Mortgage delays: Thousands frustrated over long wait periods to switch lenders amid interest rate hikes
DUBLIN: Because of rising interest rates and other factors, thousands of applications to switch mortgage lenders are pending. There are even people in the country who have applied and waited for a year. Mortgage consumers prefer to move to financial institutions in order to get financial benefits and prevent interest rate increases. But it won’t happen anytime soon.
Many consumers are awaiting approval to shift their mortgage to another organization. Other institutions have made repeated requests for the documents you provided. Mortgage holders said they don’t understand why they have to get new bank statements and payslips. Borrowers are now in much greater trouble.
If the customer’s documentation is in order, the loan should be approved within five to twenty-five working days. That’s how it happens. Many lenders say they will hire more people, but the borrowers are still waiting.
According to brokers, the number of such applications has increased in the last year. The Association of Irish Mortgage Advisers (AIMA) chairperson, Trevor Grant, said the reason for the increase was the loss of KBC and Ulster Bank, which offer low-cost fixed-rate loans. Delays are also caused by remote working. Mortgages necessitate a paper-based procedure. As a result, remote working becomes ineffective.
Meanwhile, borrowers have expressed concern that if interest rates are decided to rise, they will be given a deadline to exit their mortgages. Many banks allow up to five days. Many borrowers are unable to swap banks during this time period.
At the same time, the Daft E website suggests that switching mortgages is a good idea right now. According to the website, this may save an average of €90 on monthly bills. According to the website, existing mortgage holders might save up to €8,900 over the next four years by changing and fixing their interest rates.
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