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The process of applying for a mortgage can often be very daunting and filled with uncertainty, but not if you get the right mortgage adviser. Find out what to look for with our mortgage adviser ultimate guide Ireland 2022.

In this article, we aim to outline what a mortgage adviser is, why you should consider going to one, and how to find the best one for you.

1. What is a Mortgage Adviser Ireland 2022?
2. Why should I go to a Mortgage Adviser Ireland 2022?
3. How do I find the right Mortgage Adviser for me?
4. Summary Mortgage Adviser Ultimate Guide Ireland 2022

Top Mortgage broker comparison

What is a Mortgage Adviser? Ultimate Guide Ireland 2022

A mortgage advisor is a qualified professional who aims to find the best mortgage deal for you given your personal circumstances.

With over 250 mortgage products offered by 9 different lenders in Ireland, it’s no wonder so many struggle to find the best mortgage for them, and end up going with a mortgage that could lose them thousands in the long run.

A mortgage adviser will help you work out how much you can afford to borrow and use their knowledge of the market to find the best deal available.

When looking for the best deal out there, a good mortgage adviser will;

• Talk with you to figure out what you can afford to borrow given your financial situation

• Search the market for the best deals available

• Compare deals offered by lenders

• Tell you about different deals to help you find one that best suits you

Why should I go to a Mortgage Adviser? Ultimate Guide Ireland 2022

There are many benefits to seeing a mortgage adviser, as a good mortgage adviser will;

• Look at your financial circumstances to find a deal that best suits you

• Use their knowledge of lenders to find ones that are right for you

• Access exclusive deals not available directly

• Help you with the paperwork that comes with applying for a mortgage

• Help you find a deal that you are likely to get

A mortgage advisor can help lift the burden that comes with applying for a mortgage.

By using their connections and knowledge of the market, mortgage advisers can help find a deal that is affordable and right for you.

Finding a deal yourself can be a long and difficult process. Mortgage advisers are there to save you time and effort, and may even be able to find you a deal you can’t on your own.

How do I find the right Mortgage Adviser for me? Ultimate Guide Ireland 2022

There are many factors you should take into consideration when looking for a mortgage adviser, such as;

Type of mortgage adviser

Mortgage advisers can either act independent or work on behalf of a lender. It’s important to know if you’re mortgage advisers is working for a financial institution, as this can impact their advice.

It’s also important to see how many lenders your mortgage adviser works with, as mortgage advisers who only work with a certain amount of lenders can only offer you a limited amount of deals.

An independent mortgage adviser will show you deals from many different lenders as they are not tied to only one, meaning you can choose from a wider range of lenders and deals.

Fees

Some mortgage advisers will not charge their clients, as they’re paid a commission based on the value of their clients mortgage once it has gone through.

Yet some mortgage advisers may charge their clients a flat fee of €100-€150. Other advisers may charge their clients a commission based on a percentage of their mortgage. This can be a problem if you are looking to take out a large mortgage.

Always ask mortgage advisers about their fees before deciding who to go with.

Qualifications

It’s important to find out what qualifications your potential mortgage adviser has. Before going with a certain advisor, check that they;

• Are a Qualified Financial Adviser (QFA)
• Are an Accredited Product Adviser (APA)
• Are registered with the Central Bank of Ireland

It’s vital that the advisor you go to has the right qualifications to give you accurate financial advice when it comes to your mortgage.

Find out more on how the Central Bank regulates mortgage advisers here.

Summary – Mortgage Adviser Ireland 2022, Ultimate Guide

In short, mortgage advisors are professional financial advisers who are there to act in your best interests and find the best mortgage for you.

Mortgage advisers help ease the stress of applying for a mortgage by figuring out what you can afford to lend, getting and comparing deals from lenders and finding the best one for you.

Next Steps – Mortgage Adviser Ireland 2022, Ultimate Guide

We at moneysherpa have qualified financial advisors on hand to help you find the best mortgage deal for you. If choose moneysherpa as your mortgage adviser, you will;

• Get our expert opinion free of charge

• Have a wide range of options from a wide range of lenders, as we act independent from financial institutions

• Have your paperwork dealt with digitally in one of our free online calls

• Get comprehensive advice on all your options to find the best deal to suit your personal circumstances

• Get our lifetime best rate guarantee, meaning our sherpas will always check the market to switch if we find a better deal for you

• Have all your questions or queries answered by our team of professional mortgage advisers

Start your application online with moneysherpa here. 

