Tracker and vulture fund customers have borne the brunt of recent ECB rate increases
Now though almost 200,000 mortgage holders with less than 2 years to run on their fixed rates or who are already on variable rates are set to see their rates rise to 5.5%
Rates of 5.5% will add €111 a month to the average mortgage repayment and more than €17,000 in extra interest across the whole mortgage term if rates stay at 5.5%.
So it’s big hit in the pocket potentially for those customers.
What can mortgage holders do?
Fixed rates of 3.95% for up to 30 years are available from some lenders, which would cap your repayments and cut the €111 a month hike in repayments to an increase of just €25 a month.
If you are on a fixed deal currently It’s extremely unlikely you will need to pay a ‘breakage fee’ for fixing with another lender. As new EU laws prohibit banks from charging fees when rates are rising.
I’d advise anyone on a fixed rate of less than 2 years or a variable to talk to a mortgage broker who will put you on the best long term fixed rate for your circumstances
The big Irish banks have some of the highest fixed rates on the market right now, so I strongly recommend you don’t refix with your current bank without checking out other options.
1 июн 2023
