Mortgages.ie

Summer 2019 mortgage rate highlights

Fixed rates at their lowest ever

• 2 year fixed rates from 2.3%
• 4 year fixed rates from 2.6%
• 5 year fixed rates from 2.5%
• 7 year fixed rates from 2.99%
• 10 year fixed rates from 3.05%

Fixed rates in Ireland are at an all time low. In general our advice is to fix for as long as possible, but be careful in regard to follow on rates and avoid getting stuck with a lender who unfairly penalises existing customers.

We also caution against jumping into short term fixed rates (2.3% for two years ) as you need to consider where rates will be in two years time.

House prices

The current uncertainty in the international environment will adversely affect house prices. We are a small open economy which is highly exposed to international trade. Brexit will also damage our economy, whether it is a no deal Brexit or otherwise.

We have been of the view since Spring that house prices have peaked and some reduction in prices can be expected, especially in the higher price bracket and in second hand houses.

If the help to buy scheme is scrapped this would most certainly reduce new house prices by somewhere in the region of 10% ( 5% caused by the loss of the help to buy rebate and an estimated further 5% at least on account of reduced number of qualifying buyers).

Given the impact of Brexit we would be surprised if Help to Buy scheme will be scrapped.

We would be in favour of measures to reduce the level of new homes being purchased by investors.

Mortgage Rates

Mortgage rates remain attractive with some very good value for long term fixed rates. We currently recommend fixing for a minimum of five years

Variable rates 90% ltv mortgages from 3.15%. Available through our partner Haven Mortgages Ltd ( AIB Mortgage Group) This is the lowest variable rate on the market for high loan to value mortgages. This rate is also their standard variable rate which is important as it is the rate that mortgage holders follow on to after a fixed rate expires. AIB need to improve their fixed rates offering to match their competitors.

 

5 year fixed <80% ltv 3.2% ( 2% cash back + monthly cash rebate) . Cash Back offers are popular with many buyers because they free up cash to assist with home decoration after a purchase. From a longer term perspective cash back offers can prove expensive, if the rates that apply from the lender offering the cash back are not competitive in the medium term. Many buyers take up the cash back offer on the assumption that if the lender does not offer competitive rates in the future they will move, but that assumes that the lending conditions allowing them to move elsewhere are available! It is important to look closely at the APRC when considering mortgage rates. 

4 year fixed rates <90% 2.6%. This is a very attractive rate available through our partner, Ulster Bank.

Ulster currently promotes that they offer existing customers the same rates as new customers and it is very important that this offer remains in place for mortgage holders.

 

5 year fixed rates <80% ltv >€500,000 from 2.5%. Again exceptionally low 5 year rate aimed at higher value mortgages available through our partner, Ulster Bank. 7 year fixed rate 2.99% up to 80% loan to value and 3.29% over 80% are also very attractive

10 year fixed rates <60% ltv from 3.05% 

KBC have recently improved their fixed rates and now offer five year fixed rates from 2.6%. Your mortgage horizon is very important when choosing between variable and fixed rates. In an ideal world, we would eliminate risk and fix for as long as possible within the horizon of our expected ownership of the property, provided longer term fixed rates were attractive.

Mortgages.ie provide you with impartial information to help the decision making progress. Use the table below to view the latest lender mortgage rates.

If you feel bewildered by the wide range of mortgage options available, why not talk to one of our experienced consultants who will take you through the options and help you choose the mortgage that's right for you. Either fill in the quick contact form or telephone 01 8327250 for no-obligation, advice.

For our latest commentary of mortgage rates please visit our Mortgage News section.

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