FAQs on redemptions and switching
Mortgage switching is the process of moving your home loan (mortgage) from one lender to another without moving house. For example, you may wish to switch mortgage to obtain a competitive interest rate, reduced term or avail of other incentives, that another lender may be offering.
Switching your mortgage requires credit and eligibility assessments by another potential lender. If you meet the requirements of another lender and receive a letter of offer, you can proceed with switching your mortgage.
Generally, customers need to be making full capital and interest repayments on their mortgage. In addition, customers must have no arrears on their mortgage or any other lending in the past two years. Other criteria may apply, and applications are assessed on a case-by-case basis in line with the individual lender credit policy.
It is recommended to always seek independent financial advice when considering mortgage options.
The Competition and Consumer Protection Commission (CCPC’) has publicly available mortgage comparison tools, available at www.ccpc.ie.
You can also see mortgage comparison tools at www.bonkers.ie and www.switcher.ie
It is recommended to continue to make mortgage repayments and review your financial circumstances at regular intervals. Contact Cabot Financial (Ireland) Ltd ‘Cabot’ immediately if you have any concerns or queries on your Mortgage or Mortgage repayments, our agents are here to help.
It is recommended to always seek independent financial advice or support from the Money Advice & Budgeting Service (MABS’) when considering your financial circumstances. Their website can be accessed here www.mabs.ie
Mortgage redemption is the complete and full repayment of your outstanding home loan.
Following the completion of a redemption, the legal charge over the property will be removed.
You do not need formal consent from Cabot to place your mortgaged property on the market, provided the sale proceeds will pay off your mortgage loan balance in full, including any costs that may be applicable to your loan, and you have only one property and one mortgage agreement with Cabot.
If the sale price will not cover the mortgage balance in full, or you have more than one property or more than one mortgage attached to the property, it is important to discuss options with Cabot before you put the property on the market.
Mortgage redemption occurs when you repay the full outstanding loan balance of your mortgage, including any interest, fees, or charges. This can happen at the end of your mortgage term, when moving home, remortgaging, or if you choose to pay off your mortgage early. Once redeemed, your mortgage account is closed, and the charge is removed by Cabot.
Follow these easy steps to redeem your mortgage:
- Request a Redemption Figure: Contact Cabot to obtain a mortgage redemption statement, which details the total outstanding loan amount required to pay off your mortgage along with the daily accrual rate of interest applicable.
- Review Fees and Charges: Understand the costs and fees associated with redeeming your mortgage in full. Such fees may include release of deeds on Accountable Trust Receipt (ATR’) and associated deed of discharge costs.
- Arrange Payment: Decide how you will pay the redemption figure. If remortgaging or moving, your solicitor usually handles the payment directly to Cabot via Electronic Funds Transfer. If you’re paying off the mortgage yourself, you can transfer the funds directly to Cabot. Contact us when you are ready to transfer and we will provide you with the appropriate bank details and the final amount you must pay to close your mortgage account.
- Payment Confirmation and Closure: Once Cabot receives the payment in full, they will provide confirmation and a closing statement showing the account has been closed. Cabot will also remove their legal charge on your property and where applicable, will release the Title Deeds to you or your nominated solicitor.
A mortgage redemption letter details the final outstanding amount due in order to close the mortgage account. A redemption statement can be obtained by contacting Cabot on 01-4649172 or by sending an email to [email protected]
A mortgage redemption letter is valid for the day it is generated. Cabot will provide a daily accrual rate of interest applicable until the end of the month calendar. Please note that should the interest rate change on the loan, a new redemption letter will need to be requested.
It is always advisable to engage the services of a solicitor or a legal professional when going through the redemption process. However, you can engage directly with Cabot if you are in a position to pay off your home loan early. Our agents can discuss relevant steps. A solicitor will be required if the redemption is based on a sale of the mortgaged property and to handle the release of the legal charge over the property.
Cabot does not charge early redemption or additional exit charges, but there may be administrative fees for release of title deeds on Accountable Trust Receipt (‘ATR’) and release of the legal charge over the mortgage property.
You will need to engage a solicitor to access title deeds. A solicitor can request title deeds by providing an Accountable Trust Receipt to Cabot. Your title deeds will be released to either you or your solicitor once your mortgage has been paid in full, any fees due have been paid and the redemption process has been completed.
An ATR is a formal legal undertaking given by a solicitor to your lender when seeking the deeds as part of the property sale process. The ATR ensures a solicitor agrees to either; return the deeds as provided or ensure the mortgage is redeemed.
We are required to provide the title deeds to your solicitor on ATR within 10 working days of receiving a valid request and fee (if applicable). A request is considered valid once we have received all required authorisations from all borrowers on the account along with the purpose of the request. Where we cannot provide the title deeds on ATR within 10 working days, we will explain in writing why and when we expect to provide them.
Title deeds can be sent to your solicitor by DX (document exchange used by solicitors) or by registered post.
Following the completion of a redemption and receipt of funds, the legal charge over the property will be removed and your mortgage will no longer be reported to the Central Credit Register.