Making Cents: 20-year fixed rate ‘a big day for Irish mortgage market’

Making Cents: 20-year fixed rate ‘a big day for Irish mortgage market’

Posted on 18May

The maximum term of 20 years is twice as long as currently available to Irish mortgage customers.

While home-buying has been making headlines for all the wrong reasons of late, there has been some positive news for potential borrowers, with a number of new rates and long-term fixed rate options announced last week.

Finance Ireland – company which first entered the residential mortgage market in 2018 – launched a range of long dated fixed rate mortgages for owner occupiers.

The maximum term of 20 years is twice as long as currently available to Irish mortgage customers. It will mean that many home buyers may be able to have a fixed rate for the full term of their mortgage.

Finance Ireland CEO Billy Kane says the long dated fixed rates will allow customers to benefit from the ’historically low interest rates now available’.

“These fixed terms combined with flexible features provide exceptional certainty for customers and are a stated priority of the Government (ref: Programme for Government),” Mr Kane said.

Indeed the lender is partially backed by the Government, with the Ireland Strategic Investment Fund (ISIF) owning 30% of the business.

“We only distribute our mortgages through regulated intermediaries which ensures that all of our customers have advice about the suitability of any product to their specific needs,” Mr Kane added.

The fixed rate terms launched by Finance Ireland are for periods of 10, 15 and 20 years. The fixed rates range from 2.40% to 2.99% (annual percentage rate of charge (APRC): 2.58% – 3.06%) depending on Loan to Value (LTV) and the fixed term period. A 20 year fixed rate mortgage for up to 90% of the value of the home is priced at 2.99% (APRC: 3.06%).

Mortgage expert Martina Hennessy, Managing Director of doddl.ie, said the provider’s new offerings were structured to appease traditional concerns about long-term fixed rate products.

“In addressing four keys ways why long -term fixed rates may appear unattractive to Irish consumers, Finance Ireland is introducing a unique offering to the Irish market,” Ms Hennessy said.

The rate will reduce over time, you can overpay up to 10% of your outstanding balance without charges, the rate is portable and there is a capped break penalty.

“Their 15 and 20 year fixed rates are products that we see elsewhere in the eurozone, where rates are lower.

“Uniquely, with this fixed-rate product, if your loan to value drops then your rate will fall over time, assuming your value holds or increases.” The fixed rate will decrease as the loan is paid down versus the property value. Finance Ireland have also said LTV (loan-to-value) driven reductions to a customer’s fixed rate will be downward only – rates will never increase even were there to be a deterioration in house value versus loan outstanding.” Ms Hennesy also sees the extra repayment option and portability as key features.

“You can pay up to 10% of your outstanding mortgage balance in every year of your fixed-rate term, without early repayment charges,” she said. “Crucially, if you stay with Finance Ireland and you move house, you can transfer the rate on your current mortgage to your new home without incurring a penalty.

“They have also included a maximum early repayment charge which caps exposure to potential large break penalties.” Joey Sheahan, Head of Credit, MyMortgages.ie described the options as a ‘big day for the Irish mortgage market’.

“This news from Finance Ireland is really likely to shake things up – both in terms of how mortgage holders approach their choice of term and rates, and in the fact that if the demand for these products are strong, other lenders will make moves to bring similar offerings on stream – if they are not already in the process of doing so,” he said.

The Finance Ireland news was followed by an announcement from Avant Money, which launched Ireland’s lowest four and ten-year fixed rate mortgages and reduced rates on its existing seven-year fixed rate product. The new ten-year fixed rates will start from 2.1%, with four-year fixed rates starting from 1.95%. These rate reductions from Avant, which has caused a major stir since entering the Irish market last year, have been described by the Association of Irish Mortgage Advisors as ‘very good news for mortgage customers’.

These announcements won’t solve the massive issues of cost and supply in the Irish housing market but it does mean more choice available to those in a position to take out a mortgage.

Source: https://www.irishexaminer.com/lifestyle/healthandwellbeing/arid-40291547.html

 


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New mortgage option set to shake up the market for homebuyers

Posted on 11May

A new mortgage option is set to shake up the market here as it offers Ireland’s first 20-year fixed-rate mortgage, providing a massive boost for the struggling property market.

