One in five could save by switching mortgage

LISTEN: Central Bank says 27,000 could save up to €10,000

One in five could save by switching mortgage

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One in five homeowners could save money by switching mortgage lenders.

The Central Bank says 27,000 mortgage holders could save up to €10,000 over the lifetime of their loan.

More than 100,000 people on variable rate mortgages could make savings on their loans by switching to a lender with a lower interest rate.

Research from the Central Bank says around 26,000 people could reduce what they are paying by around €1,000 a year if they switched provider.

However, half of mortgage holders cannot find a cheaper rate - mainly because they are on a tracker.

While many customers are put off switching because they think it will be expensive.

One-third of homeowners could make savings by switching but are not in a position to do so because of arrears or high loan to value ratios.

Currently just 38 homeowners a month are switching at the five main banks.

Michael Dowling is a partner at Abacus Finance. He told Newstalk Breakfast says people should challenge their banks.