Rising interest rates and the closure of two retail banks have meant that the number of homeowners switching mortgages has doubled.
The European Central Bank raised interest rates by 0.5 percentage points last month and a similar increase is expected next month.
This has resulted in a 96 percent increase in the number of mortgageholders who have been approved to switch providers and those who have increased their home loans this month from a year ago.
A total of 1,741 homeowners were approved to switch in the past month, the Banking and Payments Federation said.
The value of these transfer permits was €441 million.
Economists expect the European Central Bank’s central refinancing rate, which drives tracker rates and floating rates, to come in at 1.5 percent by the end of the year.
Savvy homeowners with variable rates and those moving away from fixed rates are choosing to switch to cheaper lenders.
Some of the people whose mortgages are being sold by Ulster Bank and KBC Bank Ireland who are exiting this market are also choosing to switch to a provider of their choice rather than the buying bank.
Brian Hayes, chief executive officer of the Banking and Payments Federation, said: “Our latest mortgage data shows continued growth in activity, driven primarily by non-purchase mortgages – primarily those who are taking out a new mortgage or switching.
“Non-purchase mortgage activity, most of which are switching, has picked up sharply since May.”
Mr Hayes said this reflects both the competition in the market and the fact that customers continue to seek better mortgage rates.
https://www.independent.ie/business/personal-finance/property-mortgages/how-much-is-your-house-worth/number-of-people-switching-mortgages-doubles-41937966.html Number of mortgage switches doubles