Switching mortgages

If you are paying a mortgage, how much you pay back every month depends on:

  • Your outstanding balance: This is the amount of money you have left to pay
  • Your mortgage term: This is the length of time until you have fully paid off your mortgage
  • The interest rate: This is set by your lender or is based on the European Central Bank (ECB) rate if you are on a tracker mortgage.

You can switch your mortgage to another lender or to another mortgage product provided by the same lender. This could save you money because:

  • The new mortgage may be at a lower interest rate
  • The new lender has a special offer, like a ‘cashback’ offer

If you are currently on a variable rate, you can switch your mortgage at any time. If you are on a fixed-rate rate, you may have to pay a fee for ending the fixed-rate early. If you switch to a different lender, you will have to complete a full mortgage application and pay legal fees similar to when you first bought your house.

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