The rush to switch mortgage providers, owing to rising interest rates, has created a backlog of up to 14 months.

The European Central Bank (ECB) has warned that more hikes are coming down the line.

Karl Deeter is CEO of onlineapplication.com.

He told Pat Kenny things in Ireland are pretty good compared to some other countries.

“We had great rates in Ireland for a long time, we still have great rates in Ireland.

“But with rates rising people are saying ‘I actually have to do something’.

“They’re all running for the same exit at the same time, and that is causing delays.”

But he said there is some good news: “Our rates are lower than mortgage rates in Germany at the moment, for instance.

“There are still plenty of rates below 2% with several lenders if you have a good energy rating on your house.

“There’s even rates close to 2% without an energy rating restriction.

“The thing that people need to understand is depending on the lender that you go to you might experience delays.

“Depending on the way that you go to that lender, you might experience delays.

“So if you go direct into a lender instead of through a broker, you might just be stuck in a big queue.

“Brokers know ways to get people ahead, or who’s doing the best time delivery on lending at any given time too.

He said: “The big message here is to make sure you get impartial advice”.

‘Better off doing nothing’

Karl said while it’s easier to move within an existing lender, you mightn’t be getting the best deal.

“When you are with a lender they don’t really reward loyalty – so existing business rates… aren’t always as good as the new business rates – or perhaps as the competitors rates.

“So that’s why people sometimes make the decision to move, or some lenders will give you a cash lump.

“But definitely the fastest is just to stay with whoever your loan is with.

“Ask them can you move on to a fixed rate, they’ll give you the choices, and then compare those choices against the choices in the market.

“And you can decide for yourself what’s the best choice.”

He added that the timing is crucial here.

“If you do get caught up in one of these delays… your loan rate will be whatever your rate is on the day you draw down.

“So if [ECB chief] Christine Lagarde says ‘Rates went up’ and those rates get passed on, then you’ll get the higher rate.”

But he has this caveat for mortgage holders: “Really what you’re doing is you’re trying to make an estimation: What will my cost be if I stay, how much better off am I if I go?

“And if those two sums don’t add up, then you’re better off doing nothing”.

Hear Karl’s full advice below:

Main image: The European Central Bank (ECB) is seen in Frankfurt, Germany in July 2017. Picture by: Noppasin Wongchum / Alamy Stock Photo