Mortgage Calculator Faqs

Set out below are some frequently asked questions about our mortgage calculator.

If you have any questions please send an email to info@mortgages.ie. We would be delighted to hear from you.

 

 


What factors determine the list of products that are displayed in the mortgage calcualtor results?
Our Irish mortgage lenders are constantly changing their rates, lending policies and criteria. Our  popular mortgage repayment calculator was developed to ensure that you can correctly compare the alternatives available from our lenders as they relate to your specific circumstances.

The results will display the products offered by Irish Mortgage lenders that match your input criteria. For example, if you are looking for a 90% mortgage the calculator will not display a lender offering a max facility of 80% etc.

Using the filter and change options enables you to narrow down your search.

The change option allows you to change the values and terms you have input at the start of the calculation.

The filter allows you to filter the results by lender and change the sort order.
What happens when I click on a product?
If you select a product by clicking, you will be linked to a products detail page where you can also stress test loans for changes in interest rates, view summary details of the product including follow on rates in the case of a fixed rate mortgage, and see the impact of increasing your monthly payments on reducing interest charges and the mortgage term.
Please not the stress test facility on our mortgage calculator is available for variable rate loans only, as stress tests are not relevant on fixed rates loans as the rates do not change during the fixed rate period.

Even if you are planning on taking out a fixed rate mortgage, it is very useful to look at variable rates and especially the product detail area for these rates, to assist you in understanding the general impact of increases in mortgage rates on monthly repayments.

How do I compare mortgage offers?
Our mortgage calculator helps you compare mortgages.
Our consultants are available to discuss the results of our mortgage calculator and to consider the full range of variables with you, including cash back offers, possible rises in future rates, changing individual circumstances and the changing lender landscape.

When using our mortgage calculator there are a number of matters you should look out for when comparing lender offers. The first matter to consider is the interest rate, as this determines the monthly cost of your mortgage.
  1. The aprc is a useful indicator of the longer term value of a mortgage product. The aprc is calculated by looking at the cost of the mortgage over the long term and helps overcome the distorting effect of introductory offers and incentives. The aprc is calculated as the total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit. 
  2. When considering a fixed rate mortgage, you should look not only at the initial fixed rate, but also the the rate that follows the fixed rate, often known as the follow on rate. This information is available for every fixed rate in the results section of our mortgage calculator.
  3. Some lenders offer cash back and for many buyers this can be a key factor in choosing a lender. If you take a short term view, perhaps up to five years, these cash back offers can be attractive. However, you should look at the follow on rates and the overall interest charges  closely before deciding on your preference. Cash back advances cannot be clawed back under European Legislation.
  4. The most important consideration when taking out a mortgage is the cost or interest rate. However, other matters to consider when assessing a lender include, experience in the Irish market, current variable and fixed interest rates, historic interest rate policies, customer service levels, commitment to remain in the market, price transparency.
  5. Other features will be attractive to some borrowers and not others. Examples of this include, the ability to overpay your mortgage without penalty when taking out a fixed rate, the availability of payment break options and the option to borrow at low cost mortgage rates when upgrading your home.  
How do I use the mortgage calculator to calculate mortgage affordability
As we have stressed throughout the site, the key consideration when looking at a mortgage is whether you can afford the repayments.
There are some basic rules that you need to consider when using our mortgage calculator in this regard.
  1. The less you borrow the more affordable the mortgage. This may sound so obvious that it does not need to be said, but stretching to have a fourth bedroom when you really do not need one can often be a step too far!
  2. The longer the mortgage term the cheaper are the monthly repayments.The average mortgage term for first time buyers is 30 years. The other side of this is that the longer the mortgage term the more you will pay in interest. Try and start with a mortgage term that is not the longest one available to you!
  3. In 2021, fixed rates are significantly cheaper than variable rates and are therefore more affordable. (By historical standards fixed rate being cheaper than variable rates is very unusual ). So at present, fixed rates are generally a better option than variable rates.
  4. When you look at the monthly mortgage payments figures in our calculator you should add 25% to this figure when considering affordability. So if the payment is €1,000 you should be comfortably able to afford  €1,250 per month.
  5. You should very seriously consider taking out income protection insurance when entering into a mortgage transaction. If you get a long term illness and cannot do your normal work there is a strong possibility that you will not be able to afford the mortgage and you will need to sell your house and will have to move to a rental property. Premiums for income protection insurance are tax deductible. 
Which lender rates are included in the mortgage calculator
Our mortgage calculator displays the current mortgage rates on offer for the following lenders:
  • Aib Group ( Haven Mortgages Ltd)
  • Bank of Ireland
  • Finance Ireland
  • KBC Bank
  • permanenttsb
  • Ulster Bank
To view a specific lenders offering you  the filter option on the results section of the mortgage calculator. You can also use the filter to compare two or more lender's rates and filter by initial payment or on the full repayments over the term of the mortgage basis.


 
How do I take cash back into account when comparing lenders.
Some lenders use cash back as an incentive to drive customers to their products.
For example, Bank of Ireland will give new mortgage customers 2% after they drawdown their mortgage and a further 1% at the end of year 5. 

For example, if you are taking out a €300,000 mortgage and choose to avail of their cash back scheme you will receive €6,000 shortly after you draw down your mortgage and a further €3,000 at the end of year 5- in total €9,000.

For some individuals this cash back gives them money to spend on their new home at a time when it is badly needed. For others, the higher interest rates associated with the cash back offer and the higher interest payments they will pay over the loan term make the cash back offer unattractive.

One point that should be taken into account is that the cash back is not refundable. A mortgage holder is free to avail of cash back and switch to another lender at later date.

Cash back offers may be especially attractive to a buyer who wants the cash back but plans to switch lender to a lower rate facility at a later date. You can use the mortgage calculator to quickly compare the costs over a given period.

For example in the case of the €300,000 mortgage above with the €9,000 cash back, a 90% Finance Ireland mortgage would cost almost €7,000 more in the first 5 years on 5 year fixed rate compared to Bank of Ireland, but this initial saving would be be eaten up higher long term interest rate costs over the term of the mortgage.