You can book a free, no obligation video chat with the mortgage sherpa team here.

Read more about the mortgage sherpa team here.

With runaway inflation across the continent the European Central Bank looks set to hike interest rates with the cost of Irish mortgages set to continue to rise as a result. 

So the question your probably asking is should i fix my mortgage in Ireland 2023?

ECB rates have risen by a staggering 4.0% in the last year and are due to rise again when the ECB rate gurus next meet.

The financial markets are expecting rates to have risen by at least 0.5% in the next 12 months, which would add a further €100 a month to the average Irish mortgage.

The good news is that by fixing your mortgage rate now you can dodge the coming rate hike and probably cut your current repayments at the same time.

The Irish mortgage market is almost unique in having fixed mortgage rates priced well below variable rates and over 140,000 variable, 240,000 tracker and around 200,000 fixed rate mortgage holders could save big by switching now and fixing on a lower rate, read on or check out our video explainer to see how much you could save and how.

• How much you could save by fixing? – Should I Fix My Mortgage Ireland 2023
• The Pro’s and Con’s of Fixed v Variable – Should I Fix My Mortgage Ireland 2023
• Who Should I Fix With? – Should I Fix My Mortgage Ireland 2023
• How to fix your mortgage rate – Should I Fix My Mortgage Ireland 2023
• In a Nutshell – Should I Fix My Mortgage Ireland 2023

How much you could save by fixing? – Should I Fix My Mortgage Ireland 2023

According to the latest Irish Central Bank figures available, the average variable rate in Ireland is around 3.8%, this is probably what you are on if you are with Bank of Ireland, AIB, Ulster, KBC and PTSB and not on a tracker which now average at 4.65%.

If you are with any of these banks then you should look into switching to a fixed rate.  If you’re not sure about what rate you’re on dig out your annual mortgage statement, or take a gander at the table below.

So let’s run the numbers on an average outstanding loan of €200,000 and average outstanding term of 15 years. This is the case for Joe Average based on data from the Irish banking and payments federation.

• Total monthly at variable rate of 3.8% = €1,459
• Total monthly at a fixed rate of 2.96% = €1,372

That’s a saving of €87 a month or €15,660 over the full term and that’s not even an extreme case, that’s just Mr Joe Average.

However, that’s not even the biggest reason for you to switch.

The no 1 reason to switch is that you will cap your repayments, protecting yourself from further rises.

The Pro’s and Con’s of Fixed v Variable – Should I Fix My Mortgage Ireland 2023

The bizarre thing is that fixed rates are usually a better choice for mortgage holders, even before you compare fixed versus variable rates savings, because they are less risk.

For most people the certainty of knowing the payment at the end of the month won’t rise for 5, 10 or even 20 years far outweighs the risk that they might end up paying more than the going rate at some point.

In fact that’s why fixed rates in other countries are usually more expensive than variable, they are effectively ‘insurance’ that your repayments can’t rise.

Let’s take Mr Joe Average again who is on a variable rate of 3.8% paying €1,459 a month.

Remember that expected ECB rate increase of 2%? The banks will pass that straight through to Joe increasing his variable rate to 5.8%.

• Total monthly at variable rate of 3.8% = €1,459
• Total monthly at variable rate of 5.8% = €1,666
  Total monthly at a fixed rate of 2.96% = €1,372

If the ECB hike rates by 2% as expected, Joe’s monthly repayments on his variable rate will go up by €207 a month. Making his monthly repayments €294 more a month than if he had fixed for 15 years with Avant Money.

There are still a couple of things to watch out for though with fixed rates. As well as the chance you could end up paying more if rates fall, you can also be penalised if you want to payback early.

That said on rates falling, most experts expect interest rates to stay high for years to come and never to fall back to the super low rates seen between 2008-2022.

Plus you might not have to pay a ‘breakout’ fee to get our of your fixed period. Under EU legislation the banks can only charge you the difference between the rate when you originally fixed and the rate when you look to repay. 

Who Should I Fix With? – Should I Fix My Mortgage Ireland 2023

For most people we advise switching to the non bank lenders. As new entrants these lenders offer attractive long term rates, but also the best variable rates once you come off your fixed rate period.

This gives these mortgages a much lower average rate across the whole mortgage term, known as the APRC [1].

We would also encourage you to fix for as long as you’re comfortable with. Although this may cost you more in the short term, the benefit of capping your repayments will out weight the extra cost for most people.

The best fixed deals in the market across all 7 lenders and 290 mortgage products are shown below.

