A new survey reveals that a shortage of larger family homes is driving a growing trend towards renovation over relocation.
The latest Doddl.ie Mortgage Switching Index shows that top-up mortgages totalled €128m in the third quarter of this year, a 26% on the same time last year.
It also reveals that €460m worth of mortgage switching took place in the three months from July to September, a jump of 58% on last year.
Doddl.ie said the average value of a switcher mortgage has climbed by €43,415 in the past year to €294,494, while the value of top-up mortgages now stands at €135,021.
It also noted that with fewer homes for sale, mover mortgage activity is close to its lowest in a decade.
Doddl.ie CEO Martina Hennessy said that many top-up and switcher mortgages are going towards home upgrades, but she warned that people who choose to stick with their existing lender without reviewing market rates risk losing out on substantial long-term savings.
"People are realising they can refinance, free up funds for renovations, and lower their repayments, all at once," Martina Hennessy said.
"But the biggest mistake we see is borrowers taking a top-up with their existing lender because they think switching will be too much hassle," she said.
"In reality, the process is exactly the same - you have an application, a valuation and a solicitor. Costs are incurred regardless so it makes sense to use the opportunity to review what's available from all ten lenders in the market and potentially save tens of thousands of euro over time," she added.
She said that seven lenders now offer switcher cashback of up to 2%. At an average switching value of €294,494, this incentive equates to €5,889 - enough to cover all legal and valuation fees and still leave a surplus, she added.
The ECB held rates steady at its September meeting, with policymakers giving a consistent message that the easing cycle is over for now. As rates stabilise, the third quarter of this year saw the strongest quarter for switching since the first quarter of 2023.
Doddl.ie also recorded a 166% year-on-year increase in switching by value among its own clients.
It said that with the average mortgage drawdown now €356,185, homeowners switching could save €638 a month (€7,663 per year), up €3,570 annually compared with five years ago, according to the switching index.
