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Switch your mortgage to get ahead of rising costs now

There’s no hiding the very real impact the rocketing rate of inflation is having on living costs right now.

According to EY Ireland Chief Economist Neil Young, inflation grew three times faster in the final three months of 2021 that in the previous two years.[1]

He reported that energy prices rose by more than 27%, transport by 18% and rent and mortgages by 6.6%.

In particular, mortgages in Ireland have been recognised as being the most expensive in the Eurozone and one of the key factors contributing to the high cost of living.[2]

Approximately 200,000 mortgage holders on standard variable rates will soon pay more for their mortgage when the ECB rate changes at an expected increase of a quarter of a percent.[3] 

ICA Mortgages already moved on Monday (21 March) to increase its three- and five-year fixed-rate products by 0.2-0.45%, moving from its previously low rate of 1.95% has now jumped 2.25% for a three-year loan, and 2.4% for a five-year one.

Other lenders may soon follow suit, however that is unlikely until after the ECB has raised rates. Tracker mortgages will move automatically with any ECB interest rate change.

However, there is good news that can make a difference if you are feeling the pinch.

Switching your mortgage to a different provider can help you save considerably on your repayments.

The lender you signed up with doesn’t have to be your mortgage lender for life, and certainly shouldn’t be if they are costing you money.

In fact, there are a range of options available to homeowners with new providers entering the market in the last number of years.

For example, Avant Money offers some of the most competitive rates on the market right now, with rates starting at 1.95% APRC (Annual Percentage Rate of Charge) for a three year fixed term rate.

Avant Money’s long-term fixed rate product starts at just 2.25% and can be fixed for a term between 15 and 30 years.

Not only does this give homeowners peace-of-mind for their entire mortgage term, they can even move house without paying a penalty.

Avant Money entered the Irish market in September 2020. It is a consumer finance company based in Leitrim, owned by the Spanish banking group Bankinter and regulated and authorised by the Central Bank of Ireland.

Hennelly Finance is part of an exclusive network of advisors that can offer homeowners access to some of the lowest interest rates available in Ireland today from Avant Money and other competitive providers.

Our qualified advisors can walk you through the process of switching and whether it is right for you.

The Hennelly Finance team has more than 20 years’ experience providing clients in the west with personal financial advice tailored to their specific circumstances and helping them find a mortgage that meets their needs. To find out how you can save money on your mortgage, or if you are in the market to buy a new home, get in touch with us today for access to the best rate deals in the market, you won’t be sorry!


[1] Consumer: the rising cost of living 16 February 2022 Free (farmersjournal.ie)

[2] Ireland is back on top of the mortgage ‘league of shame’ 9 February 2022 (Independent.ie)

[3] Mortgage rates are at rock bottom – so expect your costs to rise, homeowners warned – Independent.ie

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H91 AF1W

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Hennelly Financial Services Ltd. t/a Hennelly Finance & Health Insurance Shop is regulated by the Central Bank of Ireland. Directors H. Hennelly, R. Hennelly. Registered in Ireland, Company Reg No: 32727.
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