Inertia and cunning costing us dear
Published 17/07/2015 | 02:30
The numbers of people who switch their mortgage are pitiful.
Just 38 a month go to the trouble of swapping one lender for another.
This is despite the fact that a mortgage is the biggest investment most of us will ever make in our lives.
Huge savings can be made on monthly repayments by divorcing your current lender and embracing a new one.
The Central Bank found that 100,000 people here could benefit. However, cunning banks do not make it easy to do so.
Their insistence on not cutting variable rates is a scandal, and comes despite urgings and threats from Finance Minister Michael Noonan. They have instead decided to introduce new, complex options - largely based on the loan-to-value.
Permanent TSB has what it calls 'managed variable rates', while KBC has fixed rates based on the value of your home relative to the amount still owed on the mortgage.
The increasingly complex nature of the different mortgage offers puts many people off going ahead with a switch.
And the regulatory authorities can't absolve themselves of blame for the lack of switching, either.
It is easy to forget the Central Bank has a consumer protection function. So where are the publicity campaigns to encourage people to move their mortgage?