How to fix your mortgage rate – Should I Fix My Mortgage Ireland 2023

The simplest way to fix is to get in touch with your existing lender and get them to move you to their fixed rate. 

This option, although hassle free, is unlikely to deliver big savings as many of the fixed rates are reserved for new customers only and the best fixed rates in the market are with the non bank lenders like Avant Money.

So the best way to fix your mortgage and save big is to switch your mortgage to one of these ‘non bank’ lenders. With regulation and new online platforms emerging in the last few years switching is now quite straightforward, most brokers will handle it for free as they are paid a commission by the lenders.

In a Nutshell – Should I Fix My Mortgage Ireland 2023

So should I fix my mortgage?

Probably.

With such uncertainty about interest rates right now almost everyone should look into fixing. Being able to cap your repayments against future potential interest rate rises, makes sense for almost anyone with a mortgage.

Even those with trackers or on shorter term fixed rates need to think about if they can afford not to.

If your on a variable though it really is a no brainer, you will save thousands and remove the worry around rising repayments.

Next Steps – Should I Fix My Mortgage Ireland 2023

You can read more about the switching process here or check out the best fixed rates here.

If you’re on a tracker you can read our guide to switching from a tracker here or if you are in a fixed rate our guide to breaking your fixed rate here.

If you need individual advice on the best options for you, you can book a mortgage call with a qualified advisor here.

With interest rates peaking, you’re probably wondering should I fix my tracker mortgage? The answer used to be a flat out no, but now the answer depends on two things.

1. What type of tracker mortgage are you on?
2. How much can you afford your repayments to rise by?

Check out our Tracker Mortgage Ultimate Guide Ireland 2024 to find out more.

Tracker mortgages come in different flavours based on how much extra interest they charge over the European Central Banks (ECB) base interest rate. 

The average tracker in Ireland charges 1.15% above the ECB base rate based on the latest data from the Irish Central Bank. If you are on a tracker mortgage that charges over 1% above the ECB rate you should think about fixing your tracker as you are already paying more than you could on a fixed rate.

If you are on a tracker mortgage that charges less than 1% above the ECB rate, it still might make sense for you to fix your tracker mortgage. 

Why? With experts predicting ECB rates will stay around 4.5% well into 2024 and rates to only come down slowly, most trackers could remain more expensive than current fixed rates.

Based on the average outstanding tracker value of €81,322 and a term of 15 years we have calculated the average savings by fixing at the best rate on the market against the forecast ECB rate for 2025 of 3%-3.5%.

The numbers above assumes the ECB rate does not come down below these rates for the remaining term. The latest ECB survey of expert forecasters indicated that most experts expect ECB rates to stay high until 2024 and then level off between 3-4% from 2025. It is very unlikely that rates will ever return to the levels seen after the 2008 financial crisis.

Unfortunately waiting to see which way things pan out isn’t really an option as lenders are likely to withdraw the ultra low fixed rate deals currently available at any moment.

So, should you fix your tracker mortgage?

Fixing your tracker is a big decision, once you fix there is no going back to your tracker rate. If you don’t fix however you are at risk of significant increases in your monthly repayments. Every case is different, so getting advice from a qualified mortgage advisor before making the final decision is crucial.

Check out us sharing our advice for tracker mortgage holders on Ireland AM or read on to find out more.

1. What’s a tracker mortgage?
2. What’s the cost of the ECB rate hike on my tracker mortgage repayments?
3. Should I fix my tracker mortgage?
4. How do I fix my tracker mortgage?

What’s a Tracker Mortgage Ireland 2024?

A tracker mortgage is a mortgage that follows or ‘tracks’ the ECB base rate. These mortgages were introduced by banks in the Celtic Tiger years in an attempt to cash in on the Irish housing boom. 

Depending on the lender and when you signed up, rates ranged from 2.5% above the ECB base rate down to as low as 0.5% above the rate. The average tracker rate is 1.15% over the ECB base rate.

After the financial crash of 2008 ECB interest rates plummeted to 0%, this made tracker mortgages very attractive for consumers and loss making for the banks.

As a result Irish banks withdrew all tracker mortgages from the market and attempt to move a number of customers off tracker mortgages to try to reduce their losses. This is known as the ‘tracker mortgage scandal’ [1] resulting in customers losing homes and millions of euros in both costs and fines levied on the Irish banks.  

How Does Fixing Compare to Sticking with My Tracker Mortgage?

