How much does it cost to switch your mortgage, and is it worth it?

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Short answer

The legal cost of a straightforward switch with Jacob Law LLP is a fixed €1,650 in total: a professional fee of €895 plus VAT and €549.15 of outlays including the registration of the new mortgage. Where a case is more complex, the firm says what it will cost before the work starts. A standard switch takes about six weeks and can be done entirely remotely. Whether it is worth it comes down to the interest you save over the time you plan to stay against the switching costs, any break fee on a fixed rate, and any cashback your new lender offers.

Professional fee€895
VAT at 23%€205.85
Outlays€549.15
Total fixed fee€1,650

There is no property-value banding: the fee is the same whatever the size of the loan. It covers a straightforward switch. Where a case is more involved, a separation or a change of ownership alongside the switch for example, the firm quotes that extra work before any of it starts, so the figure you agree is still the figure you pay. The outlays cover taking up the title deeds, the fee to vacate the existing mortgage, commencement and closing searches, the commissioner and swearing fee, updating the folios, registering the new charge and the vacate of the old one, and returning the deeds to your new lender.

What else the switch can cost

  • A break funding fee from your current lender if you are on a fixed rate. Ask for the redemption figure and whether a break fee applies before deciding.
  • A certificate of compliance if the house has been extended. Extensions up to 40 square metres are usually exempt from planning permission, but the new lender still needs evidence that the works comply, which means an architect’s or engineer’s certificate at a typical cost of around €500 plus VAT.
  • Valuation and any arrangement costs set by the new lender.

Is it worth it?

Switching pays when the interest you save over the years you expect to keep the mortgage is larger than the costs of switching: the legal fee above, any break fee, and any certificate or valuation costs. Two things tilt the sum. The first is cashback: if your new lender offers it, it is usually released after your first mortgage payment and can cover a large part of the switching costs. The second is time: the longer you keep the new rate, the more a small rate difference is worth. Your broker or lender can show the saving on your figures; the legal side is a known, fixed number.

How long, and how

A standard switch takes about six weeks; more complex cases take longer. The whole switch can be handled by phone, email, post and video call, with 24/7 access to your case through the online client portal. The first step is your broker or lender, to see what rates are available; the solicitor is engaged as soon as you know you are going ahead.

Frequently asked questions

When are the fees paid?

Fees are payable before completion of the legal transaction, by same-day money transfer. If you decide not to proceed with the switch there is no charge.

Can the fixed fee change?

For a straightforward switch it does not. This is the base quote for a standard mortgage switch; if complications arise, such as a separation or divorce, they are explained and costed in advance and you approve before the work proceeds.

What is a redemption figure?

A letter from your current lender showing the amount needed to repay your existing loan in full on a set date, with daily interest added until it is paid. Your solicitor obtains it as part of the switch.