The True Cost of Staying on the Wrong Rate
9 April 2026 · Mary Molloy Solicitors
Switching costs are visible, itemised and paid once. The cost of not switching is invisible, unitemised and paid every month — which is precisely why inertia wins so often. Pricing your own inaction is the cure.
Small gaps, large balances, long terms
On a substantial balance over a long remaining term, even a modest rate gap compounds into a sum that would be unthinkable as a single invoice. Nobody would write one cheque for the amount they quietly overpay across a decade — but paid monthly, it goes unnoticed. Run your own numbers in our savings calculator: balance, term, current rate, best available rate. The total-term figure is usually the persuasive one.
Why the visible costs dominate decisions
Behavioural economics has a name for most of what happens here: loss aversion on the fees you can see, present bias against paperwork today for savings spread over years, and status quo bias dressed up as loyalty. Lenders' pricing models understand this perfectly — back-book rates rely on customers not looking.
Making the decision mechanical
Strip the psychology out with a standing rule: once a year, get your current lender's best offer in writing, compare the market against it, and switch when the break-even lands inside your realistic horizon. The legal process is our job, the offers change annually, and the review costs an evening. The wrong rate, left alone, costs considerably more.
Read more in our main guide: Remortgage Costs and Fees in Ireland · or back to the blog.
This page contains general information about Irish law and practice. It is not legal advice, it may not reflect your circumstances, and reading it does not create a solicitor–client relationship with Mary Molloy Solicitors. We do not advise on taxation; please speak to your accountant or Revenue. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.