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 5-year fixed rate to 2.8%.
Ulster Bank are now offering a 2.3% 2-year fixed rate and a 3.25% fixed rate for 7 years.
PTSB have also recently dropped its fixed rates to 3.7% for existing customers.
According to the mortgage brokers, these cuts signal real savings for mortgage holders.
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% 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 Longford 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.”
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 per cent 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% 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.
The mortgage broker is advising people to be pro-active and not to let apathy get in the way of savings them thousands of Euro.
Begin the process by:
- Contacting your 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.
- Contacting a qualified and professional mortgage advisor and asking them to compare their existing mortgage terms to appropriate alternatives on the market.
Subscribe or register today to discover more from DonegalLive.ie
Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.
Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.