‘An increasing number of homeowners are now coming to the realisation that they can switch their mortgage and save thousands of euros’
Mortgage rates have hit a rock bottom and the European Central Bank (ECB) have threatened that the only way is up – with an interest rate rise of 0.25% expected between October and the end of the year.
The small rise in rates equates to about a €40 monthly increase on a €300,000 mortgage, and will only impact those on a variable rate or tracker mortgage.
The real savings to be made are those coming to the end of their fixed rate term on a rate from three to five years ago. Even if you’re in the middle of a fixed contract, it could be worth paying the penalty to exit early in order to secure the cheapest rate on the market of 1.95%.
Speaking to RSVP Live, Joey Sheahan, Head of Credit, MyMortgages.ie and Author of The Mortgage Coach says: “We are lagging behind our European neighbours in terms of mortgage rates. European interest rates are at an all-time low, but Irish mortgage rates, while competitive in this market, are still significantly ahead.
“In terms of value, Ireland’s mortgage providers are competing more on more on fixed rates – with longer terms and lower pricing.
“Mortgage switching is really driving activity in the Irish mortgage market at the moment, which is encouraging to see, given that every mortgage holder should reassess their mortgage contract at least every three years – regardless of what rate you are on.
“An increasing number of homeowners are now coming to the realisation that they can switch their mortgage and save thousands of euros.
“A borrower could save €56,000 in interest over the life of their mortgage by reducing their rate from 2.95% to 1.95%. Based on €300,000 loan at 60% loan to value over 30 years”.
Source: https://www.rsvplive.ie/life/homeowners-can-now-save-56k-26188951