Finance Ireland is launching a range of competitive long-term fixed-rate loans with rates for a 20- year fixed term mortgage ranging from 2.4% to 2.99% for up to 90% loan-to-value mortgages.

And best of all, the non-bank lender is backed by taxpayer cash, as the State-owned Strategic Investment Fund has a 30% stake in Finance Ireland.

The welcome move will pile pressure on banks to offer more competitive mortgage rates, something that is seen as a major boost for homebuyers.

The new cut-price rates would see homeowner repayments of just €1,052 a month on a €270,000 30-year mortgage with the first 20 years fixed at 2.99%.

Finance Minister Paschal Donohoe was not involved in the decision to back the deal but a spokesman said yesterday: ‘The Department [of Finance] welcomes the announcement which provides a new product for customers and will help to drive competition in the mortgage market.’

It came as President Michael D. Higgins yesterday became the latest to comment on the country’s housing crisis, saying that ‘radical solutions’ are ‘urgently needed given the magnitude of a housing crisis that is not abating’.

Reports published this week highlight a chronic shortage of properties that have resulted in soaring house prices while rents continue to skyrocket.

The historical new low 20-year fixed-term home loan was hailed by housing campaigners last night as welcome news for families struggling to get on the property ladder, saying other banks are sure to follow suit.

David Hall, of the Irish Mortgage Holders Organisation, said: ‘It’s good news and gives some people certainty for 20 years.’

The announcement was a ‘good news day for new and existing mortgage holders’, Association of Irish Mortgage Advisors chairperson Trevor Grant said.

Currently, the longest fixed-rate mortgage available in the Irish market is seven years – with a handful of providers offering a ten-year term but capped at an LTV of 80%. The Finance Ireland fixed rates are available for up to 90% LTV mortgages.

Rachel McGovern, director of financial services at Brokers Ireland, said: ‘That they are only now entering the Irish market indicates just how staid, unimaginative and, above all, non-consumer-friendly the Irish mortgage market has been. In fact, ten-year mortgages have only been introduced in recent years.’

Joey Sheahan, head of credit at MyMortgages.ie, said: ‘This news from Finance Ireland is really likely to shake things up – both in terms of how mortgage-holders approach their choice of term and rates, and in the fact that if the demand for these products are strong, other lenders will make moves to bring similar offerings on stream.’

The new lender is offering European-style home loans fixed for 20 years from as low as 2.6%.

Its arrival is sure to be welcomed by borrowers after recent announcements by KBC and Ulster Bank that they are pulling out of the Irish banking market.

Finance Ireland chief Billy Kane said: ‘I’ve been involved with the Irish mortgage market for over 30 years and I believe that this is one of the most significant innovations made here in that time.

‘We’ve been working on the introduction of longer dated fixed-rates for some time now in order to allow customers benefit from the historically low interest rates now available. These fixed terms, combined with flexible features, provide exceptional certainty for customers and are a stated priority of the Government.

‘We only distribute our mortgages through regulated intermediaries which ensures that all of our customers have advice about the suitability of any product to their specific needs.’

A spokesman for the Ireland Strategic Investment Fund (ISIF) said: ‘All ISIF investments are made on a commercial basis, in line with its double bottom line mandate of generating a commercial return and supporting economic activity and employment in Ireland. The announcement of new mortgage products today is a result of a commercial decision by the management of Finance Ireland, in which ISIF holds a minority shareholding.’

The maximum term of 20 years is twice as long as currently on offer in the mortgage market and will mean some home-buyers may be able to have a fixed rate for the full term of their mortgage.

The fixed-rate terms launched yesterday are for periods of ten, 15 and 20 years.

The fixed rates range from 2.40% to 2.99% depending on loan-to-value and the fixed-term period.

A 20-year fixed-rate mortgage for up to 90% of the value of the home is priced at just 2.99%.

Customers can also move their mortgage to a new property during the term of the fixed rate without incurring any penalty, can pay back a lump sum of up to 10% of their outstanding balance, without penalty, in each year of the fixed term.

Trevor Grant, of the Association of Irish Mortgage Advisors, said: ‘Given the recent negative news regarding KBC and Ulster Bank, this is a good news day for new and existing mortgage-holders and for competition in the market.’

