The findings have been made in research commissioned by the Banking and Payments Federation of Ireland (BPFI).

The European Central Bank (ECB) is widely expected to cut its key interest rates tomorrow, for the third time this year.

Research found that only about 28pc of mortgage customers have considered switching in the past year.

A similar percentage have looked for information on mortgage rates avail­able in the last six months.

Only 27pc of those surveyed by Coyne Research have compared mortgage products available in the market.

The findings also show that many customers are not aware of information that can be important when comparing rates.

About 28pc of mortgage customers say they do not know the current loan-to-value (LTV) ratio on their mortgage, while 25pc say they do not know their home’s building energy rating (Ber).

Mortgage holders can get lower rates if they have a low LTV and a Ber of at least B3 or higher.

Mortgage customers who switched between 2019 and 2022 saved an average of €2,000 a year

BPFI, in conjunction with its mortgage lending members – AIB, Avant Money, Bank of Ireland, EBS, Finance Ireland, Haven, ICS Mortgages and PTSB – is rolling out a nationwide information and awareness campaign.

The campaign aims to encourage mortgage customers to look at their switching options and outlines what to consider while shopping around, as well as the steps involved in getting “switcher-ready”.

There is a new online resource at InYourInterest.ie that provides a range of information for customers who want to learn more about mortgage switching and what it entails.

The banks said their research shows about one in five mortgage holders say they are on a variable rate mortgage; 11pc say they are due to come off a fixed rate in the next year; and 15pc are on trackers.

Brian Hayes, the BPFI chief executive, said mortgage customers who switched between 2019 and 2022 saved an average of €2,000 a year.

“Moreover, some customers may not be aware that since they first took out their mortgage, factors such as a decrease in the loan-to-value ratio of their property or an improved building energy rating could also impact the savings that can be made through switching,” he said.

Switching levels are well down from the peak in 2022, just before the ECB started pushing up interest rates. That process resulted in 10 rises in a row up to September last year.

Martina Hennessy, managing director of broker Doddl.ie, said 13,414 mortgages were switched in 2022, but added that this was down to 1,872 in the first half of this year.

Tomorrow, the ECB is expected to announce another 0.25 percentage point reduction in its main refinancing rate, which would take it down to 3.65pc.

Every 0.25 percentage-point cut in the ECB refinancing rate will shave €13 off monthly repayments for tracker holders. That equates to a saving of €156 over the course of a year.

Thousands of mortgage ‘prisoners’ are trapped with vulture funds

More ECB rate cuts will put lenders under pressure to reduce new fixed rates and variable rates.

Around 80,000 people on fixed rates are coming to the end of the term this year.

Meanwhile, Pepper Advantage, which handles mortgages bought out by vulture funds, is to write to some of its customers in the coming days informing them it is cutting their interest rates.

Thousands of mortgage ‘prisoners’ are trapped with vulture funds and are paying some of the highest interest rates in the market.

Some of them are paying rates of up to 9pc and 10pc.

Pepper Advantage said in a statement that it is to begin notifying over 9,000 residential mortgage customers of decreases in their variable mortgage rates over the coming days.

The credit servicer has around 17,000 customers on variable rates in total, and said it cut rates for others on variables “in due course”.



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