Latest House price data
Ireland’s average house price in the 12 months to August was €320,000.
The Residential Property Price Index (RPPI) shows house prices have increased by 0.9% over the last 12 months. Whilst house prices dropped in Dublin by 1.9%, elsewhere in Ireland prices rose by 3.1%.
The cheapest place to buy a house is Longford, with a median price of €159,750, while the most expensive place is Dún Laoghaire-Rathdown at €634,919.
Source: Residential Property Price Index, CSO
What is a home mover mortgage?
Home mover mortgages are designed for people moving from one property to another.
Whether you’re upsizing due to additional family members or downsizing when your children leave home, moving to a new county or to the next street - a home mover mortgage will meet your needs.
There are two options available when you’re moving home:
Mortgage porting: If your mortgage is portable, you can transfer it to your new property in a process known as porting. You can apply to ‘top up’ if you need to borrow more or redeem part of your mortgage if needing less.
Home mover mortgage: This is a new mortgage with the same or a different lender. A new mortgage could work for you if you’re buying a more expensive property or better rates are on offer. Property valuation fees and solicitor fees may apply.
What second-time buyers need to know
You need to know several lending rules and processes before applying for a home mover mortgage.
Loan to value (LTV) limit
Home movers and second-time buyers require a 10% deposit.
The maximum LTV is 90% which is the percentage of the property’s value you can borrow, although lenders may go above this limit in some instances.
Loan to income (LTI) limit
You can borrow up to 3.5 times your gross salary, but if you’re getting a joint mortgage, it’s 3.5 times your combined salary.
The Central Bank allows 15% of second-time buyer mortgages to be offered above the LTI limit of 3.5 times gross salary, so lenders may be able to increase this limit under certain circumstances. You’ll need to be a low-risk borrower to be considered, requiring a good credit rating and income level.
Go to mortgage calculators
How much is stamp duty in Ireland?
Stamp Duty is a tax you have to pay when you transfer ownership of a property and other assets in Ireland. It’s due when a Deed of Transfer or Deed of Conveyance is required to transfer ownership.
When you’re buying a new home, stamp duty rates depend on the value of the property. The current rates for residential homes in Ireland are:
- 1% of the purchase price up to €1m
- 2% of anything above €1m
How much does it cost to move home?
This depends on the value of your current and new home but in addition to product fees, there are several other fees to pay, including:
- Valuation fee, this covers a report that’s given to your lender
- Survey fee to check the structural condition of the property before you buy
- Solicitor fees for managing the process and legally transferring the property into your name
Stamp duty, this is a type of tax you must pay
- Early redemption charge may apply if you leave a fixed rate mortgage before the term ends. You could save money by porting your mortgage over to the new property.
- Removal costs or temporary storage fees for your furniture, appliances, and other belongings
Total up and factor in all these potential extra costs before you commit to a new property and make your move.
The home mover mortgage process
Here are the key steps for getting a home mover mortgage and moving to a new home.
- Firstly, get your home valued and work out how much you can borrow and the deposit required for your new property.
- Compare mortgage deals using our comparison tool or find a mortgage broker who can access a panel of lenders. Once you’ve found a mortgage that’s right for you, apply for an approval in principle with the lender.
- Finally, find a property that’s within budget, make an offer and obtain a solicitor to carry out the legal proceedings. Once your mortgage application is confirmed, you’ll need to sign your mortgage offer letter.
How to choose the best home mover mortgage
To find the right mortgage for you, you need to consider several things before you apply.
Check the LTV matches your eligibility: Comparing products with the right maximum loan to value will narrow your search.
Choose a fixed or variable rate: If you’ve increased your mortgage, repayments will be higher, so you may want a fixed rate mortgage with set payments. If rates are low, you may opt for a variable rate mortgage which lets you switch, redeem and overpay your mortgage for free.
Compare interest rates: The lower the rate, the less interest you’ll pay, making your repayments cheaper and reduce the cost of your mortgage overall.
Consider the fixed rate term: If you choose a fixed rate mortgage, you’ll need to decide how long to fix. The best option depends on your future plans and mortgage market conditions.
Can I keep my tracker mortgage if I move home?
If you have a tracker mortgage and don’t want to give it up, you may be able to continue on that type of mortgage when you move home.
Although trackers are unavailable to new customers, some lenders offer follow-on tracker mortgages for existing tracker customers.
This means staying with the same lender and the same or similar product terms as before.
Check with your lender whether they offer a tracker mortgage for home movers.
Can I move house if I have a fixed rate mortgage?
It is possible to move if you have a fixed rate mortgage, but you may have to pay an early redemption charge (ERC).
To avoid paying fees, you may be able to:
- Port your mortgage over to the new property
- Wait until the end of your fixed term, when you’re free to redeem your mortgage without penalty
Porting over your mortgage involves staying with the same lender and reapplying for a mortgage with them. This may mean missing out on a better interest rate with another lender.
If your circumstances have changed since you last applied or wish to borrow more, you may not be eligible to port your mortgage over.
You’ll need to weigh your options and the costs involved. For example, paying an ERC and switching your mortgage to a better rate or porting your mortgage over and paying a higher interest rate.
Can I move home with negative equity?
If you owe more on your mortgage than the property is worth, this may prevent you from moving.
However, some lenders may let you transfer the negative equity to your new mortgage if you meet other criteria, e.g. a good repayment record for the past two years. Speak to your lender, a mortgage broker (mortgage credit intermediary), or a financial advisor for advice.