Source: https://extra.ie/2021/05/14/business/property/new-mortgage-option


KBC Mortgage Holders Trigger Surge in Mortgage Switching Enquiries

Posted on 19Apr

On Friday 16th April, it was announced the KBC were looking to sell their Irish business to Bank of Ireland. The understandable uncertainty has led to many of their mortgage holders looking at moving their mortgage to another lender for a greater sense of security. We have received an influx of calls from mortgage holders with KBC, asking whether or not they should be looking to move their mortgage to a different bank and what their options are.

This process will take some time to complete and KBC continues to have a duty of care to current customers and obligations to fulfil in that regard, so mortgage holders should not be worried or anxious.

That said, it would be prudent to look at this time as a chance to review your current position mortgage-wise – primarily what rate you are paying, and how this compares to what is currently being offered in the market. Although KBC’s departure from the Irish market is not a positive development in the Irish banking sector – particularly, from both a competition and an employment perspective, the uncertainty surrounding KBC’s future could at least turn out to be a beneficial wake up call to mortgage holders who are paying rates in excess of what they could get elsewhere. 

The arrival of Avant Money to the market has seen many mortgage holders with mature mortgages, and/or a strong loan to value, switch to exceptional market-beating rates.

We are advising any KBC customer that is on a rate greater than 2.3% to review their options. But this doesn’t apply to KBC mortgage holders alone – anyone paying more than this, regardless of which lender they are with, should be talking to an expert to see if they can get a better deal either with their current lender or with a different provider. And don’t let whether you are on a fixed or variable rate stop you – you may well still have options to move.

If you would like to complete an initial assessment to see what potential savings you could make by switching, click here for the form and we will review and respond to you directly. 

Should I switch?

Just like you shop around for cheaper or better car insurance or electricity provider, it’s worth reviewing your mortgage every few years to see if you can make savings. 

What is Switching?

Switching is the term used to describe the process of changing mortgage provider. This is usually done to get a lower interest rate on your mortgage from a new lender with a view to saving money on interest. 

Some people go through the entire term of their mortgage without considering whether their lender is offering them the best rate. However, it is prudent to review the terms of your mortgage on a regular basis – perhaps as part of a wider financial ‘health-check’. You don’t need to switch every year, but it’s a financially savvy move to take the time to consider the current market, the value of your property, and the interest rates on offer from all lenders on an ongoing basis.

My Neighbour is Doing it – Can I?

The answer is, most likely, yes. I estimate that one in every three mortgage holders would save by switching. (I am not including European Central Bank related tracker interest rates in these figures as they currently offer low interest rates given that the ECB base rate is 0%, meaning a typical tracker mortgage interest rate is approximately 1% and such mortgages have not been available in Ireland since 2008.)  

If you have been on the same rate for more than three years, or you are coming to the end of a fixed rate period, then you should certainly review your options. 

Regardless of whether you are a variable or a fixed rate mortgage holder, you could potentially save tens of thousands of euros over the remaining term. 

The Myths and Misconceptions

–       ‘I can’t switch if I’m on a fixed rate.’ Not true. You can break a fixed rate contract. We see many banks currently do not have a breakage fee however you may be charged a breakage fee by your lender, but the savings you make upon switching, plus, potentially, any cashback offer from a new lender, could more than cover the charges. In addition, due to the current low cost of funds available for banks, many don’t impose a fee for exiting a fixed rate contract. You will need to call your bank to check this, however.

Looking at Mick and Fiona for example, they have a home loan with €300,000 outstanding. They are currently on a fixed rate of 3.6% for the next two years with 28 years left on their mortgage term. They contact their bank to check the early fixed rate breakage fee and are advised that the fee is €1,050. They contact a mortgage broker who advises them that if they switch lender, they can obtain a two-year fixed rate of 2.3%, which will reduce their monthly payment from €1,418 to €1,211 which is a saving of €207 monthly or €2,484 annually or €4,968 over the two-year period. So, in this example, even though Mick and Fiona are liable to pay a breakage fee of €1,050, it is worthwhile as they will save €4,968 over the next two years alone.  

Mary & John  
Before SwitchAfter Switch 
Fixed 2 Yr interest rate 3.6%Fixed 2 Yr interest rate 2.3% 
Monthly repayment €1,418Monthly repayment €1,211 
 Total savings over term €4,968* 
*savings excluding breakage fee   

–       ‘I need to have a LTV of less than 80% on my home.’ Again, not true. While some lenders will offer you a better rate according to the amount of equity you have built up, you can still switch if your LTV is between 80% to 90%.

