FIXED-RATE LOANS ON THE RISE… SO GO ON AND DO IT!
Don’t say we didn’t warn you about rising fixed rates.
While you’re switching your mortgage, it also makes sense to fix.
A recent rise in ICS fixedrate loans is a sign of things to come in the mortgage
market. ICS customers will see repayments go up by more than €6,000 on a typical fixed-rate deal for five years.
This makes it even more compelling to review your loan and lock into a good fixed-rate deal by switching or getting a better deal from your lender.
‘Mortgage rates the lowest they’ve been for over 12 years,’ said Martina Hennessy of Doddl.ie.
‘Upward pressure could result in other lenders also increasing rates in the nottoo-distant future.
‘With fixed-rates lower than variable ones, 98% of Doddl.ie clients are fixing. Purchasers value the security. Switchers tend to have a strong loan-to-value ratio so can lock in some of the really low fixed-rates on market [from 1.9%].’
Economist Alan McQuaid warned of more mortgage rises to come. ‘The market has lost faith in the ECB line that inflation is only temporary.
With the Ukraine crisis, energy and food prices are only going one way,’ he said.