In 2022 the European Central Bank raised the ECB base rate that tracker mortgage rates follow from 0% to 0.5% in July, added a further 0.75% in September and 0.75% in November, then 0.5% in December.

Most recently in February this year the ECB added a further 0.5% and announced it will hike rates by 0.5% again in March and 0.25% in June. All this takes the ECB rate to a record 3.75%.

That means the average tracker rate has gone from 1.15% to 4.95% in just 8 months, adding over €24,000 in total to the cost of the average tracker mortgage of a 15 year term. Depending on which tracker rate you are on then, tracker mortgage rates will rise to around 4.0%-6.0%.

They are doing this to try to reduce inflation by making credit more expensive to consumers. 

But, markets indicate the ECB may put through even more increases before the summer’s out.

Most now expect to see a further 0.25% hike before July.

The average outstanding tracker mortgage in Ireland is €81,322 and the average term people have left is 15 years. By fixing onto the best rate on the market the average tracker customer will save €10,817 at an ECB rate of 3.5%.

You can calculate your own potential savings with our handy tracker calculator here.

The average savings based on switching to the best rate in the market are below.

Here’s the savings range from the highest tracker to the lowest as well, just in case you need it.

You can check out our explainer video here or read on to use our handy tracker calculator and get the full lowdown on the pro’s and con’s of fixing.

But, there is no reason that rates won’t go higher.

In the early 2000’s for example Central Bank interest rates were around 4.5%, that’s 1% higher than now, so would add €100 to the average monthly repayment.

If increases of that order may potentially cause issues with making your mortgage repayments, then you should think about fixing.

Should I Fix My Tracker Mortgage Ireland 2024?

So should I fix my tracker mortgage? A tracker mortgage is a variable rate mortgage so is exposed to interest rate hikes. The average tracker rate is now 4.65%, increasing the average repayment by 28% or €24,000 over a 15 year term.

With inflation across Europe still on the rise it’s not clear how high rates might go or when they might come back down again.

In fact, the near zero interest rates we have had since 2008 have been historically unprecedented and may believe that rates may never return to the levels we have seen for the last decade. Most analysts now predict that if ECB rates fall in future a level of around 2.5%-3.0% would be the most likely scenario.

Most experts agree that ECB rates are unlikely to return to previous rates for many years if at all.

The good news is that fixed rates are still available from as low as 3.5%, for most tracker mortgage customers this would keep their mortgage repayments at similar levels to today while capping any potential rises in future.

The catch is that these low fixed rates are only available for 5 years or less and so when you come off them you still could be vulnerable to higher ECB base rates.

If you really want certainty then you can fix for up to 30 years right now with some lenders.

This would cap your repayments for the rest of your mortgage.

If you go to a broker 15-30 year fixed mortgages are still available for around 4.2%.

Obviously if tracker mortgage rates go down below the rate you fix at you will miss out on any savings, but you have to trade this off against the certainty you will get by fixing.

For most people we think these long term fixed rates offer great value as you are paying a low premium for the certainty they provide by capping future repayments.

How Do I Fix My Tracker Mortgage? Tracker Mortgage Ireland 2024

There are two ways to fix

1. Fix with your current lender
2. Switch and fix with a new lender

The best fixed rates are those with the newest lenders in the market Avant Money and Haven. So the chances are if you fix with your current bank you will end up paying more than you should. The table below shows how the different lenders stack up.

Every 0.1% = €1,800 on the cost of the average mortgage over the full term, so not fixing onto the best rate could end up costing you tens of thousands in the long term.

So fixing with Bank of Ireland would cost you almost €25,000 more than if you were to fix with Avant Money.

That’s why we strongly advise that you talk to a broker to see what options you have.

Make sure the broker has access to all the lenders, will switch you for free and has experience of switching tracker mortgages. You can book a call with a broker now below.

We wouldn’t hang around having that first conversation with your broker for two reasons. 

1. It’s not certain how long these low long term fixed rates will be available.
2. There is a rush to fix nationwide which is causing backlogs right now. 

The good news is that you may be able to fix with your current lender while you are in the process of switching to a better fixed rate without being charged any breakage fees. This is because under EU law lenders can’t charge breakage fees when rates are on the rise.

This means you can ensure your rates don’t rise while you are waiting to complete your switch to a new lower cost lender.

In A Nutshell – Tracker Mortgage Ireland 2024

Although tracker mortgages have been fantastic value since 2008 as a variable mortgage they are exposed to rate rises. With ECB rate rises the average tracker rate is now 4.95%, much higher than current fixed rates.

