Irish Times: Fixed-rate mortgages: Shop around because there are deals to be had

Rates have continued to fall, so anyone paying more than 2.2% should have a rethink writes Joanne Hunt in the Irish Times.

Nobody wants to pay more for anything than they need to. Yet, if you are not considering the latest fixed-rate mortgage rates, that’s exactly what you might be doing.
Whether you are a first-time buyer, you are on a variable rate or you’ve already fixed, there are deals to be had. With fixed rates now ranging from 2.2 per cent, anyone paying more needs to ask themselves, and their lender: why?

…

Yet, if you are not considering the latest fixed-rate mortgage rates, that’s exactly … Some are switching lender to get a lower rate. … says Joey Sheahan of mymortgages.ie and author of The Mortgage Coach.

Read the full article here:

https://www.irishtimes.com/business/personal-finance/fixed-rate-mortgages-shop-around-because-there-are-deals-to-be-had-1.4202285?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Fpersonal-finance%2Ffixed-rate-mortgages-shop-around-because-there-are-deals-to-be-had-1.4202285

Irish homeowners are overpaying by an average of €3,480 on yearly mortgage repayments. Due to a large number of homeowners failing to change lenders to get a better deal.                                                                                                                                       A mortgage price war with AIB is raging. After rival banks KBC and Ulster bank also revealed reductions.                                                                                                                       Joey Sheahan expects things to heat up this year.

You can read more from the article here – https://www.thesun.ie/news/5132690/irish-homeowners-mortgage-repayments/

Watch the excerpt by clicking here

AIB is cutting its fixed mortgage rates in a move that could save homeowners a massive €1,152 a year, based on a mortgage of €270,000 over 25 years.

The bank is reducing its three-year and five-year fixed mortgage rates for the second time in a year from 2.5% to 2.45%, with immediate effect. AIB also reduced its ‘Green’ five-year fixed rate mortgage from 2.5% to 2.45%.

AIB customers, who are currently on their variable mortgage rate of 3.15%, could save €96 a month (€1,152 a year) if they switch to the Green five-year rate, based on a mortgage of €270,000 over 25 years.

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Figures from the BPFI say that in the final quarter of 2018 there were 1,684 re-mortgage/switching loans, and experts say more needs to be done to let homeowners know that they could be eligible for savings and that it is not as “arduous, complicated or intimidating” process as they may expect.

“The numbers stack up – switching could save an average mortgage holder anywhere in the region of €275 monthly or €3,300 annually or €99,000 over the life of a fairly average sized €280,000 mortgage over 30 years, with a LTV of less than 50%, by reducing the variable interest rate from 4.5% to 2.75%,” explained Joey Sheahan, Head of Credit at MyMortgages.ie.

“We need to do more to broadcast to every mortgage holder in the country that they could be in line for savings, and to explain to them that the process need not be arduous, complicated or intimidating as they might expect.”

Read the full article on RSVP here –
https://www.rsvplive.ie/news/irish-news/homeowners-could-save-more-1k-21571842

MORTGAGE rates in this country have fallen below 3pc for the first time in years.

But there is scope for much deeper cuts, mortgage experts said.

New figures show home buyers in this country with new mortgage agreements are still paying double the average rate in the rest of the Eurozone despite the fall in rates.

This is costing the typical new buyer €2,000 more a year than their European counterpart.

The average rate paid on a new mortgage in this country was 2.88pc in December, the Central Bank said.

This was down 13 basis points on the same month in the previous year.

However, the average rate being paid in the Eurozone is half of the one in this country, at 1.37pc.

Ireland is the second most expensive country in the Eurozone for mortgage rates after Greece.

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Rates are coming down due to more competition between lenders, according to Joey Sheahan, head of credit of MyMortgages.ie and author of ‘The Mortgage Coach’.

“But there is still a gulf between what our lenders are charging and what our European counterparts are offering their mortgage holders.

“We would hope that this gulf will continue to narrow over the coming years. We believe that there is scope for a cut of up to 0.25pc on some fixed rate terms,” he said.

Daragh Cassidy of price comparison site Bonkers.ie said the average first-time buyer mortgage in Ireland is around €225,000.

This means someone borrowing this amount over 30 years is paying almost €172 extra a month or over €2,058 a year compared to our European neighbours.

“That’s money that could be put to far better use,” he said.

He advised potential first-time buyers who are at the start of the mortgage journey to do their research.

“While the average new mortgage rate in Ireland is still close to 3pc, there are now rates as low as 2.25pc on offer,” he said.

Read the full article by Charlie Weston here –
https://www.independent.ie/business/personal-finance/mortgage-rates-drop-below-3pc-central-bank-38957118.html

If you qualify for the HTB scheme, you can claim up to 5pc of the purchase price of the house as a tax rebate

Your Questions

Q: My partner and I are renting a three-bed house in Galway for €1,300. We have just learned that we will be having our first baby at the end of the year and we would absolutely love to have our own home by then. We both have secure incomes as young teachers of €35,000, but we are really struggling to get a deposit together. The property we have our eye on is €270,000 and in a new development near where we already live. We have €5,000, and gifts from our parents will bring that up to €15,000. But that is still not enough. Is there any help out there for us?

