Less than a third of mortgage customers have considered switching in the past year, according to new data from the Banking and Payments Federation Ireland (BPFI)
The figures show that only around one in three have looked for information on mortgage rates available over the past six months. Meanwhile, just 27% have researched mortgage products available.
The findings suggest that many homeowners are not aware of information which can be important when comparing rates.
28% of mortgage customers said they do not know the current loan-to-value (LTV) ratio on their mortgage and a further 25% said they do not know their home’s BER - Building Energy Rating.
The research comes after BPFI launched a nationwide information and awareness campaign aiming to encourage mortgage customers to look at their switching options, and outlines what to consider while shopping around as well as the steps involved in getting 'switcher ready.’
A new website has been launched, InYourInterest.ie, which provides information for customers who want to learn more about mortgage switching.
BPFI mortgage lending members have also introduced a new standardised salary certificate for mortgage applicants.
This means that anyone applying for a mortgage will only need one certificate completed by their employer.
"There are a variety of reasons why more people may not have considered mortgage switching, with the main reason being uncertainty about the steps involved, according to a recent ESRI report, as well as uncertainty about the costs and benefits and the fear of making a mistake," said Brian Hayes, the chief executive of BPFI.
"Through our new website, InYourInterest.ie, we hope to help mortgage customers get started on the process more easily, by answering common questions about how the switching process works so they can start shopping around and see if there is a better product or rate available to them," he added.
Mr Hayes pointed out that while switching mortgages can take time, it can result in significant savings for customers.
"In fact, analysis by the Central Bank of Ireland shows that mortgage customers who switched between 2019 and 2022 saved an average of €2,000 per year," he said.
"Moreover, some customers may not be aware that since they first took out their mortgage, factors such as a decrease in the loan-to-value (LTV) ratio of their property or an improved Building Energy Rating (BER) could also impact the savings that can be made through switching," he added.
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