Q With interest rates on the rise, I worry I’ve left it too late to switch my mortgage. Can I still save money if I do it now?
Pawel, Co Kerry
A Even in an environment of rising rates, you can still save money by switching. The process can seem quite complicated, but the following steps should help you decide whether it makes sense to switch and how to go about the process.
You don’t mention whether you’re on a fixed-rate or a variable-rate. Either way, your first step should be to review the mortgages available from different providers. One easy way to do this is by using our online mortgage comparison money tool at CCPC.ie. This allows you to compare more than 40 different mortgage products and to figure out how much you could save on your monthly repayments.
You can also find out if you qualify for a better rate with your existing lender by checking your loan-to-value (LTV) ratio. This is how much you owe on your mortgage in relation to how much your house is worth, and given the increase in house prices in recent years, your LTV could be lower than when you took out your mortgage. If this is the case, you might be able to get a reduction in your mortgage rate.
If you have improved the Building Energy Rating (BER) of your home since taking out your mortgage, you may be eligible for a green mortgage rate. These are currently the most economical rates on the market. For more information on the BER or to find a BER assessor, go to SEAI.ie.
If you’re on a fixed-rate mortgage, you’ll need to find out if you have to pay a breakage fee. This can be charged by lenders when customers choose to leave a fixed-rate mortgage, and you should take this into account when calculating how much you can save by switching. If you are coming to the end of a fixed rate, your lender must tell you about any cheaper options available 60 days before your fixed rate period ends.
If you’re switching to a green rate with your current provider or moving to a new LTV bracket, you may only need to provide an up-to-date BER or a fresh valuation of your home. But if you’re changing providers, you will need to complete a full mortgage application and provide all the documentation required, including ID and proof of address, bank statements, and salary certificates. You can find more information about this at Ccpc.ie.
If you do move to a new lender, remember to notify your mortgage protection provider of this change so they can update your policy.
If you’re on a tracker, it’s important to remember that these are no longer available in the Irish market, so once you switch, you will not be able to return to a tracker rate. Given the rise in interest rates, it may well make sense to move to a fixed-rate. But if you can afford the rates as they are, you might choose to wait and see if rates fall again. This depends on your own personal circumstances, so before switching from a tracker mortgage I strongly recommend that you speak to a broker or financial adviser to determine the best option for you.
Q I bought a gas range in 2019. I was contacted by the manufacturer last year to say there is an issue with the grill that makes it dangerous to use with the door closed. I rarely use the grill anyway and never with the door closed. The manufacturer is offering to fix it but it seems like a lot of hassle. Do I need to?
Anne, Co Dublin
A You absolutely do. Please get in touch with the manufacturer immediately and accept the modification they’re offering, even if it causes you some inconvenience in the short term.
I expect you were contacted because a safety issue was identified in certain gas range cookers with gas grills that were manufactured by Glen Dimplex. The safety issue applies to some models of gas range cookers, including the brand names Belling, New World, and Stoves. This is a very serious issue involving the build-up of dangerous levels of carbon monoxide, which could be fatal.
You might only use the grill with the door open, as recommended by the manufacturers, but there’s always a chance a family member or visitor will accidentally close the door or use the grill without your supervision. It’s simply not worth the risk, so arrange for a free modification of your range as soon as possible by contacting Glen Dimplex at consumersupport@glendimplex.com or by calling their helpline on (01) 691 7111.
Other consumers who have a gas cooker should also check the products listed in the online safety notice to see if it’s one of the affected models – particularly if you are not the original owner, as the manufacturer may have been unable to reach you.
The CCPC is responsible for ensuring the safety of a wide variety of products sold in Ireland. Keep an eye on our database of product recalls and safety notices at CCPC.ie and via the share alerts on our social media channels – especially if you have children, as many recalls involve toys and children’s costumes.