Rising house prices could be behind new figures showing more people are switching mortgages.
According to the Banking and Payments Federation of Ireland, just over 4,200 mortgages were approved last month, a 6% increase on the same time last year.
Approvals for a remortgage or switching options have seen a 72% rise in the last 12 months and are now worth €119 million.
While the number of first-time buyer mortgages dropped by 3%.
Daragh Cassidy, Head of Communications at price comparison and switching site bonkers.ie, said there are huge saving to be made by switching.
"The level of switching in the Irish mortgage market is still far too small, particularly when you consider the potential savings involved, but the increase is encouraging and is a reflection of growing competition among banks for new business," he said.
"Rising levels of equity due to the rapid rise in house prices has also helped as previously mortgage holders who were in negative equity would have had few options.
"Someone who has a mortgage of €250,000 and is paying a 4.3% standard variable rate could save over €250 a month by switching to the cheapest rate on the market.
"And while there are some upfront costs associated with switching mortgage provider, in many cases banks will provide cashback to those who switch or a contribution towards the legal fees.
"Irish mortgage holders still remain reluctant to switch, which is crazy given the potential savings involved.
"There’s now a huge variation in rates and incentives across all the different lenders so I would encourage anyone who’s been with their mortgage provider for a few years to consider their options and look into switching to a better deal.”
Digital Desk
