Dublin: New measures introduced by the Central Bank of Ireland have come into effect, making mortgage switching easier, faster, and more transparent for borrowers. The changes form part of a broader overhaul under the bank’s updated Consumer Protection Code.
Under the new rules, lenders are now required to provide clear and detailed information to customers considering a mortgage switch. This includes outlining eligibility requirements, associated costs, and the overall cost of credit. The aim is to enable consumers to make more informed decisions and facilitate easier comparisons between lenders.
A key feature of the reforms is the obligation on lenders to clearly indicate potential savings from switching to a more competitive mortgage. Borrowers must also receive timely reminders about cheaper options that may be available in the market.
To streamline the process further, lenders are now required to provide title deeds within 10 working days upon request—an issue that has historically caused delays in switching.
Industry estimates suggest that switching mortgages can result in significant savings. According to SYS Mortgages, households could save up to €9,600 over four years by moving to a lower-rate provider. However, switching is not without cost. On average, borrowers may incur expenses of around €2,000, covering legal fees, solicitor services, and administrative requirements.
The Central Bank has advised consumers to consider lenders that offer simplified switching processes to help offset these costs and reduce administrative burdens.
Looking ahead, further updates to the Consumer Protection Code are expected next year, including stronger safeguards against fraud and scams. The revised framework will also expand the definition of “vulnerable customers”, providing clearer guidance on identifying and supporting individuals who may require additional protections.
Irish Samachar English News