Experts at MyMortgages.ie say market developments are signalling an impending explosion in the fixed rate mortgage market in Ireland. KBC is the latest to slash its rates to five year fixed rate to 2.8 percent with Ulster Bank offering a 2.3 percent two year fixed rate and a 3.25 percent fixed rate for seven years. PTSB have also recently dropped its fixed rates to 3.7 percent for existing customers. According to the mortgage brokers, these cuts signal real savings for mortgage holders.
Acknowledging the changes, Joey Sheahan, Head of Credit with MyMortgages.ie says, "the new fixed rates offerings are good news for a variety of mortgage holders the length and breadth of the country. Mortgage holders with more than 10 percent equity in their home are in a particularly strong position. So, it’s time to be proactive in reviewing your mortgage and ensuring you get a piece of this rate war savings pie!
Our figures show that a homeowner in Westmeath with a typical €250,000 mortgage could save €222 per month by switching to a better fixed rate now and save €79,810 over the lifetime of a 30-year mortgage.” MyMortgage.ie say that Central Bank figures show that based on activity in the market, fixed rate mortgages are soaring in popularity. Latest CBI figures showed that fixed rate mortgages accounted for 54 percent of new agreements over the three months to May 2018.
Mr. Sheahan thinks figures will continue to climb and are on their way to mirroring the Euro area average, where fixed rate mortgages account for approximately 80 percent of new agreements over the same period. MyMortgages.ie say that while it’s almost guaranteed that the ECB will up their rate in the next 2-3 years, mortgage holders are in a strong position to negate the impact of such increases by switching lenders and availing of these fixed rate offers. MyMortgages.ie are advising mortgage holders to begin the process by contacting their existing lender and confirming their rate of interest, balance outstanding and term remaining on the mortgage, asking the lender if the variable rate they are on is the best available and what fixed rate options are available as an existing customer and finally contacting a qualified and professional mortgage advisor and asking them to compare their existing mortgage terms to appropriate alternatives on the market.