These rates may go even higher and most analysts believe that tracker rates are unlikely to ever return to the rates seen since the 2008 crash.

That’s why fixing your rate to cap your repayments is the right option for most people and they should talk to a broker as soon as possible to get the best fixed rate, before fixed rates rise.

Next Steps

You can find out more about switching your mortgage here or with our mortgage switcher guide here.

You can get the full run down on mortgage switching solicitor and estate agent valuation costs here.

Frequently Asked Questions

Remortgage Ireland 2024. When I headed up mortgage products at PTSB, the low numbers of people remortgaging in Ireland was a shock. Despite huge savings we still have one of the lowest rates of remortgaging on the planet.

Remortgaging is simply taking out a new mortgage to pay down your old mortgage, either to get a lower rate (known as switching) or to release cash tied up in your home (know as top up or equity release).

Anybody who took out a mortgage after 2008 and is no longer on an introductory rate is likely to save around €25,000 by remortgaging. Over half of all mortgage holders, that’s over 450,000 households, will save at least €5K.

Why is the remortgaging rate so low? Well, most people don’t know how much they can save or how to remortgage. By the end of this article you will be one of thew few lucky ones able to take advantage of the record low interest rates for those remortgaging right now!

Would I save by remortgaging? – Remortgage Ireland 2024

How much would I save by remortgaging? – Remortgage Ireland 2024

How much hassle and cost is remortgaging? – Remortgage Ireland 2024

How do I remortgage? – Remortgage Ireland 2024

In a nutshell – Remortgage Ireland 2024

What next? – Remortgage Ireland 2024

Would I save by remortgaging? Remortgage Ireland 2024

If you are one of the 66%+ people who took out a mortgage after 2008 you should definitely look into remortgaging. This is because you’re probably on what lenders call a standard variable rate.

Irish Standard Variable Rates are some of the highest in Europe, at 4.2% [1]. Remortgaging to a new business rate will reduce your interest rate and remove the risk of further increases. 

If you are on a tracker mortgage, remortgaging might also make sense as ECB rates are at record highs and it may help you cap your repayments.

Even if you are on a fixed rate, if it’s less than 3 years you should probably consider remortgaging to get on a longer fixed term deal of 5 or more years to protect against upcoming variable and fixed rate increases.

How much would I save by remortgaging? Remortgage Ireland 2024

If you are in the majority of Irish mortgage holders (66%+) who would save big by remortgaging,  working out exactly how much you would save isn’t complicated. 

How much hassle and cost is it remortgaging? Remortgage Ireland 2024

Fortunately to remortgage in Ireland 2024 isn’t like applying for a mortgage the first time around. You can now do it totally online and for free. 

There are still some upfront costs you have to watch out for, you still need to get a solicitor to handle your house deeds and help you with the new mortgage agreement. You will also need to get your house valued by an estate agent to help set your mortgage rate.

The higher the value of the house the lower the loan to value rate, which means less risk for the bank, which means a lower rate for you.

All in switching costs usually come in at around €1,200 including the VAT, way lower than the potential savings.

Even better lenders, who are keen for new business, often pay for your solicitors fees and to get your home valued and for you to use an online switching platform like moneysherpa’s.  AIB and Haven offer over €1,500 towards the cost of switching. BoI, PTSB and EBS all offer 2%+ cash back which often works out at even more.

Plus, they will handle all the paperwork for you.    

How do I remortgage Ireland 2024?

If you use a service like moneysherpa’s it is pretty straight forward. The main thing you need to worry about is what to do with the money saved. Seriously, do you?

1. Pocket the savings

If you bought after 2008, have around €170,000 and 15 years left on your mortgage you should be looking to save over €180 a month in saved interest payments.

That would be €32,400 saved over the 15 years, without including cash back payments if you keep switching. This can make a really positive difference to the household budget and give you some welcome financial wriggle room.

2. Pay off the mortgage earlier

This is personal favourite as you effectively double down with your savings.

If you use the €180 a month you save to pay off your mortgage quicker, you can reduce your term by over 10% without paying anymore than you do today. Saving you another €4,307.

That’s €32,400 + €4,307 = €36,707 saved.

3. Release more cash

If the lower monthly repayments from remortgaging mean you can borrow more, known as topping up your mortgage you could free up the cash tied up in your home. Because it’s secured on your home, a mortgage is one of the cheapest ways of securing credit. This can be a great way to fund big once off investments, but be careful if you might struggle to repay the higher amount. 

