On 17th October, with inflation continuing to ease, the ECB’s 0.25% rate cut came as no surprise and another reduction in December is now a strong possibility. Mortgage holders and applicants should welcome the news as it puts further downward pressure on rates.
To demonstrate the impact of the reduction, if someone has a mortgage value of €300,000, over 25 years, and is on an interest rate of 4pc before the rate change – their monthly repayments are €1,583.51. If their interest rate was to reduce by 0.25pc to 3.75pc, their monthly repayments would reduce to €1,542.39 per month. Compound those savings over months and years and it is significant.
My advice is that all mortgage holders should be looking at their mortgage agreements. The market is becoming more competitive, and even a small rate reduction can translate into substantial savings.
If people are wondering what to do, a simple first step would be to reach out to your current lender to see if they can offer a better rate. Equipped with this information you can then explore what other lenders are willing to offer.
Mortgage holders really have nothing to lose by checking, and the potential savings could be in the thousands. Speaking to a mortgage advisor can help you find the best solution for reducing your monthly payments, tailored to your individual circumstances. You can also call our office on +353214277037 or call me directly on +353868060601 at any time to explore your options.
