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Fixed versus variable rate

Our consultant will advise you in regard to choosing your mortgage rate. The principle matter to consider will choosing the term of your mortgage and whether to choose a fixed or variable rate mortgage. In addition we will need to consider all discounted rate offerings available from lenders. Most lenders offer special one year rates to new applicants.

Our advice will focus on your long term needs and the expected value over time of the mortgage product compared to other lenders.

Fixed Rate

If you want certainty into the future in regard to your mortgage repayments you can choose to fix your repayments.This certainty comes at a price which is the difference between a variable rate repayment and a fixed rate repayment.

Your mortgage advisor will advise you of the alternatives and the cost of the various options. Much depends on your risk profile, the level of the mortgage and your income.

Future mortgage rates are uncertain and certainly today rates are extremely low and serious consideration should be given to fixed rate options.

You can set your rate for a fixed number of years on a pre-defined term length. For example your rate may be 4.5% for 3 years. After this time the rate will be variable.

Should you wish to cancel your mortgage agreement (for the purposes of moving house for example) then you may incurr a penalty for breaking a fixed rate contract.

An advantage of a fixed rate mortgage is that you are able to budget for the next x amount of years and your repayments will not increase during this time.

Use our mortgage repayment calculator to compare your mortgage repayments under varying interest rate options

Variable rates

If mortgage rates set to reduce or expected to stabilise at todays levels then a variable rate may be the best option.

With a variable rate mortgage your mortgage repayments will rise or fall in line with the mortgage interest rate set by your lender which in turn are based on the euribor rate.

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Variable rate warning: The cost of your monthly repayments may increase - If you do not keep up your repayments you may lose your home. The payment rates on this housing loan may be adjusted by the lender from time to time.

Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it

Fixed rate warning: You may have to pay charges if you pay off your fixed-rate loan early

Interest only warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period

Debt consolidation warning: This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term

Endowment loan warning: There is no guarantee that the proceeds of the [Insurance Policy / Pension Policy] will be sufficient to repay the loan in full when it becomes due for repayment