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17th October 2024
10:27am BST
That’s according to research from the Banking & Payments Federation Ireland who found that only 28% of homeowners have considered switching this year.
As well as this, only 34% have actually looked at the mortgage products available to them in the past six months.
Speaking on Newstalk, Joe Lynam, CEO of BPFI said lots of people don’t realise they can save so much money by switching.
“There is an issue around inertia. People at one level, questioning whether they get any benefit from spending the time.
“You do need to sit down, realise what interest rate you’re on [and] look at other providers in the market to make sure you’re getting the best rate and to make sure that the products that you’re switching to, is of benefit too.”
Proof of savings was confirmed in an analysis published in April by the Central Bank of Ireland. It found that people who switched between 2019 and 2022 saved on average €2,000 a year.
Now, to help people who are considering switching the BPFI has launched a new website, inyourinterest.ie.
“Our responsibility as an industry - because we do support competition - [is to] get that message out there,” Mr Hayes said.
“Particularly, in an interest rate environment that seems to be changing at the moment.
“The cycle has turned; we’ve already seen two reductions from the European Central Bank this year.”
Mr Hayes went on to say that he believes further interest rate reductions will likely “continue over the next two years as inflation has been curtailed somewhat by the ECB.”