–       ‘Switching is a long and difficult process.’ Not true. Switching can be straightforward with the help of an expert and some banks require less documentation for switchers than for a new application.

–       ‘I’ll just end up spending any savings made on the legal costs of conveyancing’. (Conveyance is the legal term for processing the paperwork involved in buying and selling a property and transferring the deeds of ownership). Not true. You will know in advance, once you or your broker runs the numbers whether the savings made will outweigh any ancillary costs that may be incurred. If you stay with the same lender but move to a different rate, then you may not incur any additional costs.

Cash Back on Switching

The impact can be significant. If we look at Rua and Kerry’s experience, they took a €400,000 mortgage over 35 years at a three-year fixed interest rate of 3.6%. The interest rate they selected at the time of draw down was reasonably competitive and they also received upfront cashback from their lender. However, their rate is now changing to a higher variable rate of 4.2%. Their payments will be going to €1,805 monthly. They have tried to negotiate a lower variable rate with their current lender without success so they decided to switch to a lower variable rate of 2.95% with another lender which will reduce their monthly payments to €1,534. This will save them €268 monthly or €3,212 annually or €102,912 over the remaining 32 years of their mortgage. In addition, they receive €2,000 from the new lender, which covers the legal fees involved in switching.    

Ruth & Ken  
Before SwitchAfter Switch 
Fixed 3 Yr interest rate 3.6%Variable interest rate 2.95% 
Monthly repayment €1,802Monthly repayment €1,534 
 Total savings over term €102,912 

What Will I Need?

If you decide to proceed with switching, you will need to go through the mortgage application process and submit your documentation. This varies from lender to lender. Typically, you will require the following documents:

–       Passport Identification.

–       One recent payslip, Employment Detail Summary and salary certificate.

–       Three/six months recent current account statements – depends on lender requirement.

–       3 Most recent credit card statements. 

–       Most recent mortgage statement.

–       Relevant application form and bank declaration.

Where Do I Start?

–       Contact your existing lender to confirm your rate of interest, balance outstanding and term remaining on the mortgage. 

–       If you are on a fixed rate, ask your lender what fee, if any, they charge for breaking the mortgage contract.

–       Ask your current lender to review your interest rate and enquire about variable and fixed-rate options for an existing customer.  

–       Contact a mortgage broker and ask them to compare your existing mortgage terms to what’s on the market. (Technically, you can do this research yourself, but it will mean numerous calls to multiple lenders so in reality it’s probably not the easiest route for you to take.) The more equity you have in your home, the better the new terms you’ll be offered, but you can switch even if your loan is 90% of your value.

–       Your broker can check what incentives other lenders are offering to switchers. The ‘incentive’ usually covers the legal costs, as well as any possible breakage fee, although this would need to be worked out on a case-by-case basis. 

–       Assess the best value option for you. A broker can run calculations on the interest rates you have been offered to see the potential savings you can make. This should not be a complex process. But there is market research to be done and there are lots of forms to be filled and boxes to be ticked. A broker will do all the legwork, calculations and communicate with lenders on your behalf and explain all of your options. 

–       You will need to decide whether to stick with your current lender or move to a different one. Moving to a different provider will mean going through the mortgage approval process again. Changing lenders can be relatively simple if you have expert help. 

–       Ultimately you need to ask yourself a question: why would I stick with a lender that is not giving me the best value?

Take your time, weigh up all your options and seek expert advice to help you decide if switching is the best course of action. 

How Much Can I Save?

Switching to a lower interest rate can save you a considerable amount of money in the long term depending on the rate and capital amount. 

Let me give you an example of savings on an interest rate reduction of 1.6%. By switching from a 4.2% rate to 2.6%, a mortgage holder with a loan of €350,000 over 30 years can save over €300 per month, €3,732 per year or €14,897 over 4 years. 

Before SwitchAfter Switch 
Variable interest rate 4.2%Variable interest rate 2.6% 
 Monthly repayment €1,712 Monthly repayment €1,401 
 Total savings over 4 years €14,897 

In summary, it costs mortgage holders absolutely nothing to explore what ‘switching’ their mortgage can yield them in interest savings. I have sought to challenge and address any lack of knowledge or awareness by outlining the process and the financial benefit to be gained from taking this step. 

