To fix or not to fix?

Irish mortgage lenders continue to increase mortgage interest rates. They argue that although ECB and Euribor rates remain low, that the Irish banks have to pay a lot more than these rates to borrow money. This money must earn a profit, so higher rates must be charged to the retail customer.

Whether these statements by the banks are completely true or not doesn’t really matter from the consumer viewpoint. As ECB interest rates will eventually rise, there will be further rises ahead. Have a look at the fixed rates available from your existing mortgage lender and perhaps other lenders. There may be incentives to switch lender, but do the sums. What are the redemption penalties if you need to opt out in the future? Will you have to repay the “free” legal fees offer?

Discuss the matter with your specialist mortgage broker if you have one. It’s not always easy to see the wood from the trees.

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Helping people to cut costs and get better value - Good Financial Housekeeping
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