Interest Rates
We can advise you in regard to choosing your mortgage rate. The principle matter to consider when choosing the term of your mortgage is whether to choose a fixed or variable rate mortgage. Lower Green Interest Rates are available when the BER rating on your home is between A1 and B3. Discounted rate offerings may be available from lenders and many lenders offer special one year rates to new applicants. It is very important to look at the historical variable rate that the particular lender is offering as this may be an indicator to future higher long term variable rate margins the lender may charge .
Our advice focuses 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 can 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 fixed rates offer certainty of repayment. Timing and good advice is everything as it may not be a good idea to fix your repayments for a number of years when market indications are that interest rates are close to peaking.
- You can choose to fix your rate for a set number of years on a pre-defined term length. After this time the rate will revert to variable or you may choose to fix again.
- Split Mortgage Rate: You can choose to have a portion of your mortgage on a variable rate and the remainder on a fixed rate – you can decide the split. This allows you to make lump sum payments off the variable rate portion reducing the interest repayable and the loan term.
- Moving Home: You can carry over your fixed rate with you to your new home mortgage loan without any redemption penalty. This is subject to drawing down your new home-loan mortgage within 6 months of redeeming your previous mortgage.
Having a fixed rate mortgage means you can budget for a set number 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 economic market conditions indicate that mortgage rates are set to reduce or stabilise then a variable rate may be a better 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.
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.
