Case study: Switch your mortgage in 7 weeks

With mortgage rates on the rise, many homeowners on variable or tracker mortgages are eager to switch to a cheaper rate before the European Central Bank (ECB) increases mortgage rates again. 

However, with the average mortgage switching journey taking up to 6 months in Ireland, many people are put off by the process and as a result, lose out on the savings they could make by switching. 

At bonkers.ie, our mortgage broker service understands this, and that’s why we are here to help you switch your mortgage in the most stress-free and fastest way possible. In fact, we recently did just that with our client Paul. 

Paul completed his mortgage switching process through our free broker service just 7 weeks after submitting his application. 

So without further ado, let’s take a look at Paul’s recent mortgage-switching journey with bonkers.ie. 

Paul’s mortgage background and profile 

• Paul lives in a four-bedroom, semi-detached house in Dublin
• He is self-employed

Before switching to a new mortgage lender,

• Paul was on a fixed rate of 2.9% with Bank of Ireland
• He had €456,000 remaining on his mortgage
• He paid off a lump sum of €150,000, resulting in the amount remaining decreasing to €306,000 

What rate is Paul switching to? 

Upon running a comparison and contacting our broker team, Paul submitted an application to Permanent TSB (PTSB) for their 4-year fixed mortgage rate of 2.05%. 

This loan requires a loan-to-value (LTV) ratio of less than or equal to 60%. LTV refers to the ratio between the amount borrowed and the value of the property. 

This means in order to qualify for the loan with PTSB, Paul was required to have a 40% equity stake in his home.

How much will Paul save on his monthly mortgage repayments? 

After switching to his new fixed rate of 2.05%, Paul’s monthly mortgage repayments will decrease by €125.11. This means that by the end of the 4-year term, Paul will have saved €6,005.28 in total. 

To note: If Paul had not paid off a lump sum of his mortgage prior to starting the switching process, the savings he would’ve made by switching would have been higher. 

Key dates for the mortgage switch

• Initial inquiry: Paul first used the bonkers.ie comparison service and inquired about switching mortgages through our broker service on the 4th of August. He took three weeks to decide whether using our broker service was the best option for him.
• Application submission: Paul submitted his application through our broker service on the 24th of August, marking the first week of his mortgage journey.
• Approval in Principle: Paul was granted Approval in Principle (AIP) from PTSB on the 26th of September.
• Valuation: Paul got a valuation on his home to determine what it’s worth on the 27th of September.
• Loan offer: Happy with the valuation results, PTSB issued a loan offer to Paul on the 7th of October.
• Mortgage drawdown: Finally the mortgage was drawn down on the 18th of October, signifying the end of his 7-week mortgage switching journey. 

The underwriting process

Upon assessing Paul’s application, PTSB’s team then forwarded it to the underwriting team. This team decides whether an applicant is suitable for a mortgage.

In Paul’s case, the underwriting process took three weeks and then he was granted AIP. 

When he received AIP, PTSB provided a code that was needed to get a valuation carried out on Paul’s home. Paul’s code was forwarded to us here at bonkers.ie, and we then arranged for a valuer to go out and assess his property. 

Typically our broker team arranges for a valuer to visit a property within 48 hours. For Paul, his valuation was carried out the day after he received AIP.

Insurance updates

Once the valuation had taken place, Paul needed to change the deed of assignment on his existing mortgage protection policy to his new lender before he could draw down his mortgage.

Similarly, Paul also had to change the interested party noted on his home insurance policy from Bank of Ireland to PTSB.

This was a relatively quick process once Paul contacted his insurance providers.

It pays to be prepared

The key reason why Paul’s mortgage switching process was completed in 7 weeks was due to him being prepared.

He had all the documents, such as the last 6 months of bank statements, up-to-date and ready to submit to our broker service. As he is self-employed, he was also required to submit extra documentation to prove the financial security of his business. 

This additional documentation included an audit of his financial accounts and copies of the past 3 years of tax returns he paid. 

Along with having his documents organised, Paul hired a solicitor in advance of the mortgage switching process so that once the journey began, his solicitor could get to work straight away. This removed any delays that could have materialised when trying to find a solicitor.

Start your mortgage switching process today

As Paul’s new mortgage rate is only fixed for four years, once the term is up he could decide to switch again to continue saving. 

If you want to experience sizable savings on your mortgage, why not compare rates today on bonkers.ie?

You can compare rates from Ireland’s main lenders in just a few clicks using our comparison service, and if you decide to go ahead with your switch, you can use our broker service. 

Our service is 100% free and completely digital, meaning you can carry out everything in the comfort of your own home.

Don’t forget, you can also compare mortgage protection and home insurance on bonkers.ie, both of which are needed to draw down a mortgage. 

Helpful mortgage switching articles

If you’d like to start your mortgage switching journey today but are unsure where to begin, check out our array of helpful mortgage switching articles here.

• Discover how to switch mortgages on bonkers.ie.
• Take a look at our mortgage Quickstart Guide to get an overview of how to apply for a mortgage. 
• Get a step-by-step breakdown from start to finish of the mortgage compilation process here. 

Keep an eye on our blog and guide pages for more top tips and advice.

Get in touch

Are you interested in switching mortgages? Let us know today on Facebook, Twitter and Instagram.