Mortgage Solicitors & Switching

Mortgage Switching: 

This is the popular term for refinancing. It can refer to a new loan from an entirely different bank or lender. Or it might also refer to a borrower who wants to restructure his loan from a variable rate to a fixed rate from his existing lender.

Variable to fixed:

It can be attractive to change from a variable rate to a fixed rate for perhaps three or even five years. It brings certainty into your budget but should only be done if the rates on offer justify it. Remember if you want to change back to a variable rate before the fixed term is up, you might have to pay a sizeable penalty. There is usually little paperwork for this change although borrowers will be issued a fresh loan offer letter.

 Fixed to variable:

This happens automatically on the expiry of your fixed term. If you want to cancel the fixed term rate before the term expires, you will be liable for a hefty enough fee.

Change of lender:

Borrowers change their lender because they want to borrow an additional sum, or the interest rate and terms offered by a new lender appear very attractive.

The new lender will demand the same information as any lender and in particular will look at your repayment history on your old loan. The new lender will arrange a surveyor’s report on the property to ensure its market value and that the Loan to Value ratio is correct. Usually, most borrowers will not get over 80% to 85% of the value of your existing house.

They will appoint their own solicitors to check title and arrange for completion of the mortgage documents. Alternatively, they might allow your own mortgage solicitor to act for them to ensure all mortgage formalities are completed. He/she will issue a certificate of title to your new lender and lodge the deeds with them in due course.

Your own mortgage solicitors fees will vary one would have to obtain a quote in relation to same. Unfortunately, there also fees due to the land registry or deeds registry for the mortgage application. Allow about €200-€250 for these government charges.

Changing your bank or lender is not quite as simple as changing your energy provider. However, despite the outlay involved, it might be a very good idea, if you can sign up for a better rate and save perhaps thousands of euros over the next few years.

If a person requires legal assistance on a property sale/purchase matter from mortgage solicitors, we can be contacted on  (052) 612 1999 or (01) 546 1121.