Fixed or Variable Rates
Our consultant will advise you in regard to choosing your mortgage rate. The principle matter to consider when 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. We can advise you in regard to choosing your mortgage rate. The principal matters to consider include choosing the term of your mortgage and whether you choose a fixed or variable rate. In addition we need to consider any discounted rate offerings, and ‘cashback offering’ available from certain lenders.
Will availing of a ‘cashback offer’ mean that you may be repaying a higher variable rate interest repayment for the years to come ?
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 incur a penalty for breaking a fixed rate contract. On the other hand if you move home during a fixed rate period then the lender may allow you to carry over your fixed rate onto the new property without any penalty once you close the purchase on the new home within 6 month of selling your existing home.
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. If you want certainty into the future in regard to your mortgage repayments then you may 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.
We can advise you of the alternatives and the cost of the various options. Much depends on your risk profile, the size of the mortgage and your income.
Future mortgage rates are uncertain and a fixed rate may provide the certainty of repayment you are looking for.
You can fix the rate for a set number of years for a pre-defined term .
n advantage of a fixed rate mortgage is that you are able to budget for the next number of years and your repayments will not increase during this time.
See our mortgage repayment calculator.
Variable Rates
If mortgage rates set to reduce or expected to stabilise at today's levels then a variable rate may be the best option. If mortgage rates are set to reduce or stabilise then a variable rate may be considered.
With a variable rate mortgage your mortgage repayments will rise and fall in line with the mortgage interest rate set by your lender which in turn is based on the Euribor rate.
