What is a remortgage?Can I remortgage if I have a shared ownership mortgage?Can I apply for a remortgage if my current mortgage is with the local authority?What interest rate options are available to me?How much can I borrow?How quickly will the remortgage process take and when will I receive my cheque?What do you mean by ‘Switch and Save’?How can I apply for a mortgage online?What types of mortgages can I choose from? Can I remortgage if I am behind in my repayments on my current mortgage?What is a Cashback Remortgage?What is a remortgage?
A remortgage is a way of releasing equity from your existing home, in order to consolidate loans, to raise money for lots of different reasons (home improvements, buying overseas property, helping the kids with a deposit for their first home), or simply to swap lenders to get a better (and cheaper mortgage).
Back to TopCan I remortgage if I have a shared ownership mortgage?
Yes. By the nature of the shared ownership scheme, you will have to remortgage at some stage, or you will never fully own your home.
Back to TopCan I apply for a remortgage if my current mortgage is with the local authority?
Yes. Usually it is very beneficial to swap your mortgage away from the local authority, because the rates they charge are usually much higher than what a we can arrange on your behalf with one of the lending institutions.
Back to TopWhat interest rate options are available to me?
What is a Variable interest rate
With variable interest rate loans, the amount of your repayment will increase and decrease depending on changes in the base interest rates set by the European Central Bank. In other words if European rates go down and this decrease is passed on by the lender, you will benefit through lower monthly repayments. If on the other hand rates go up, and again this is passed on by the lender, your monthly repayment will also increase.
What is a Fixed interest rate
With fixed rate loans your mortgage repayments remains constant for a set period of time. This can vary from 1 year to 10 years.
Fixed rates offer greater security to borrowers, certainly in the early stages of a mortgage. However there is a caveat. If you have a fixed rate loan, and you decide to pay your loan back early or change to a different interest rate offer, you will have to pay an “early redemption fee” for terminating your fixed rate agreement. This redemption fee can be substantial.
Rates based on Loan to value Ratio (LTV)
Loan to value ratio is essentially the amount you borrow against the actual value of the property. Whilst most lenders will allow you borrow up to 92% of the property value, others will reward you with a lower rate if you borrow less.
What is a Split Rate
A split rate is where a portion of your mortgage is on a fixed rate and the other portion is on a variable rate.
Back to TopHow much can I borrow?
This will be dependent on your current income including any overtime, bonuses or commission that is paid to you. Each lender calculates the sum differently.
Why not look at our calculator how much you can borrow to give you an initial estimate.
Back to TopHow quickly will the remortgage process take and when will I receive my cheque?
We deal with a range of lenders, and depending on the lender, you could get your cheque in as little as 3 weeks, from sending in your signed application form. Other lenders can take a little longer
Back to TopWhat do you mean by ‘Switch and Save’?
It means switching your current mortgage from your existing lender to a new lender that can offer you better terms than you are getting at present, potentially saving you thousands of euro over the life of your mortgage. Click here to find out more details about our Switch & Save offer!
Back to TopHow can I apply for a mortgage online?
Please refer to the 'Make an Enquiry' section on this website or you can simply download the Mortgage Application Form and send it to us.
Back to TopWhat types of mortgages can I choose from?
There are a wide range of different kinds of mortgage you can opt for:
Repayment, Tracker,
Endowment,
Pension, Interest only, are just some of the wide range of mortgages available in Ireland.
Repayment Mortgage
This is the most popular mortgage and is also known as an annuity mortgage. Your monthly repayments are made up of both interest and principle i.e. the interest due on the borrowings plus a portion of the actual amount borrowed i.e. the principle. In the early years of a mortgage, borrowers tend to pay back more interest than principle. However this trend is reversed in the second half of the mortgage life, where more principle than interest is paid off.
Tracker mortgage
A tracker mortgage is a repayment mortgage with an added commitment from the lending institution that the interest rate will not move more than a certain percentage above the European bank base rate. Generally, this product is highly recommended as it is transparent and good value for money.
Unfortunately, at this time, tracker mortgages are no longer offered by lenders.
Endowment Mortgage
This is an interest-only mortgage. The principle (the original sum borrowed) ,is repaid by taking out a policy with an insurance company. Each month, you will make two payments - one to cover the interest on the loan, the second to cover the premiums on the insurance policy.
Endowment mortgages while still sold, do attract their sceptics. With volatility in equity markets in the past, there have been a number of cases both in Ireland and the UK where the value of the policy on maturity was less than the original principle borrowed. In this case the customer has to make up the short fall - through their own savings or through borrowing.
Pension mortgage
This is an interest-only mortgage, with the principal being paid off through a pension plan. A pension mortgage only an option for someone who is either self employed or in non-pensionable employment.
A personal pension plan is designed to pay a tax-free lump sum on retirement in addition to a monthly pension income. It is the lump sum that is used to repay the mortgage debt. The advantage of this type of repayment method is that the pension contributions attract tax relief at the saver's highest rate of tax.
Back to TopCan I remortgage if I am behind in my repayments on my current mortgage?
Most Banks and Building Societies will not consider offering you a remortgage if you are in arrears, or if you have a less than perfect credit history. However, even if you have arrears, judgements, or a bad credit history, we may be able to help you.
The mortgage is more expensive, but it may give you the opportunity to make a fresh start and repair your credit.
Back to TopWhat is a Cashback Remortgage?
When you remortgage your home, you can also release equity from your property to spend on anything you wish. Most lenders will allow you to release up to €60,000. For cash back above this amount they may require estimates or confirmation of what you may spend the money on.
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