Many Irish mortgage holders are simply paying too much on their mortgage. Invariably, somebody who is currently on a variable rate can save thousands simply by switching to a cheaper lender. However there are many other reasons to look at the equity built up in your home as a driver of investment or improvement.

1. Moving to a cheaper lender.

Maybe your lender hasn't offered you a new rate after the end of a fixed rate deal, or maybe their interest rate (usually called the standard variable rate) is too high. You may also be interested in finding a deal that gives you more flexibility, or you may be looking for the stability of a fixed rate.

2. Debt consolidation.

The majority of our remortgage clients include some element of debt consolidation in their new facility. Thus the remortgage can accommodate a number of needs including, consolidating debt and releasing funds for house improvements or whatever. Care needs to be taken however, when consolidating short term debt to be aware of the additional interest charges on refinancing over a longer term.

3. Releasing equity to acquire a residential investment property.

Increasingly our clients are using equity built up in their own home to move into the investment market. In this way, up to 100% of the price of an investment property can be financed provided the lender is satisfied that there is income to cover the mortgage, taking account of existing income and new rental income.

4. Home improvements

Historically home improvements have been the driving factor behind remortgaging in Ireland. Residential home owners in the past were less adventurous in moving into either the holiday home or investment markets but were always intent on improving their principal private residence. Remortgaging is an ideal form of finance for such improvements. Again, in a reluctance to change the historic pattern, the method was to call to your own lender and get a top up loan which was usually dearer than an already dear mortgage .The remortgage market has changed this by giving you a choice when investing further in your home.

If you want to talk to an adviser about remortgaging please get in touch.