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Campaign wants 20,000 to switch mortgages

A massive campaign to get 20,000 variable-rate mortgage holders to switch to another provider is to be launched.

The One Big Switch group aims to do a deal with a bank for lower mortgage rates in return for delivering thousands of switchers to it.

The group has already negotiated deals with electricity providers and health insurers for those who sign up with it. It has a database of some 80,000 registered consumers.

There are around 370,000 people on variable rates in this country, with customers paying some of the highest interest rates in the eurozone.

It is estimated that switching to the best-value mortgage could see a family with a €250,000 home-loan saving around €1,500 a year.

“If 20,000 people are prepared to switch together it will unlock the buying power for a group discount,” Lachlan Harris of the One Big Switch campaign said.

Once the group has thousands of mortgage holders who register for the mortgage campaign, One Big Switch will then negotiate with the banks for an exclusive group discount.

KBC Current Mortgage Offers

KBC  is offering attractive mortgage deals for customers who are looking to buy their first home, subsequent home, or those simply looking to switch for better value.

  • Rates from as low as 3.30% fixed and 3.25% variable when you open a KBC current account.
  • 50% off KBC Home Insurance for 1 year for new residential mortgages that draw down up to 31st December 2015.
  • Clients who wish to switch to KBC before 31st December 2015 get €2,000 towards legal fees.

Terms and conditions apply.

Contact us to discuss on 01-5052718.

 

 

More mortgage holders switch bank but total moving still tiny

New figures from the banks show that 240 people switched their mortgage from one lender to another in the April to June period.

This is up from 108 in the same period last year, according to the Banking and Payments Federation.

Goodbody Stockbrokers noted that switching is now at the highest level in four years, but it still only represents approximately 4pc of total lending volumes.

Founder of the Askabout.com website Brendan Burgess said it was likely homeowners were waiting to see if variable rates will fall further before making any moves to switch.

Bill proposes giving powers to Central Bank on rates

The Central Bank would be given powers to limit what interest rates banks could charge on variable mortgages, under legislation proposed by Sinn Féin.

The proposed legislation would give the Central Bank new powers to set out the maximum rate of interest that any of the five domestic banks could charge.

This restriction would mean that a new entrant to the market would not be discouraged by fears that their rates might be subject to control.

Sinn Féin has said the Government’s response to high variable rates has not been adequate.

Some 300,000 mortgage holders are paying among the highest variable rates in the eurozone.

The high cost of variables works out at around €300 a month more than the cost for a similar-sized mortgage in the rest of the Eurozone.

Haven lead the way for mortgage rate reductions

As previously mentioned, Haven announced reductions to their range of fixed and variable mortgage rates.

They are now market leaders with their 2,3,4 and 5 year fixed rates. These discounts are  available to both new and existing customers.

Reductions vary between 0.10% and 0.20%. For example, a 2 year fixed rate that was 3.80% now stands at 3.60%- giving a generous 0.20% back to customers.

With effect from 1st June 2015 their standard variable rate will be reduced by 0.38%- dropping it from 4.35% to 3.97%.

Should you require any further information please get in touch with our brokerage team on 01-5052718 or email us at info@coonanmortgage.com

Mass mortgage switching would ‘terrorise’ banks

A plan to get thousands of people to switch their mortgages to another lender is set to “terrorise” banks and force them to cut their rates.

The Irish Mortgage Holders Organisation (IMHO) will do the switching for people who are being overcharged for their variable rates, in a move that would overcome consumer inertia according to experts.

Finance Minister Michael Noonan has received a report from the Central Bank and is set to call in all the main lenders next week to pressurise them to reduce rates. He said he would like to see a series of phased reductions in variable rates.

Meanwhile, the IMHO is aiming to get up to 25,000 people to act – by teaming up with the One Big Switch Campaign, a group that has already done deals with electricity providers and health insurers for those who sign up with it.

David Hall of the IMHO said banks would dread such a mass switching cam

The plan is to get at least 10,000 people who owe less than their properties are worth to commit to moving their mortgage to a lender with a lower rate.

Switching to the best-value mortgage could see a family with a €250,000 home-loan saving around €1,500 a year. This is because there is a one percentage point gap between the highest and lowest variable rates in the market

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Haven Reduce Mortgage Interest Rates.

Haven are delighted to announce reductions to their suite of mortgage rates.. Applying to their fixed, standard variable and LTV variable rate products, these changes are a further demonstration of Haven’s desire to deliver real value for customers.

Standard variable rates are being cut from 4.35% to 3.97%, an overall reduction of 0.38%. LTV variable rates have been slashed by 0.25% across the board.

Two to five year fixed rates will see a drop of anywhere between 0.10% to 0.20% -depending on the fixed term.

Changes to fixed and LTV variable rates are effective from 7th May 2015, while the standard variable rates reduction comes in to effect in June 2015.

If you would like to discuss any of these changes further please do no hesitate to get in touch with us today.

Irish house buyers being charged much higher interest rates than others in europe – Central Bank

Irish house buyers are being charged way above the euro zone average in interest on their mortgages, according to the latest Central Bank data.

The cost of a typical new mortgage here increased in February, according to new figures from the Central Bank.

The average interest rate charged for a new variable rate mortgage was 4.2pc in Ireland at the end of February, according to the Central Bank.

The latest figures will add to the controversy over the high cost of Irish loans for customers with Standard Variable Rate mortgages.

When the interest rate on restructured home loans is included the average cost of a new or restructured mortgage falls to 3.38pc. The euro area average was 2.09pc

The average interest paid by all mortgage borrowers however is 2.72pc, a figure that reflects the nearly one-in-two home loans with a tracker rate that has an explicit link to the official ECB rate.

 

Help needed for those on sky-high variable mortgage rates.

TAOISEACH Enda Kenny has no plans to force banks to reduce sky-high variable mortgage rates, beyond asking them to show their customers “a degree of understanding”.

Mr Kenny appeared to be laying the groundwork for a U-turn on the Government stance that it cannot intervene in the day-to-day workings of the banks yesterday, by saying he would put pressure on them to cut variable rate holders some slack and pass on lower European Central Bank rates.

“I expect the banks to do better than they have been doing in respect of variable mortgage interest rates,” he said.

However, his spokesperson said there was “nothing further to add” when questioned last night as to what Mr Kenny would do if banks didn’t reduce home-loan payments.

More than 300,000 families on variable rates are paying interest rates that are four times higher than those on tracker rates.

Showing up Mr Kenny’s weak position, Finance Minister Michael Noonan insisted he has no actual legal powers to allow him to act.

However, Mr Noonan is expected to meet with the Central Bank governor today to discuss the issue.

“I will again speak to the governor of the Central Bank and ask the bank to see what influence they can bring to bear, to bring the variable mortgage rates closer to the cost of funds,” said Mr Noonan.

Variable rates here are more than double those charged elsewhere in the eurozone.

The gap in what is being charged means that a family with 20 years left to pay on a €200,000 mortgage, on a variable rate, is paying €4,000 more a year than a family with a tracker owing the same amount.

And the rates being charged to new mortgage customers are €600-a-year less than to existing variable rate mortgage payers.