People can often be put off by their first mortgage experience, which for many is stressful. However, the second time round should be a lot more straight-forward. Yes, of course there will be forms to fill, but the rewards for this bit of administration can be in the region of thousands and life changing as a result.


Ulster Bank Mortgage Holders Trigger Surge in Mortgage Switching Enquiries

Posted on 16Feb

On Friday 19th February, we received clarity on a firm decision that Ulster Bank will undertake a phased withdrawal from the Irish market. 

The understandable uncertainty has led to many of their mortgage holders looking at moving their mortgage to another lender for a greater sense of security. We have received an influx of calls from mortgage holders with Ulster Bank, asking whether or not they should be looking to move their mortgage to a different bank and what their options are.

This process will take a number of years to complete and Ulster Bank continues to have a duty of care to current customers and obligations to fulfil in that regard, so mortgage holders should not be worried or anxious.

That said, it would be prudent to look at this time as a chance to review your current position mortgage-wise – primarily what rate you are paying, and how this compares to what is currently being offered in the market. Although Ulster Bank’s departure from the Irish market is not a positive development in the Irish banking sector – particularly, from both a competition and an employment perspective, the uncertainty surrounding Ulster Bank’s future could at least turn out to be a beneficial wake up call to mortgage holders who are paying rates in excess of what they could get elsewhere. 

The arrival of Avant Money to the market, has seen many mortgage holders with mature mortgages, and/or a strong loan to value, switch to exceptional market-beating rates.

We are advising any Ulster Bank customer that is on a rate greater than 2.3% to review their options. But this doesn’t apply to Ulster Bank mortgage holders alone – anyone paying more than this, regardless of which lender they are with, should be talking to an expert to see if they can get a better deal either with their current lender or with a different provider. And don’t let whether you are on a fixed or variable rate stop you – you may well still have options to move.

If you would like to complete an initial assessment to see what potential savings you could make by switching, click here for the form and we will review and respond to you directly. 

Should I switch?

Just like you shop around for cheaper or better car insurance or electricity provider, it’s worth reviewing your mortgage every few years to see if you can make savings. 

What is Switching?

Switching is the term used to describe the process of changing mortgage provider. This is usually done to get a lower interest rate on your mortgage from a new lender with a view to saving money on interest. 

Some people go through the entire term of their mortgage without considering whether their lender is offering them the best rate. However, it is prudent to review the terms of your mortgage on a regular basis – perhaps as part of a wider financial ‘health-check’. You don’t need to switch every year, but it’s a financially savvy move to take the time to consider the current market, the value of your property, and the interest rates on offer from all lenders on an ongoing basis.

My Neighbour is Doing it – Can I?

The answer is, most likely, yes. I estimate that one in every three mortgage holders would save by switching. (I am not including European Central Bank related tracker interest rates in these figures as they currently offer low interest rates given that the ECB base rate is 0%, meaning a typical tracker mortgage interest rate is approximately 1% and such mortgages have not been available in Ireland since 2008.)  

If you have been on the same rate for more than three years, or you are coming to the end of a fixed rate period, then you should certainly review your options. 

Regardless of whether you are a variable or a fixed rate mortgage holder, you could potentially save tens of thousands of euros over the remaining term. 

The Myths and Misconceptions

–       ‘I can’t switch if I’m on a fixed rate.’ Not true. You can break a fixed rate contract. We see many banks currently do not have a breakage fee however you may be charged a breakage fee by your lender, but the savings you make upon switching, plus, potentially, any cashback offer from a new lender, could more than cover the charges. In addition, due to the current low cost of funds available for banks, many don’t impose a fee for exiting a fixed rate contract. You will need to call your bank to check this, however.

Looking at Mick and Fiona for example, they have a home loan with €300,000 outstanding. They are currently on a fixed rate of 3.6% for the next two years with 28 years left on their mortgage term. They contact their bank to check the early fixed rate breakage fee and are advised that the fee is €1,050. They contact a mortgage broker who advises them that if they switch lender, they can obtain a two-year fixed rate of 2.3%, which will reduce their monthly payment from €1,418 to €1,211 which is a saving of €207 monthly or €2,484 annually or €4,968 over the two-year period. So, in this example, even though Mick and Fiona are liable to pay a breakage fee of €1,050, it is worthwhile as they will save €4,968 over the next two years alone.  

