Graham Barrett (BA LIB QFA)

A mortgage review is not always just about finding a lower interest rate. Sometimes, it is about bringing your borrowing together, funding improvements to your home and creating a clearer plan for the years ahead.

For one Irish Mortgage Corporation client, a review helped achieve all three.

By switching and restructuring their borrowing, the homeowner cleared an existing Credit Union car loan, released €70,000 for home improvements and reduced their remaining mortgage term from 18 years to 15 – while lowering their initial combined monthly repayments by €48.

The starting point: two substantial repayments

The client was managing two main monthly commitments:

Existing borrowing	Monthly repayment
Mortgage	€1,793
Credit Union car loan	€1,265
Total	€3,058

Although these repayments were affordable, the client wanted a plan that better reflected their longer-term goals.

They hoped to improve their home, simplify their finances and finish repaying their mortgage by age 65. Rather than looking at each commitment separately, our team reviewed the full picture.

Understanding the client’s options

The property had an estimated market value of €900,000, with substantial equity built up over time.

The proposed new mortgage was €422,476, representing a loan-to-value ratio of approximately 47%. This is the proportion of the property’s value being borrowed.

Our focus was on finding a structure that could accommodate the client’s existing borrowing and renovation plans within a shorter mortgage term.

The question was not simply, “Can we reduce the monthly payment?” It was, “Can we put a more suitable plan in place for what this client wants to achieve?”

The solution: switch, consolidate and improve

Following the review, the client moved to a new mortgage facility that:

Repaid the existing mortgage.

Cleared the outstanding Credit Union car loan.

Released €70,000 for home improvements.

Reduced the remaining mortgage term by three years.

The new arrangement was:

New mortgage structure	Details
Total mortgage	€422,476
Mortgage term	15 years
Initial monthly repayment	€3,010
Scheduled mortgage repayment age	65

Instead of managing separate mortgage and car-loan payments, the client now had one monthly repayment, alongside the funds needed to carry out their planned improvements.

The outcome: a clearer plan, with more achieved

The client’s combined monthly commitment fell from €3,058 to an initial mortgage repayment of €3,010 a reduction of €48.

The broader outcome was more significant than that monthly difference alone:

€70,000 available for home improvements.

The separate car-loan balance repaid through the new mortgage.

A mortgage term shortened from 18 years to 15.

A scheduled mortgage end date at age 65, provided repayments are maintained.

One consolidated monthly repayment.

For this homeowner, the value of the review was bringing several goals into one manageable plan.

Why the full cost matters

A lower monthly repayment does not automatically mean a lower total borrowing cost.

In this case, the €48 reduction compares the client’s existing combined repayments with the initial new repayment. It does not establish a lifetime saving: the original car loan would eventually have ended, while the refinanced balance is now being repaid through the mortgage.

Consolidating shorter-term debt over a longer period can increase the total interest paid, even where the interest rate is lower. Switching costs, including legal fees, valuation fees and any applicable breakage charge, also need to be considered. A personalised comparison of the total cost is essential before proceeding.

Importantly, the consolidated borrowing is secured against the home. This changes the consequences of failing to repay and is a key consideration when assessing suitability.

Could your mortgage better reflect your needs today?

Your circumstances may have changed considerably since you first arranged your mortgage.

A review may be worthwhile if you:

Have not reviewed your mortgage in several years.

Are managing a mortgage alongside other loans.

Are planning renovations or home improvements.

Want to explore a shorter mortgage term.

Would like a clearer repayment plan as retirement approaches.

Every case is different. For some homeowners, switching or restructuring may be suitable. For others, retaining the existing mortgage and repaying other debts separately may be the better option.

At Irish Mortgage Corporation, we take time to understand your goals, compare the available options and explain both the benefits and the trade-offs.

This case study reflects an individual client’s circumstances and is not a guarantee of similar outcomes. Repayments quoted relate to this case and should not be treated as a current mortgage offer. Rates, fees and lender criteria apply, and repayments may change.

Warning: If you do not keep up your repayments, you may lose your home. Consolidating debt into a mortgage may extend the repayment period for that debt and increase the total amount you repay.

Contact me on

Tel: 01 669 1052

Email: grahamb@irishmortgage.ie

🗓️ Book a FREE consultation to get started.