In a nutshell – Remortgage Ireland 2024

Remortgaging is a great way to save. 1 in 5 people will save over €25,000 and over half will save over €5,000 by remortgaging in Ireland 2021.

Rates are better than ever and many mortgage brokers will handle the paperwork for you for free as they are paid by the lenders. Talking to a broker can help you work out the best option for your own circumstances, whether you are looking to simply save, fix your rate or free up cash. 

What next? – Remortgage Ireland 2024

To check out how much you would save or what rates are the best for you, use our handy remortgage calculator here.

You can find out more about switching costs here or switching mortgages here.

You can read more about mortgages or talk to one of our moneysherpa mortgage team here.

Don’t let mortgage switching costs put you off switching. Switching mortgage improves your financial shape more than anything else bar winning the Lotto. In fact, if you bought after 2008 you will probably save over €20,000 by switching to lower rates.

That said, there are some upfront costs you need to know factor in, read on to find out what they are, how you can cover them with cash back and why switching still makes loads of sense.

1. What are mortgage switching costs and switching mortgage legal fees?
2. How much are mortgage switching costs, switching mortgage legal fees and how much is it to switch?
3. Which banks cover mortgage switching costs, switching mortgage legal fees and what options are there?
4. Does it still make sense to switch after mortgage switching costs and switching mortgage legal fees?

What are mortgages switching costs and switching mortgage legal fees?

The good news is that switching your mortgage is much less stressful, easier and nowhere near as costly than buying a new home. That said there are still some solicitor and estate agent upfront mortgage switching costs.

Don’t panic though these costs are usually much less than the savings from switching and with some lenders switching mortgage legal fees and estate agent costs are fully covered with upfront payments.

There are no land registry or search fees involved with switching, but you will need a solicitor to do a bit of paperwork for you. Switching mortgage legal fees cover the solicitor costs to:

1. Request your house deeds on behalf of the new bank from your current bank
2. Review and advise you on the terms of the loan the new bank is offering you
3. Witness and process the loan agreement for the new bank

These steps give everyone involved in the switch peace of mind, the bank knows your ownership of the property is kosher and you understand the deal being offered to you by the bank.

As well as switching mortgage legal fees, the other mortgage switching cost is a valuation fee. An estate agent selected by the bank will also value your home, this allows the lender to make sure you are on the right mortgage rate.

How much are mortgage switching costs, switching mortgage legal fees and how much is it to switch?

So how much are the mortgage switching costs all in?

Switching mortgage legal fees range from about €1,500 to €2,000 including VAT at 23%. Typically solicitors in Dublin will be at the higher end of the range.

moneysherpa have agreed an all in switching price of €1,500 including VAT for customers switching with one of their mortgage sherpas [1]. As well as the VAT this all in fee includes

• Legal Fees
• Bank Fees
• Search/Land Fees
• Declaration Fees

The other mortgage switching cost is the valuation fee which is much less at around €150.

So if you shop around, your all in costs should come in well below the €2,000 mark inc VAT.

Which banks cover mortgage switching costs, switching mortgage legal fees and what options are there?

Many of the lenders don’t want these costs to put off potential switchers so pay an upfront cashback incentive. These incentives usually cover mortgage switching costs including mortgage legal fees with cash to spare.

Haven offer €1,500, €2,000 depending on the value of the mortgage to cover mortgage switching costs.

PTSB, EBS and BoI offer 2% and 3% of the mortgage loan as cashback. So on a typical loan size of €200,000 that’s €4,000 to €6,000 into your hand, covering your legal fee costs and then some.

These deals are really useful if you can’t afford to cover the mortgage switching costs, but would save by switching. They also are a great option if you are looking to switch multiple times, as under EU law lenders can’t stop you taking more than one cash back.

That said, if you can afford to pay the mortgage switching costs upfront and are looking to get on the best long term deal, you should us the APRC rate rather than the cash back deal to choose your mortgage provider.

In our latest mortgage market review the  Avant Money 7 year fixed rate product came out on top, despite having no cash back at all. The 7 year fixed rate is €6,775 cheaper than the best cash back product available on a typical loan size of €200,000.

That’s why you are often better to ignore cash back if you can and cover the mortgage switching costs yourself if you can afford it.

Does it still make sense to switch after mortgage switching costs and switching mortgage legal fees?

If you want to find out more about switching, you can read our ultimate guide to switching here or our review of the best mortgage deals here.