A: One thing you may not have considered is Revenue’s Help-to-Buy (HTB) scheme. Because you want to buy a new-build, you may well be eligible, according to Joey Sheahan, head of credit with MyMortgages.ie and author of the newly released ‘The Mortgage Coach’.

To give you an idea of where you stand, you will need a total of around €32,400 to purchase the property.

This is made up as follows: 10pc, or €27,000, as a deposit, plus 1pc stamp duty of €2,700, and 1pc, or €2,700, toward legal costs.

Read the full article by Charlie Weston here –
https://www.independent.ie/business/personal-finance/we-need-to-buy-a-home-with-a-baby-on-the-way-is-there-help-available-38958512.html

Mortgage experts say homeowners could save up to €100,000 by switching to the lowest rates.

With specialists predicting the competition will begin to “heat up”, AIB has become the latest bank to announce a cut in its fixed loans.

It was claimed 220,000 borrowers currently on standard variable rates of up to 4.5% could benefit.

AIB announced yesterday it is cutting its three and five-year fixed rates from 2.85% to 2.55% and its green five-year fixed rate from 2.5% to 2.45%. This is its second mortgage rate reduction in less than 12 months.

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Meanwhile, MyMortgages.ie spokesman Joey Sheahan said he expects competition to “heat up”.

He added: “Existing and prospective mortgage holders should take note – there is great value on fixed rates.

“If you are applying for a mortgage, then you absolutely need to look at what all lenders are offering.

“And if you are already tied into a mortgage contract, then you should look at what your switching options are.”

Read the full article here –
https://www.dublinlive.ie/news/business/homeowners-could-save-up-100000-17808147

House prices have increased by more than 80% from their lowest point in 2013.

The latest Residential Property Price Index, issued by the Central Statistics Office (CSO), shows that prices are continuing to increase, albeit at a slower rate than this time last year.

In 2019, property prices increased by 0.9%. In 2018, the rate of increase was 6.3%.

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Joey Sheahan, head of credit at MyMortgages.ie, said, “Prices are stabilising but many first-time buyers are still struggling.

“There can be no doubt that thousands have stable incomes and can afford mortgage repayments, but need help to get that initial leg up on the property ladder.”

Brokers Ireland echoed this sentiment, noting that first-time buyers are experiencing “continuing difficulty” in accessing the market.

Read the full article here –
https://www.irishexaminer.com/breakingnews/ireland/house-prices-have-increased-over-80-from-lowest-point-in-2013-981573.html

Competition is heating up every year.                                                                                       Experts say  that homeowners could save up €100,000 on their mortgage by switching to lower rates.                                                                                                              AIB have announced that they are cutting their fixed rates. This is the second reduction in 12 months.                                                                                                               10 Years could be cut off a mortgage if the right changes are made.

Read more here –
https://www.breakingnews.ie/ireland/house-prices-have-increased-over-80-from-lowest-point-in-2013-981573.html

Says Colin Gleeson in the Irish Times, where Joey Sheahan, Head of Credit, at MyMortgages.ie is quoted, with some predictions for 2020.

Read the full article here – https://www.irishtimes.com/business/financial-services/extra-795m-loaned-for-family-homes-in-third-quarter-of-2019-1.4129569

Thinking of getting a mortgage in 2020? Or switching for lower rates? Here’s what our customer John Fuller thought of the service at MyMortgages.ie

https://youtu.be/rEenQEW8h2s

To bring their total remuneration package in line with private sector employees, in a large multi-national or with public service employees, Ireland’s self-employed have a lot of work to do. Attendees at MyMortgages.ie & Compass Private Wealth‘s holistic Financial Planning Seminar heard how it is 100% incumbent on Ireland’s small business owners to ensure they are adequately provided for both during their working life and their retirement.

The Seminar, held at the Clayton Hotel, was attended by key members of the region’s business and property industry. Speaking at the event Jonathan Sheahan, Managing Director of Compass Private Wealth, “We estimate that those owning and running SMEs in Ireland need to earn between 25%-30% gross more p.a. to come in line with some of their PAYE private and public sector counterparts. But on the flipside, self-employed have opportunities which are not available to PAYE employees, to structure their financial planning in such a way that they can really benefit from the provisions and reliefs that exist for self-employed when it comes to tax, earnings and retirement planning”.

Also speaking at the event was Jim Power, Irish Economist who said that with house price growth decelerating and huge upward pressure on private rents, combined with low interest rates, it is cheaper to buy now than rent. Joey Sheahan, Head of Credit at www.MyMortgages.ie concluded proceedings, noting that with house prices levelling off and vendors being more realistic and considering offers below guide price, there are significant opportunities for those looking to buy and we have seen a marked increase in clients agreeing purchases in Q4 2019.

If you would like to discuss mortgages, pensions, or financial planning, get in touch with [email protected].