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Published on: doddl News

Save €5000 in 2021

How the average household can save over €5,000 per annum by doing three things in 2021

The New Year brings many resolutions one of which for many households is cutting back on household outgoings. Spend your time saving money and look at big ticket items which can substantially affect your household finances.

The average household could save over €5,000 in three easy ways. Spend your hard earned money on the things that matter to you.

Mortgage Switching – average saving €4,093 per annum

The average Irish homeowner is needlessly paying up to €4,093 in extra mortgage repayments per year by not switching lenders, according to the Irish Independent doddl mortgage switching index.The spread between the highest and lowest interest rates available on the market has now grown to 2.55%. The Index is based on the average mortgage drawn down for new lending in both the first-time buyer and second-hand mover markets as at Q3 2020, currently €253,759.This large spread means monthly repayment savings of up to 31.9% are possible for mortgage holders – working out at a saving of €135 per month for every €100,000 owed on a 25-year mortgage.Start With Your MortgageThe one change you can make if you are a mortgage holder that has the largest financial impact is switching mortgage and is the one switch that will result in long term substantial savings.Benefit of mortgage switching generally greater than the combined benefit of switching utilities, insurance providers, mobile providers etc

The lowest rate on the market is 1.95% yet there are still over 220,000 households paying standard variable rates of up to 4.5%.

As a rule I would anyone who has purchased since 2008 should be reviewing their mortgage regularly. Higher interest adds no value to your mortgage and is just an additional outgoing, if you can switch and save then do.

The numbers switching their mortgage are increasing but there is still complacency or lack of knowledge around the process. Many assume it is complex and costly, it is neither.

By working with a mortgage platform like doddl you can see if you can save by using out mortgage switching calculator, you can then start the process of switching via our secure customer portal. Our team of mortgage switching specialists will contact you to discuss your requirements and the best options for your current circumstances.

The costs to switch are valuation fee which can be up to switch are valuation fee which can be up to €185 and legal fee which on average is €1,500. Almost all lenders offer switcher packages to cover the cost of switching and these can range from value €1,650 to cashback amounts of up to 2% of your mortgage back in cash at draw down so on a €300,000 mortgage, cashback of up to €6,000.

Mortgage switching is about real and long term savings.

At Doddl we are experiencing an uplift in volume of applications as mortgage holders who are making their mortgage a priority, reviewing their rate and making substantial saving.

With so much change in 2020 and so many now working from home we have also seen a marked increase in the number of mortgage holders looking to release equity to fund home improvements and extensions.

See if you can save by comparing your mortgage on our mortgage switching calculator at doddl.ie

2. TAX REFUNDS – average refund €1,076

Every year many people miss out on claiming their tax entitlements – believing that it will either be too complicated or not worth their while to claim. However this is not the case.

The average tax refund a Taxback.com customer receives is €1,076.

 

There are many reasons why you may be due tax back:

Medical and dental

Most people are aware that they can get a tax refund if they have had medical expenses (like doctor’s bills, prescriptions and physiotherapy etc.) and non-routine dental costs.

Marriage

Many married couples are entitled to tax relief in the year after they get married, yet this relief often goes unclaimed.

Flat rate expenses

Thousands of Irish workers across a plethora of industries are entitled to claim money back each year. The exact amount you can claim depends on your occupation. Expenses include from €153 for electricians and €518 for teachers.

Working from home

Due to COVID-19, thousands of Irish employees are now working remotely. The good news is that you can claim tax relief on the expenses you incur while working from home.

If you have missed out in the past don’t worry tax can be claimed back four years when applying for your refund.

Check out Revenue or Taxback

Gas and Electricity Suppliers - average saving €300 per annum

Commission for Regulation of Utilities estimate that you could save up to €300 a year by switching energy supplier? You can even save money with your existing supplier if you renegotiate when your contract is up.

One Big Switch, Switcher.ie also useful sites to allow you to compare to your existing package to see if you can save.

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