Mick & Fiona  
Before SwitchAfter Switch 
Fixed 2 Yr interest rate 3.6%Fixed 2 Yr interest rate 2.3% 
Monthly repayment €1,418Monthly repayment €1,211 
 Total savings over term €4,968* 
*savings excluding breakage fee   

–       ‘I need to have a LTV of less than 80% on my home.’ Again, not true. While some lenders will offer you a better rate according to the amount of equity you have built up, you can still switch if your LTV is between 80% to 90%.

–       ‘Switching is a long and difficult process.’ Not true. Switching can be straightforward with the help of an expert and some banks require less documentation for switchers than for a new application.

–       ‘I’ll just end up spending any savings made on the legal costs of conveyancing’. (Conveyance is the legal term for processing the paperwork involved in buying and selling a property and transferring the deeds of ownership). Not true. You will know in advance, once you or your broker runs the numbers whether the savings made will outweigh any ancillary costs that may be incurred. If you stay with the same lender but move to a different rate, then you may not incur any additional costs.

Cash Back on Switching

The impact can be significant. If we look at Rua and Kerry’s experience, they took a €400,000 mortgage over 35 years at a three-year fixed interest rate of 3.6%. The interest rate they selected at the time of draw down was reasonably competitive and they also received upfront cashback from their lender. However, their rate is now changing to a higher variable rate of 4.2%. Their payments will be going to €1,805 monthly. They have tried to negotiate a lower variable rate with their current lender without success so they decided to switch to a lower variable rate of 2.95% with another lender which will reduce their monthly payments to €1,534. This will save them €268 monthly or €3,212 annually or €102,912 over the remaining 32 years of their mortgage. In addition, they receive €2,000 from the new lender, which covers the legal fees involved in switching.    

Rua & Kerry  
Before SwitchAfter Switch 
Fixed 3 Yr interest rate 3.6%Variable interest rate 2.95% 
Monthly repayment €1,802Monthly repayment €1,534 
 Total savings over term €102,912 

What Will I Need?

If you decide to proceed with switching, you will need to go through the mortgage application process and submit your documentation. This varies from lender to lender. Typically, you will require the following documents:

–       Passport Identification.

–       One recent payslip, Employment Detail Summary and salary certificate.

–       Three/six months recent current account statements – depends on lender requirement.

–       3 Most recent credit card statements. 

–       Most recent mortgage statement.

–       Relevant application form and bank declaration.

Where Do I Start?

–       Contact your existing lender to confirm your rate of interest, balance outstanding and term remaining on the mortgage. 

–       If you are on a fixed rate, ask your lender what fee, if any, they charge for breaking the mortgage contract.

–       Ask your current lender to review your interest rate and enquire about variable and fixed-rate options for an existing customer.  

–       Contact a mortgage broker and ask them to compare your existing mortgage terms to what’s on the market. (Technically, you can do this research yourself, but it will mean numerous calls to multiple lenders so in reality it’s probably not the easiest route for you to take.) The more equity you have in your home, the better the new terms you’ll be offered, but you can switch even if your loan is 90% of your value.

–       Your broker can check what incentives other lenders are offering to switchers. The ‘incentive’ usually covers the legal costs, as well as any possible breakage fee, although this would need to be worked out on a case-by-case basis. 

–       Assess the best value option for you. A broker can run calculations on the interest rates you have been offered to see the potential savings you can make. This should not be a complex process. But there is market research to be done and there are lots of forms to be filled and boxes to be ticked. A broker will do all the legwork, calculations and communicate with lenders on your behalf and explain all of your options. 

–       You will need to decide whether to stick with your current lender or move to a different one. Moving to a different provider will mean going through the mortgage approval process again. Changing lenders can be relatively simple if you have expert help. 

–       Ultimately you need to ask yourself a question: why would I stick with a lender that is not giving me the best value?

Take your time, weigh up all your options and seek expert advice to help you decide if switching is the best course of action. 

How Much Can I Save?

Switching to a lower interest rate can save you a considerable amount of money in the long term depending on the rate and capital amount. 

