Switching from mortgages sometimes offers major benefits: a lower mortgage interest rate, better conditions or the option to adjust your mortgage. But it is important that you calculate well whether switching is beneficial for you and that you arrange everything properly. That is why you will find a checklist for transferring your mortgage in this article.
Mortgage transfer – Mortgage interest
First of all, you investigate what the current mortgage interest rate is. Is the mortgage interest rate low now, but do you still pay a high interest rate? Then switching often provides benefits. But which bank has the greatest benefit? Here you can compare the mortgage rates of all banks. With this you calculate how much you will pay in the coming years in interest when you switch. You then place this next to the amount that you pay if you do not switch. How much do you save?
Switching from mortgage – Conditions
In addition to the mortgage interest, the conditions also play an important role. What does a bank do if you are temporarily unable to pay? How much can you possibly pay off without penalty? You may come across a few conditions with your own mortgage that you have difficulty with. So make sure you only switch to a mortgage with good conditions.
Mortgage transfer at another bank – Fine
If you retake your mortgage, you are in fact redeeming your mortgage debt early. The bank misses out on income from the interest that it did expect. That is why some banks charge a fine if you switch to another bank. An exemption does apply, for example for 10 or 20 percent of the outstanding mortgage debt. The amount of the fine depends on your situation, so always ask the bank where you can count on.
Switching from mortgage – Other costs
In addition to the penalty interest that you sometimes pay, the mandatory mortgage advice costs money and you pay closing costs for the new mortgage. These differ per bank, so include them in the comparison. You must also register the mortgage deed again in the registers of the Land Registry. For this you pay around 400 to 1,000 euros. Each notary uses different rates, so ask a different notary for a quote.
Transfer mortgage to another bank – Choose the right time
For the cost it is important that you choose the right time to transfer your mortgage. Of course you prefer to pay the lowest possible mortgage interest . With a low interest rate, switching is therefore more attractive than when the interest is high. In addition, in some situations you never pay a penalty interest for converting your mortgage, namely:
- if you pay variable interest;
- when you move;
- when the fixed-interest period expires;
- if the current mortgage interest rate at your mortgage provider is higher than the interest you pay.
Switch from mortgage – Choose the right advisor
Finally, you make a choice for a good mortgage adviser. You can choose an independent adviser or an adviser from a certain bank. An independent adviser costs more, but this independent advice often results in greater savings than if you opt for a bank adviser. The independent advisor looks at all the mortgages for you, so you can then take out the mortgage that is really the most beneficial and attractive for you. Finally, the adviser helps you switch mortgage.