A typical mortgage switcher in Ireland could save €2,399 or more within one year of switching their mortgage - or €9,597 over four years. This is according to new figures from the Irish Mortgage Advisors (IMA), which examined how much a typical switcher[1] could save within a year of switching their mortgage.
To realise these savings, IMA is urging mortgage borrowers to make the most of new Central Bank rules kicking in next Tuesday March 24 which experts at the representative body say should make it easier for them to switch mortgage. The rules, which are part of the Central Bank’s revised Consumer Protection Code[2], come into force on March 24, 2026.
New switching rules
Trevor Grant, chairperson of Irish Mortgage Advisors, explained:
“The new rules should make it much easier for borrowers to switch their mortgage. From 24 March 2026, lenders will be required to clearly explain mortgage switching options and the true cost of incentives such as cashback offers. Banks and lenders will also have to highlight that taking an incentive can lead to higher costs for consumers compared to not taking one.
The new rules will therefore help consumers better understand the impact of mortgage incentives, such as cashbacks and switching bonuses, on the overall cost of their mortgage. This will make it easier for borrowers to see whether switching could actually save them money, and to compare where the best mortgage deals are.”
IMA report that the new rules will also require lenders to provide title deeds to a borrower switching their mortgage (or their representative) within ten working days of the request (subject to certain exceptions). This is to combat delays currently experienced in the market.
Who stands to save most by switching mortgage?
In the run-up to the new mortgage switching rules, IMA is urging all mortgage holders to review their current mortgage contract to determine whether or not they could save money by switching rate and /or provider.
According to IMA, those likely to save considerable amounts by switching mortgage include:
- Those with fixed rates that are about to expire in the coming months - in particular, mortgage holders who are currently on ultra-low fixed rates which they locked into prior to 2022 -- because the interest rate they face on expiry of these rates is likely to be much higher than the fixed rate they secured prior to 2022, meaning it is crucial these borrowers shop around for the best deal.
- Those who recently embarked on a home energy upgrade or who bought a modern energy-efficient home as this means they are likely to qualify for a discounted green rate.
Mr Grant explained:
“If you recently embarked on a home energy upgrade or bought a modern energy-efficient home, switching to a lender that offers a green mortgage could see you make considerable savings on your mortgage.
If your current fixed rate is due to expire, it makes financial sense to review the mortgage options available at least 60 days before the end of your fixed-rate term. Many borrowers whose fixed rates are expiring this year are likely to be offered higher rates than they are currently on, reflecting interest rate increases over the course of their fixed period. However, by reviewing the market and considering a switch, borrowers may be able to secure a more competitive rate. And it is important to point out that borrowers are not obliged to accept the rate offered by their existing lender. Remember, your own bank may offer you the best terms available to you but it won’t tell you that better terms exist elsewhere. Market-based advice from a mortgage broker will ensure you are aware of all your options.”
The savings
To illustrate the potential savings available, IMA examined how much a borrower with a €300,178[3] mortgage (the average value of switcher mortgages being drawn down today) could save a year by switching their mortgage.
IMA found that a borrower could save €199.94 a month or €2,399.28 a year by switching from a mortgage with a 4.4% interest rate to one of the cheapest mortgage deals available today: a 3.12% variable rate. If the same borrower qualified for a green mortgage, they could save up to €218.13 a month or €2,617.56 a year.
The cash surplus
According to IMA, many lenders contribute to the cost of switching and in some cases, this leads to the client benefitting from a surplus cash payment, particularly where the lender offers cashback of 2% to 3%, as the cashback or switching bonus can sometimes exceed the switching costs incurred.
Mr Grant explained:
“Cashback and switching bonuses should never be a reason to switch – however, they are often a benefit. The cash received via a cashback or switching bonus is non repayable and in the majority of offers does not lead to a higher interest rate being charged by the lender”.