Let me give you an example of savings on an interest rate reduction of 1.6%. By switching from a 4.2% rate to 2.6%, a mortgage holder with a loan of €350,000 over 30 years can save over €300 per month, €3,732 per year or €14,897 over 4 years. 

Before SwitchAfter Switch 
Variable interest rate 4.2%Variable interest rate 2.6% 
 Monthly repayment €1,712 Monthly repayment €1,401 
 Total savings over 4 years €14,897 

In summary, it costs mortgage holders absolutely nothing to explore what ‘switching’ their mortgage can yield them in interest savings. I have sought to challenge and address any lack of knowledge or awareness by outlining the process and the financial benefit to be gained from taking this step. 

People can often be put off by their first mortgage experience, which for many is stressful. However, the second time round should be a lot more straight-forward. Yes, of course there will be forms to fill, but the rewards for this bit of administration can be in the region of thousands and life changing as a result.


Are you unable to Secure Mortgage Approval Due To Rising Prices in Dublin?

Posted on 27Jan

Are you unable to Secure Mortgage Approval Due To Rising Prices in Dublin?

A joint income of almost €100,000 is now needed just to buy the cheapest new apartment in the greater Dublin area.

MyMortgages has exemptions available on a case-by-case basis and are currently securing approval for many people in your situation.

If you would like to talk to Joey about your particular situation complete the form below:

What the media are saying….


Income of €100,000 needed for cheapest Dublin apartments

A joint income of almost €100,000 is now needed just to buy the cheapest new apartment in the greater Dublin area.

This is because it is not financially viable for developers to build apartments to sell to ordinary people.

They can only be built to sell if the apartments are constructed in more expensive areas where higher sales prices are achievable, a new report found.

Read more on this article in The Independent here.


MyMortgages.ie is a Proud Partner of Avant Money

Posted on 14Sep

Avant Money (formerly known as Avantcard) launched today and confirmed its new mortgage products are now available to Irish customers, with fixed rate mortgages starting from 1.95%, by far the lowest rate in the market today.

The company has been providing credit cards and personal loans to Irish consumers for over twenty years. Avant Money is owned by Spanish banking group Bankinter, which also has operations in Portugal and Luxembourg.

We, at MyMortgages.ie, are proud to announce that we are one of Avant Money’s partners and we are here to guide and advise switchers, movers and first-time buyers on the range of these new products.

Joey Sheahan, Head of Credit, MyMortgages.ie and author of The Mortgage Coach says:

Avant Money’s entry into the Irish market is the best news for Irish mortgage holders. We have long seen European rates well below 2% compared to closer to 3% for Irish mortgage holders, and now, for the first time since before 2008, rates below 2% are available to homeowners in Ireland. It’s a once in a decade or maybe even 2 decade opportunity where a new lender enters the Irish market and reduces interest rates to this extent. We are delighted to be one of Avant Money’s partners and our advice to mortgage holders is now is the time to review their current mortgage, even if they have done so recently. A mortgage holder with €300,000 outstanding with 32 years remaining and Loan to Value of below 60% can save €158 monthly or €60,000 over the term of mortgage based on reducing interest rate from 2.95% to 1.95%”.

If you would like to talk to Joey about your particular situation complete the form below:


We’re hiring!

Posted on 28Jul

Would you like to work with MyMortgages.ie? We have 2 new positions open within our busy team.  Due to the continued growth of our business, we’re looking for Mortgage Administrators to join MyMortgages.ie, one of Ireland’s most active Mortgage Brokers. The positions will be based in our Cork office.

The role of Mortgage Administrator involves:

Management of client applications for residential and residential investment mortgages.

Communication between lending institutions, valuers, clients.

General Administration as required i.e. filing, computer inputting, file upkeep, phone/reception etc.

Facilitating client and key advisor account requirements (solicitors, auctioneers, accountants, etc.).

Submit applications here 

View the full job spec here


Are you unable to Secure Mortgage Approval Due To Covid 19?

Posted on 24Jun
 
MyMortgages are currently securing deals for people in your situation. 
 
If you would like to speak with Joey regarding your situation, fill out the form below: 


Irish Independent: Your Questions: Our son is off to college and we can’t get a grant. Can we borrow?

Posted on 29Jul

Charlie Weston 27.07.19

Read More


Irish Indepedent: “Your Questions: How much can we borrow to allow us buy a bigger home?”

Posted on 16Apr

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