Monday 24 October 2016

Central Bank can push open door on switching

Published 14/04/2016 | 02:30

The Central Bank in Dublin
The Central Bank in Dublin

Do you want a cheque for €2,000 for little or nothing? It appears many homeowners do not - or simply don't want to take the simple steps necessary to save themselves this type of money.

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Research commissioned by the Competition and Consumer Protection Commission shows just 2pc of homeowners have switched their mortgage over the past five years. The same study shows savings of €2,000 a year can be achieved by families who manage to get a better variable mortgage rate.

The primary reasons for failing to switch are the complexities and difficulties surrounding the process.

Yet the research, carried out by Behaviour and Attitudes, finds mortgage holders would like a quicker and more efficient switching process.

The Central Bank has promised to look at this issue, yet has also admitted it is not in a position to force banks to lower variable rates. The regulator estimates one in five mortgage holders can save by switching.

With the demand for an easier mortgage-switching system established, the Central Bank would be pushing an open door with a welcome mat outside if it responded.

Irish Independent

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