Mr Grant urged borrowers to make the most of the new mortgage switching rules that come into force next Tuesday March 24:
“A borrower could potentially save thousands over the lifetime of their mortgage by switching to better terms with their existing lender or to a cheaper lender with more flexible product options that facilitate overpayment, depending on the size of the mortgage and the interest rate applicable. For most people, their mortgage is their biggest financial commitment and it’s important there are no hurdles in the way of them shopping around and obtaining long-term better value here. The new Central Bank rules should better empower people to identify, and take up, the best mortgage deals. It’s important to regularly review the mortgage rates in the market. Even after switching mortgage once, there may be savings to be made in the future by doing so again. A mortgage broker will be able to tell you if there are better mortgage deals and potential savings out there for you – ultimately, you won’t know unless you ask.”
On the subject of legal costs, Mr Grant, urged house buyers to shop around for conveyancing services as lower-cost and specialist legal conveyancing services are available from some law firms.
50% increase in use of brokers for mortgage switching
According to recent figures from the Banking and Payments Federation of Ireland (BPFI), as of late 2025, 60% of mortgage switching takes place through brokers, compared to 40% in 2020. This means there has been a 50% increase in the number of mortgage switching applications handled by mortgage brokers over the last five years.
Commenting on these figures, Mr Grant said:
“The significant increase in the amount of mortgage switching taking place through brokers shows that Irish borrowers have become more savvy and are more likely to put the potential to make savings ahead of loyalty to any one bank or branch. The increase in the use of brokers also suggests that many Irish borrowers feel more confident and at ease when having the support of a broker to do so – given that mortgages are for most people, their biggest financial commitment, this is understandable.”
IMA’s 10-point guide to switching mortgage
IMA has the following advice for anyone considering switching their mortgage:
- Compare the overall cost of other mortgages on the market and see if you would save more money in the long run by switching to another lender.
- Don’t be too swayed by mortgage switching cashback offers – whilst they may be beneficial, do the maths and be aware that a lower interest rate on a mortgage may be more valuable than a bonus on a more expensive mortgage. Some lenders will offer you a combination of both.
- Only switch to another lender if you are fully satisfied that you will save a relatively significant sum over at least a three- year period.
- Always check if you can get better terms from your existing lender before considering switching. Contact them and ask them to confirm in writing your current terms, any alternative terms available from them and any costs associated in availing of the better terms should it make sense to change them. Then armed with this information, either shop around yourself or to ensure that you are fully informed, contact a market-based mortgage broker and ask them to compare your current terms and options with other offerings available in the market. If after this exercise, you find you can get a better mortgage deal elsewhere, move to a cheaper lender.
- The main costs you will incur when switching mortgage provider are legal fees (typically between €1,000 and €2,000 which also need to include VAT and legal outlay) and valuation fees (usually around €150 plus VAT). Costs vary so shop around and seek written confirmation. The majority of lenders will contribute to, or cover, your switching fees when you switch to them. This could be through a cashback bonus or a contribution towards legal fees.
- While it’s important to get as much of your switching costs covered as possible, your priority should be to get the cheapest mortgage you can so that you are maximising your savings.
- Another cost which you may encounter when switching is a potential breakage fee if you're on a fixed rate. This is to cover the potential cost a lender may incur as a result of you deciding to break a fixed rate agreement. If this is the case, you should check whether or not the savings you would make by switching would outweigh the breakage fee. Sometimes the penalty for breaking a fixed-rate may be far less than the savings you'd make by switching. However, if the breakage fee is more than the savings you would make, there is likely to be little point in switching. Be aware that breakage fees do not apply in all cases and there is no break fee applicable to customers on a variable rate who switch.
- It’s important to regularly review mortgage rates, even after switching a mortgage. Three to five years after a switch, there could still be substantial savings to be made by switching again.
- You must be able to prove to any new lender that you can keep up the repayments on the mortgage. If your financial circumstances have changed since your first mortgage approval, you may be unable to switch. As was the case when you first got your mortgage, you need to prove that you can repay the mortgage – and you must also have a good credit rating and not be in negative equity.
- Seek market-based advice from a mortgage broker if switching mortgage as this will help you understand which overall deal will save you the most. Whilst your own lender may offer you the best terms available, they are not obliged to advise you that better terms exist elsewhere.
[1] Assuming an average switcher mortgage value €300,178, as per BPFI’s latest mortgage drawdown figures (Q42025).
[3] Average switcher mortgage value, as per BPFI’s latest mortgage drawdown figures (Q42025).
