Mortgage holders urged to consider their options
Mortgage holders were urged to examine their payments today as it emerged people are overpaying by around €119m a year.
The EBS Building Society urged mortgage holders to review their current mortgage payments to ensure they have the best deal possible.
Dara Deering, head of EBS Mortgages, said mortgage holders in Ireland are paying around €119m per annum more than they should.
“This situation has arisen where home owners have signed up with a provider who has not passed on the benefits of new and improved rates and products to their existing members or where people have simply signed up for an APR that is not the most competitive in the market,” she said.
The society urged mortgage holders to switch providers if they believe they could pay less with another provider.
Ms Deering said: “We are encouraging mortgage holders to check their monthly repayments and to then commit just an hour of their time to call other mortgage providers to get alternative quotes.
“The chances are that there is a better deal out there for them.”
Figures from the society show on an average loan size of €200,000 and a 20-year loan term, home-owners changing from a Standard Variable Rate of 3.75% down to one of 3.5% can make monthly savings of €25.86 and annual savings of €310.32.
“Consumers in Ireland are becoming more conscious of the savings they can make on their personal finance products and I expect mortgage switching to become more prevalent in 2006, when we estimate that there could be up to €3.7bn switched in the market, a 19% increase over 2005,” she said.
