our mortgage experts have the experience and know-how to make switching straightforward and effective. 


You may be wondering:

  • How much could I save?
  • Is it an option for everyone?
  • What are the steps involved?


Let’s take a look…

How much could I save by switching my mortgage?

A mortgage switch could save you more than you might think. Many customers who switch providers save thousands of euros — tens of thousands in some cases! We have created a table below which will give you an idea of what you could potentially save if you were to switch. The calculations are based on a customer who has 20% equity in their home, and 20 years remaining on their mortgage. It is only a guide, call us today on 0818 297 600 to get more detail.

Property Value €300,000 €350,000 €400,000 €450,000
Current Morgage Balance €240,000 €280,000 €320,000 €360,000
Current Interest Rate 4.5% 4.5% 4.5% 4.5%
Current Monthly Repayment €1,518 €1,771 €2,024 €2,278
New Interest Rate 2.25% 2.25% 2.25% 2.25%
New Monthly Repayment €1,243 €1,450 €1,657 €1,864
Monthly Saving €275 €321 €367 €414
Annual Saving €3,300 €3,852 €4,404 €4,968
Lifetime Saving €66,000 €77,040 €88,080 €99,360

There are some upfront costs associated with switching mortgage provider. However, in some cases, banks will provide customers with cashback or a contribution towards the legal fees that changing provider entails. 

Is switching mortgages an option for you?

Each bank has its own set of criteria for accepting mortgage switchers so it’s worth checking with yours. If your financial circumstances have significantly deteriorated since you qualified for your initial mortgage, you may find switching more challenging.

If you apply to change mortgage and aren’t accepted, there won’t be any negative consequences for you. It’s worth giving it a go. 

Before exploring different mortgage options, it’s essential to consider the following factors:

  • Your credit rating. In order to get a new mortgage provider, you must still have a good credit rating. The lender you attempt to switch to will carry out a credit check. For more information on your credit rating visit the Credit Referencing Agency.
  • Fixed-rate mortgage with your current lender. Your lender may apply a penalty fee for switching out of a fixed-rate mortgage early. Sometimes the penalty for breaking a fixed-rate contract may be less than the savings you’d make by switching mortgage lender. Always weigh up which gives you the most value
  • Outstanding Mortgage Balance. The minimum amount accepted by Irish lenders for someone switching is around €30,000 to €40,000. 
  • How much equity is in your home. You may have an issue switching if you are in negative equity or have less than 20% equity in your home. With the increase in property values in Ireland over the last few years, most homeowners are in a very positive equity position which helps. However, each lender will assess your switch on a case-by-case basis.
  • The term remaining on your mortgage. Some lenders may have minimum term requirements, meaning that you may not be able to switch if you only have a few years remaining on your mortgage. 

Are there penalties for switching mortgage providers?

If you’re on a fixed rate with a breakage clause and are looking to change lender before your contract is due to end, you may have to pay a penalty fee. 

It’s also worth noting, you cannot be penalised for looking to switch mortgage provider — even if you’ve had a ‘cashback mortgage’. So, if you received a cashback sum as part of your original mortgage you won’t have to return any of this sum when you switch. 

How do I switch my mortgage?

With support from mortgage experts, like our team at Campion, changing your lender can be quick, easy, and worthwhile. 

  • Your current situation

The first step in changing mortgage provider is to find out the balance due on your existing mortgage, as well as the term remaining and your current interest rate. Your new lender will need these details.

You should be able to find this information on a recent mortgage statement or by contacting your lender.  

You will also need to know how much your current home is worth. You can use a rough estimate by seeing what similar houses in your area recently sold for.  

  • Compare

Once you have the above information, it’s time to compare providers. At Campion, we have a team of qualified financial advisors who can compare mortgage rates for you and show you whether it makes financial sense.  


We can also compare what offers and cashback incentives are available from our mortgage lenders so you can get the best deal.  From there, we can give you a clear insight into what your new monthly repayments would be.


You can contact one of our experienced mortgage advisors on 0818297600 or email mortgages@campion.com if you would prefer a call-back. 

  • The documents

Once you’ve chosen your new lender, they’ll issue you with a mortgage switching pack for completion. Remember that you’ll need to provide the following documentation:


  • Proof of identity: e.g. a copy of your passport.
  • Proof of your income: including your latest P60 and at least three recent payslips.
  • Employment status: your new lender will want evidence to show what type of employment contract you are on (for example, permanent, fixed-term, full-time, part-time, etc). 
  • Proof of address: e.g. a recent household bill in your name. To be accepted most bills will need to be dated within the past three months.
  • Evidence of how you manage your money: you’ll be asked to provide a copy of your current account statement for the previous six months. If you have any loans or credit cards, you’ll also need to provide statements for these.
  • Evidence of any savings you have.


Under new Central Bank requirements the bank you’re looking to switch to must give you all the information you need to switch and give you a decision within 10 business days of receiving your completed mortgage application.

  • House valuation

You’ll need to get an up-to-date professional valuation of your home. This is so the mortgage lender can understand how much equity you have in the property.

Valuation fees are usually around €150 – €200. The lender you’re looking to switch to will give you the name of an approved valuer to use. 

  • Legal Requirement

You’ll need a solicitor to take care of conveyancing and legal documents. 


In general, the legal fees for switching mortgages are less than the fees for first-time buyers. 

  • Mortgage protection

As long as the amount you borrow, and the term of your mortgage remain the same, you won’t need to take out a new mortgage protection policy when switching lenders. 


You just need to contact your current insurance provider and get them to reassign your existing policy to your new lender. 


However, this might be a good time to look at reviewing your mortgage protection policy too. At Campion, we can help you get the best protection at the most affordable price. Feel free to get in touch with our knowledgeable team today.  

  • Direct debit

When your mortgage is approved, you will need to fill in a new direct debit form so your repayments can be collected from your bank account. You will also need to cancel the direct debit with your previous lender.

Finding the best mortgage

If you’re ready to switch mortgage provider, why not make the process as smooth as possible by contacting our team at Campion today? Our financial advisors can guide you every step of the way and compare a range of mortgages to help you save thousands.

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