20 Jun, 2020

Does it cost to Switch my Mortgage?

The good news is that at doddl we do not charge any fees,

no administration fees,

no application fees,

no hidden fees…

How much does it cost to switch my mortgage?

The good news is that at doddl we do not charge any fees, no administration fees, no application fees, no hidden fees…

Not convinced about the free service part?

It’s actually very simple. We do not charge a fee to our customers because as a broker we get paid a commission on each completed mortgage by the lender our customer takes their mortgage with. The commission rate is the same for all lenders so this ensures we are impartial with no product or producer bias. Commission is paid to a broker as we are your point of contact throughout the mortgage process from enquiry to mortgage draw down. The banks use the broker network as a distribution channel just as they would do other channels such as their direct team or branch network to procure mortgage business. Mortgage commission allows us to continue offering you, our customer, a free service.

Also good news is that all lenders currently have Switcher packages which start at minimum lowest switcher package which is €1,500 towards legal fees plus free valuation. Cashback is available for switching customers of up to 3% of the mortgage back in cash with some institutions. As such in almost all cases with valuation fees €150 and legal fees on average €1,200 there is absolutely NO COST to you to switch lender. When you consider the savings this should makes the decision to switch a doddl.

The two professional service requirements to switch which, again as above, should be covered by the switcher packages currently on offer by the lenders are –

  • Valuation fee – Your lender will need to value your property so that they can establish your loan to value i.e. the mortgage amount divided by the value of your property. This impacts on how much they can lend and the rate they offer you.
  • Legal fees – You will have to pay a legal fee when switching, but the good news is that all lenders offer a switcher package which should cover your legal costs so as long as there are no extenuating circumstances – you will not have to pay anything.

Some important items you may want to note before considering switching your mortgage

If currently on a fixed rate you may have a break penalty if you break out of the fixed period early. Please check with your current mortgage lender if you would have an early break penalty or discuss with our mortgage experts.

If you are on a tracker mortgage it is most likely not going to be advantageous to you to switch your mortgage. As such our general rule is that tracker mortgage customers should not switch to another lender.

If you are in arrears you will not be able to switch your mortgage

If you are in negative equity you will not be able to switch your mortgage

Our mortgage advisors are mortgage experts and their job is to understand all mortgage options available to you. As part of our process in getting to know you and your requirements we will be in a position to advise on the most suitable mortgage option for your personal circumstance.

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