We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
NEW CENTRAL BANK requirements for lenders, which will take effect from the beginning of next year, will make it easier for customers to get information about savings they could make by switching mortgages.
The Central Bank today released details of the rules, which follow 2015 findings that more than one fifth of borrowers could save money by switching.
The analysis of over half a million mortgages found approximately 16,000 could save over €1,000 in the first 12 months, and around 27,000 switchers have the potential to save in excess of €10,000 over the lifetime of the mortgage.
Most people who have a mortgage never switch to a cheaper offer. Reasons include not realising how much they could save, finding it difficult to compare mortgages and believing the process is too difficult or will take too long.
Under the new requirements which will come into force from 1 January 2019:
These changes will also mean lenders have to acknowledge receipt of a mortgage application within three days and make a decision within ten days following receipt of all the required information for assessment.
The aim of these changes is to encourage customers to shop around and make the switch if it will save them money. The regulator is also hoping that the new requirements will bring increased competitiveness to the market, with better rate offers from banks who will not want customers to switch to another lender.
Today the Central Bank also revealed it had instructed a number of lenders to withdraw or amend advertisements relating to mortgage incentives.
This review found some mortgage advertisements were not clear enough, particularly in relation to qualifying criteria and some details considered relevant by the regulator were hidden in footnotes. It instructed lenders to withdraw or amend around 75% of advertisements across online platforms, news media and billboards.
Commenting on the new rules today, the Central Bank’s director of consumer protection Gráinne McEvoy said the focus is on assisting consumers with lowering their mortgage repayments, where possible.
“Our research has shown that one in five mortgage holders could save money by switching their mortgage, and that significant numbers can make substantial savings,” she explained.
“These changes are aimed at making it easier for consumers to obtain this key information so that they are able to easily identify whether they are able to make savings by switching their mortgage, and make the process quicker and easier to complete if they do decide to switch.”
To embed this post, copy the code below on your site
Why have Irish banks been allowed to get away with not doing this to begin with?
We can be sure that those who have lost their homes, and who are currently in arrears will be happy to know that they got it with no grease because this has not been the rule since forever. And that those who are now in arrears because they were not given this vital information will continue to get it with no grease.
Welcome to Ireland, the wild west of banking.
@Ron O’Keefe: because they have been regulating themselves and looking after the boys so to speak.
@Ron O’Keefe: Yes the wild west of banking indeed….”increased competitiveness” with with a few bailed out taxpayer banks ruling the roost….pure joke really and if you think it will be a piece of pi** to switch you have to be kidding.
@Ron O’Keefe: pretty sure the wild west of banking is the central african republic.
@Keith Fay: Thanks for that. Feel so much better knowing that Irish banking practices are on par with the Congo. Rest easy folks.
Imagine the banks trying to save you money ,lol,we have the highest variable rates in europe, and not a monkey has been done about it by our up early in the morning TD s.
The reason we have the highest rates in Europe is because Irish Banks can’t enforce their mortgage when the customer stops repaying .Why have the foreign owned banks deserted the mortgage business in Ireland?
Got one of those when my fixed rate ended. They said I had to go back to my original LTV rate even though my loan is well below that now. Thanks AIB!
Easier yes, but they should be instructed to present it in a simplistic manner.
Banks, like insurance companies are in the habit of tying all T&C’s up in knots with complex mumbo jumbo, bullshit terminology and presenting it to the customer in the most complicated and confusing way possible.
I was called a fool for buying my home during the boom in 05, I look back now and think thank christ for Tracker mortgages.
How about forcing them to reduce the standard variable rate.
I forsee a computer error.
The phrase “closing the stable door after the horse has bolted” comes to mind
Banks should not be allowed to make massive profits by screwing the Irish population. They should (by all intensive means) be a non-for-profit business who’s only reason for existence is for the growth and prosperity of the real economy. When banks make massive profits it simply means that other areas of the economy have been starved of funds. In Germany I believe around 80% of loans are provided by community non-for-profit banks with only a small portion of loans being provided by commercial banks. It is it the opposite way around in Ireland. It needs to change.
if it wasn’t for the banks advancing ye credit, ye all wouldn’t have a “home”
@Mark Johnson: If it wasn’t for the banks defrauding customers some people would still have a home.
Are they going to outlaw the “rule” where you have to have your primary current account (i.e.the one you get paid into) with the lender? That’s one that stops a lot of people switching
Banks should be doing this anyway. CPC Rules that a compnay/bank should be acting in fairness and in best interest of the customer
have your say