If you have an FHS equity facility you can switch between mortgage providers, however different rules apply depending on whether you are switching to a Participating or non-Participating Lender
Switching mortgage providers is when you take out a new mortgage on a property you already own with a new lender to replace your existing mortgage.
You can switch your mortgage to another Participating Lender without having to redeem your FHS equity facility.
If you switch your mortgage to a non-Participating Lender, you must redeem the equity share in full including any accrued service charges.
You must notify the FHS of your intention to switch your mortgage by completing the Mortgage Switching Notification form which can be accessed through the FHS customer portal and providing us with supporting documentation (if required).
Switching rules at a glance
- If switching to a Participating Lender, there is no requirement to redeem (buy back) the equity share
- If switching to a non-Participating Lender, there is a requirement to redeem (buy back) the equity share in full including any accrued service charges
- If you borrow more money against your property (this is known as a mortgage top up) as part of the switching process you must retain at least 10% equity in your home post top up
Participating Lender and non-Participating Lender
Participating Lenders in the FHS are Allied Irish Banks plc (including AIB, Haven Mortgages, and EBS), Bank of Ireland Group plc, and permanent tsb plc. All other mortgage lenders are classed as non-Participating Lenders in the FHS.
Mortgage Switching Notification Process
- Login to your FHS customer portal
- Complete
Mortgage Switching Notification form- Download from customer portal
- Tell us what Lender you are switching to
- Tell us if you are increasing your mortgage
- Upload (or you can send to us by post)
Form and Supporting Documentation- Annual Mortgage Statement
- Property Valuation (if available)
If you are switching to...
- A Participating Lender with no top up
Receive Notification Acknowledgement
Switch notification complete - A Participating Lender with a top up
FHS will need to confirm it has no objection to the top up before you can complete the switch
See Topping Up Your Mortgage process - A Non-Participating Lender
You must redeem your equity facility plus accrued service charges in full
See Redemption/Buying Back Your Equity Share process
WARNING: We strongly recommend that you seek advice from an independent financial adviser and legal adviser if applying for this product.
WARNING: Property prices can go up and down. As the equity facility is linked to the value of your home, any change in property prices will affect any partial or final redemption amounts. If property prices increase/decrease over time, the percentage equity you have to redeem will remain the same but the € amount will increase/decrease. See examples in the case of a price increase below:
Example 1: Home Purchase (private development)
Customer purchases a property for €250,000, availing of €25,000 from the First Home Scheme (FHS) which means the FHS has a 10% FHS equity share in your home.
Sometime in the future you decide to buy out the FHS equity share. The home is now valued at €350,000. As the FHS equity share is unchanged at 10%, you will now need €35,000 plus any accrued service charges payable, to redeem the FHS equity share in the home.
Example 2: Self-build (own site)
Customer owns a site valued at €100,000 and builds a house on that site at a cost of €300,000.
Customer avails of €30,000 from the First Home Scheme (FHS) which means the FHS has a 10% FHS equity share in your house built on the site.
Sometime in the future you decide to buy out the FHS equity share. The property, including both house and original site is now valued at €500,000.
At the time of build, the site value represented 25% of the total value of the home (i.e.€100,000) and this 25% will now be discounted from the current value before calculating the FHS Equity amount to be redeemed (€500,000 less current site value of €125,000, equals €375,000). As the FHS equity share is unchanged at 10%, you will now need €37,500 (10% of €375,000) plus any accrued service charges payable, to redeem the FHS equity share in the home.
WARNING: The First Home Scheme is not regulated by the Central Bank of Ireland and the equity product is not governed by the Central Bank and its statutory codes of conduct and/or other regulations to include the Consumer Protection Code. However, this does not affect your rights under consumer law.
