Switching from a subprime mortgage

If you have a subprime mortgage you are probably paying a higher rate of interest than you would with most other lenders. If your mortgage is 80% or less than the current valuation of your home, you may be able to switch to a lender offering a lower rate of interest. However, the reasons you previously could not get a mortgage with a lower rate need to have changed.

Reasons why you may be able to switch to a mortgage with a lower rate of interest:

  • You had a poor credit record in the past, but you have since kept up with your mortgage and any other loan repayments
  • You did not have any credit history in the past, as you had never taken out a loan in Ireland before, but you now have a track record of paying your mortgage
  • Your circumstances have changed. For example, you can now prove your income in a way that you could not do in the past

Costs and benefits

If you can switch your mortgage, there will be some costs including legal fees, but you will save money in the long term by having a mortgage with a lower interest rate. You can compare the cost of your current mortgage with other offers by using our mortgage calculators.

If you cannot switch now continue to build a good credit record

Continue to make your regular mortgage repayments, try and clear any other debt and if you can, save regular amounts, however little.

When your credit history improves in the future, look at other mortgage options available to you with lower rates of interest.

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