The lenders all subscribe to these criteria as set out in this document:
How do I know if I can switch?
Mortgage lenders recognise that some customers may have had a difficult period at some time in the past, which resulted in their mortgage going into arrears or being on an alternative repayment arrangement (e.g., reduced repayments). However, lenders also understand that over time a customer’s financial circumstances may have changed. If your mortgage is not in arrears and you are making full capital and interest repayments, you may be eligible to switch to another lender.
To start the discussion on switching with your mortgage lender or broker, check the following:
• Full repayments: Are you repaying capital and interest on the full outstanding mortgage i.e., there is no split/warehoused element of the mortgage and the mortgage is fully up to date?
• Credit history: Is your credit history, i.e., Central Credit Register (CCR) record, showing a clean repayment track record, without arrears for at least the past two years?
• Sustainable income: Can you demonstrate that you have sustainable income which is adequate to repay the mortgage in full over the lifetime of the loan?
• Bank account performance: Do you have a satisfactory bank account performance i.e., no unpaid items such as direct debits or standing orders and all other loans/debts are up to date?
• Loan-to-value: Is the current Loan-to-value (LTV) of the mortgage less than 90%? i.e., the value of your mortgage cannot be more than 90% of the value of your home?
• Financial difficulty resolved: Have the circumstances that gave rise to any previous financial difficulty been resolved?
Once you meet these initial criteria, your application will be assessed on a case-by-case basis in line with the credit policy of the individual lender.* For more information on how to get a copy of your credit report from the Central Credit Register, please visit
www.centralcreditregister.ie.