Switching Your Mortgage – A Complete Guide for Irish Homeowners
Switching your mortgage can be one of the most financially beneficial decisions you make as a homeowner in Ireland. Whether you’re looking to lower your monthly repayments, shorten your loan term, or access equity in your home, mortgage switching can unlock significant value.
At Ocean.ie, we specialise in helping Irish homeowners make smart, informed choices about their mortgage. In this guide, we explain what switching your mortgage involves, when it makes sense, how the process works, and what you should consider before making the move.
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Terry Palmer has brokered over €250m worth of mortgage loans over the last two decades.
It is important to get expert advice if considering remortgaging – so having the best broker on your side is critical.
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What Is Mortgage Switching?
Mortgage switching means moving your mortgage from one lender to another, usually to get a better deal. It involves paying off your existing mortgage with funds from a new mortgage loan — ideally at a lower interest rate or with more favourable terms.
It’s important to note that switching is not the same as remortgaging with your current lender. Switching involves changing provider entirely.
Why Consider Switching?
1. Lower Interest Rates
If you’re on a high variable rate or an older fixed rate, there may be significantly cheaper options available today. Even a 1% drop in your mortgage rate can save thousands over the life of your loan.
2. Better Mortgage Terms
Switching can allow you to:
- Fix your rate for peace of mind
- Change from interest-only to full repayment
- Reduce your term and pay off your mortgage faster
3. Cashback Offers
Some lenders offer generous cashback incentives (e.g. 2% of your mortgage amount) for switchers. These can offset legal and valuation costs or be used however you like.
4. Debt Consolidation or Equity Release
Switching can sometimes allow you to consolidate loans into your mortgage or release equity for home improvements, education, or other expenses.
When Does Switching Make Sense?
- Your fixed rate is ending soon or you’re on a high variable rate
- Your loan-to-value (LTV) has improved — for example, if your property value has risen or you’ve paid off a large chunk of your loan
- You plan to stay in the property long-term — typically 3+ years
- You’re in good financial health — stable income, good credit record, etc.
Even if you’re already on a decent rate, it’s worth reviewing your mortgage every few years. Lenders regularly introduce new products and pricing.
What Are the Costs of Switching?
While switching can save you money, there are some costs to be aware of:
- Legal fees* – usually €1,000–€1,500 (many lenders offer contributions or cashback to offset this)
- Valuation fee – approximately €150–€250
- Break fees – if you’re still locked into a fixed rate, ask your current lender about any penalties
- Broker or advisor fees – at Ocean.ie, we are fully transparent about costs and many of our switching services are fee-free
Ocean.ie partners with Conveyancing Solicitors to make the switching process as seamless as possible.
>> Read more about the Conveyancing Process here
How the Process Works
- Initial Consultation – We assess your current mortgage, financial position, and goals
- Market Review – We compare available mortgage offers across all major Irish lenders
- Approval in Principle – Once a suitable offer is identified, we apply for approval
- Valuation and Legal Work – A valuation is arranged, and a solicitor handles the legal switching process
- Drawdown and Closure – The new lender pays off your existing mortgage, and your new loan begins
This process typically takes 4 to 8 weeks, depending on legal and valuation timelines.
What Documents Are Required?
- Photo ID and proof of address
- Recent payslips and employment details
- Bank statements (typically 6 months)
- Existing mortgage statements
- Proof of property insurance
We will guide you through this and help ensure everything is in order.
Can You Switch if You’re Self-Employed or Have Poor Credit?
Yes — it’s possible, though more documentation and lender scrutiny will apply. We help self-employed clients every day and can explore all available lenders, including those more flexible on credit history or employment structure.
How Much Could You Save?
Here’s a simple example:
- Remaining Mortgage: €250,000
- Old Rate: 4.5%
- New Rate: 3.0%
- Remaining Term: 20 years
You could save over €26,000 in interest over the remaining term.
That’s not including potential cashback or shorter term options.
Is It Worth It?
Switching your mortgage isn’t right for everyone — but for many Irish homeowners, it offers a valuable opportunity to reduce costs, improve flexibility, or unlock equity. If you’re unsure whether switching is right for you, our advisors can provide a no-obligation review.
Ocean.ie is a regulated Irish mortgage and pension broker. We work for you — not the lenders — and we have access to the entire market. Our goal is to find the best solution for your needs and make the process simple and stress-free.
