Imagine sitting at the kitchen table, bank letters scattered, staring at that steady line on your budget that’s been your mortgage payment for years. It seems fixed, almost immovable. But out of the blue, you hear a friend saved a chunk every month just by switching their mortgage. Are folks really doing this? Not only is it common, it can put hundreds a month back in your pocket. But what does the process actually look like? Here’s how remortgaging can play out, with real numbers and down-to-earth advice for when it makes sense and when it doesn’t.
What Does Remortgaging Mean?
Remortgaging isn’t just bankspeak for making your life difficult. In the simplest terms, it means taking out a new mortgage to pay off your old one, usually with a different lender or on different terms. People in Ireland and the UK use it as a tool to get lower rates, fund home improvements, or consolidate debt. With mortgage rates swinging like a yo-yo the last few years—jumping from all-time lows during the pandemic to more ‘reality check’ territory in early 2024—remortgaging has become a serious money saver for lots of households.
So, let’s break this down: say you bought your Dublin home in 2018, fixed in for five years at a 3.6% rate. Now it’s summer 2025, the fixed deal’s set to end. If you did nothing, you’d fall onto your lender’s ‘standard variable rate’—right now, that’s sitting at about 5.5%. But lenders are flirting with more attractive fixed offers again, some as low as 4.2% for good credit borrowers. That 1.3% difference might not sound life-changing, but hold up. For a €300,000 mortgage over 20 years, the numbers look like this:
| Mortgage Offer Type | Interest Rate | Monthly Repayment | Annual Savings |
|---|---|---|---|
| Remain on Standard Variable Rate | 5.5% | €2,073 | €0 |
| Switch to New Fixed Rate | 4.2% | €1,845 | €2,736 |
With a remortgage, you could save over €2,700 a year without changing anything else about your home or lifestyle. That’s the price of a summer family holiday, just for switching paperwork.
A Step-By-Step Example of Remortgaging
Let’s walk through a real-world scenario. Meet Sarah and David, a couple living in suburban Dublin. Their five-year €250,000 fixed deal at 3.2% is expiring. Their lender’s variable rate is a hefty 5.45%, but Sarah notices other banks advertising fixed rates around 4.1% for loyal, bill-paying borrowers. Here’s how their remortgage process unfolds:
- Step 1: Research and Compare
Sarah hits Irish comparison sites—Bonkers.ie, PriceSpy, or just scrolls her own bank’s options. She checks rate offers, reads fine print about early repayment or exit fees, and sees that by remortgaging to a 4.1% 3-year fixed, she could cut almost €150 a month from their payments. - Step 2: Check for Early Repayment Charges
Before applying, Sarah rings her current lender to ask about penalties. Their deal has three months left, so there’s a small charge (€400), but they’re still well into savings territory. - Step 3: Gather Documents
Banks in Ireland will want recent payslips, statements, ID, and proof of home insurance. Sarah downloads these, triple checks her “Approved for Credit” history, and applies online with Bank B. - Step 4: The Valuation
Bank B wants a fresh valuation. A registered valuer visits, confirms the house’s worth has gone up a bit (good news for their Loan-To-Value ratio). With their healthy equity, they’re eligible for even better deals Banks are pushing hard for solid switchers these days. Sometimes, they’ll even throw in €1,500 switcher cash to sweeten the move. - Step 5: Approval and Legal Bits
The new bank okays their application. The solicitor manages paperwork—no need to set foot in court, just show up and sign a few things. Sarah and David’s new mortgage pays off the old one directly, so they don’t handle any lump sums. - Step 6: Switch Complete
Their new monthly payments drop from €1,380 to €1,230. They’ll recoup their legal costs in less than a year. Not bad for a week’s admin and a few phone calls.
The biggest pain point Sarah had? Gathering paperwork—nothing more. The rest, honestly, was handled between the solicitors and the banks.
Why Do People Remortgage?
Most people jump into remortgaging to pay less each month, especially when fixed periods end. But money isn’t the only reason. Some folks remortgage to raise cash for home improvements—think attic conversions or fully insulated garden offices (yes, the pandemic made those a thing). Banks may let you pull out up to 80% of your home’s updated value, as long as your income and credit stack up.
Another common reason? Debt consolidation. If you’ve got a stack of pricey credit cards or personal loans, a remortgage can clear balances at a far lower rate. There’s a catch, though. Stretching short-term debts out over 20+ years usually ends up costing more in interest, so always run the numbers carefully.
One thing more people are watching now—especially after last year’s bank collapses in the US and banking jitters across Europe—is lender security. When you remortgage, you’re trusting a new financial partner for decades, so it pays to check customer reviews, service ratings, and financial stability before signing anything.
Don’t forget, the Central Bank of Ireland enforces strict Loan-To-Value (LTV) and Loan-To-Income (LTI) limits. Most buyers can’t borrow more than four times their income, and new loans above 80% of property value are tough to swing. If your home’s value has soared, you’ll fall into a lower LTV band and unlock far better rates—one survey found buyers with 50% equity were getting almost 1% cheaper deals on average in the first half of 2025.
Tips to Make Remortgaging Worthwhile
No one wants a paperwork headache for nothing, right? If you’re considering a remortgage, here’s what helps it pay off:
- Start shopping early. Most fixed deals in Ireland and the UK require at least three months’ notice to avoid penalties. Set a calendar alert for six months before your fixed-rate ends so you’re not scrambling.
- Check your credit score. Better deals go to clean payers. You can request your report for free at least once a year. Pep up your score by paying down debts and fixing any errors in advance.
- Work out all costs. Between legal and valuation fees (€1,200–€2,000 is common in Ireland), switching isn’t free. Ask your new lender about cashback offers—they’re much more common now to woo switchers.
- Don’t just focus on rate. The right deal isn’t always the lowest number. Watch early repayment charges, portability (in case you move within a few years), and flexibility on overpayments to help pay off your mortgage faster.
- Avoid remortgaging for short-term cash needs if you can. Spreading a holiday or small renovation over decades is rarely wise. But remortgaging for big strategic improvements—think energy retrofits or adding floor space—may actually boost your property value and future-proof your home.
If you’re worried about rising rates, locking into a new fixed now—even if it’s not the all-time lowest—can offer huge peace of mind. Loads of people I know in Dublin have done this in 2024 and 2025, just to steady their budgets with all the cost-of-living craziness. And yes, even Graham, my ever-risk-averse husband, was convinced by the numbers after seeing our friends shave €170 off monthly payments.
One last tip: don’t get seduced by cashback alone. Compare the total cost over the loan period, including fees and every clause. The right remortgage can change your financial story for years—let the banks compete for your loyalty, not the other way around.