Eoin Clifford (LIB QFA)

Why switching your mortgage now can make sense

With the European Central Bank announcing the increase of rates again, many Irish mortgage holders are asking the same question:

“Should I be doing something about my mortgage now, before my repayments go up?”

Irish mortgage rates have already been edging higher in 2026, and there is still a big gap between the best and worst rates on the market. That means the price you pay for your mortgage every month and how you structure your debt matters more than ever.

One of the most powerful tools you have is switching your mortgage to a more competitive rate and, where appropriate, consolidating high‑cost loans into that cheaper, longer‑term borrowing.

Here is a real‑life style example of how that can work.

A real example: turning three monthly repayments into one and saving €865 a month

This customer came to us with:

An existing mortgage with Lender A

A Bank of Ireland home improvement loan

An Avant Money home improvement loan

All of the borrowing related to their home, but it sat across three separate accounts, all at different rates and terms.

The starting point

Mortgage with Lender A: €775 per month

BOI home improvement loan: €967 per month

Avant home improvement loan: €456 per month

Total monthly outgoings on home and home‑related loans:

€775 + €967 + €456 = €2,198 per month

On top of being expensive, this was three different repayment dates, three sets of paperwork and higher‑cost short‑term loans sitting alongside a mortgage.

The property had:

Existing mortgage: €179,000

Additional home‑improvement borrowing: €53,646 (BOI) + €37,854 (Avant)

Target new total mortgage: €270,500

Estimated market value (EMV): €460,000

That gave a loan‑to‑value (LTV) of around 58%, which is attractive to many lenders when pricing rates.

The new structure

We helped the client:

Switch the existing mortgage to a more competitive lender

Release equity to clear both home improvement loans

New mortgage:

Single consolidated mortgage: €270,500

Monthly mortgage repayment: €1,333 per month

New total monthly outgoings on home‑related borrowing:

€1,333 per month (one payment, instead of three)

The impact

The difference in cash flow was significant:

Old total repayments: €2,198 per month

New total repayment: €1,333 per month

Monthly saving: €865

Even after allowing for the switching costs at around €1,500 in legal fees and €200 for a valuation the monthly saving of €865 meant these costs were effectively covered within just a few months.

After that point, every month of lower repayments is pure, recurring savings.

Why switching matters even more when rates are rising

ECB and market commentary continue to point to a higher‑for‑longer interest rate environment than many borrowers were used to in the past decade. While Irish mortgage rates vary by lender, type and LTV, there is a large spread between the cheapest and most expensive deals on offer.

Recent analysis suggests a typical switcher can save around €200 a month or more by moving from a relatively high rate to one of the more competitive products on the market. Over a year, that is roughly €2,400 or more if the starting rate is higher or the mortgage larger.

For borrowers juggling a mortgage and expensive short‑term loans, the gains can be even greater when:

You switch to a better rate, and

You roll qualifying home‑related loans into the cheaper mortgage structure in a responsible way.

In a rising‑rate world, this kind of review is no longer a nice‑to‑have. It is an important part of keeping your household finances resilient.

What you need to weigh up

Switching and consolidating can be powerful, but it is not always the right move for everyone. Things to consider include:

Interest rate and term: You may pay a lower rate but over a longer term, so it is important to compare the total cost over time, not just the monthly repayment.

Switching costs: Legal fees, a property valuation and, if you are currently in a fixed rate, any break fee from your existing lender.

Discipline around future borrowing: Consolidation only works if you avoid building up new short‑term debts on top of the refinanced amount.

Affordability and suitability: A new lender will reassess your income, spending and credit record to make sure the new structure is affordable for you.

Our role is to do these maths with you: compare the old and new structures, highlight the pros and cons clearly and only recommend a switch where the long‑term benefit outweighs the costs and risks.

Consumer protections and faster switching

Switching is also becoming more straightforward from a regulatory perspective. Under the Central Bank’s Consumer Protection Code, lenders now have to:

Tell you about cheaper options available on their own books

Provide personalised savings estimates when outlining alternatives

Release title deeds more quickly to support switching applications

With ECB rates under pressure and retail mortgage rates shifting, these rules are designed to make it easier for borrowers to see the benefit of switching and act on it.

Is it time to review your own mortgage?

If you have:

A mortgage you have not reviewed in years

One or more personal loans or high‑cost home‑improvement loans

Heard about rate rises and are not sure how exposed you are

then it may be time to take a closer look.

Irish Mortgage Corporation can:

Review your current rate, balance and term

Compare them against the best options available across multiple lenders

Model scenarios like the one above so you can see the true monthly and long‑term impact

Guide you through the switching process from first conversation to new mortgage drawdown

If the numbers do not stack up, we will say so. But if they do, you could free up a significant amount of cash every month just like the €865 monthly saving in the example above and put yourself on a stronger footing as interest rates evolve.

If you would like to explore whether switching or restructuring your mortgage could work for you, get in touch with me for a free, no‑obligation chat about your options.