Mortgages.ie - Mortgages and Mortgage Protection Insurance

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Interest rate direction

The current international turmoil is likely to continue through this year and beyond.

The new trade arrangements will negatively affect European growth rates. There is also a clear danger of price inflation brought about by tariffs and supply chain issues. This is a difficult set of circumstances.

Inflation usually leads to an increase in interest rates whereas a slowing economy tends to lead to a rate reduction.

It is ironic that the USA itself will have this dilemma to deal with. They believe that the tariff income and new investments in the US by multinationals will make it all worthwhile!

In all this turbulence the consensus in Europe appears to be less concern about the inflationary threat and more about economic growth leading to an expectation that ECB will reduce base rates by ½% by June 2025.

Mortgage rates

Your mortgage repayments are a function of the loan amount, the interest rate, and the term over which you repay the mortgage.

On a 30-year mortgage the total interest on the loan will equal to approximately 65% of the cost of the property. This is a large amount of money, and it reinforces the rationale to take advice on this issue.

The rate lenders will charge on a mortgage will depend on their cost of funds and operating costs.

We monitor lender rates to ensure you get the best value.

Securing the best interest rate, both at the start of your mortgage and throughout your mortgage term will save you a substantial amount of money.

Simple advice you should consider:

• Take professional advice. Use our free broker services and take advantage of the experience of our team of chartered accountants and mortgage consultants to guide you.
• The total repayments on your mortgage are extremely sensitive to slight movements in interest rates. A ½% difference between two mortgage rates over a mortgage term could be equivalent to over 10% of the amount you borrow.
• The longer the mortgage term the lower the mortgage repayment each month. But the longer the term the more interest you will pay. It is worth remembering that you will pay 50% more in interest on a 35-year mortgage compared to a 20-year mortgage. We recommend paying close attention to your choice of term.
• Fixing the interest rate on your mortgage for a specified term ensures your mortgage repayments will not change during the fixed rate period. Remember to consider what rate options are available to you after the fixed rates expires.
• Lenders have different policies regarding overpaying your mortgage when in a fixed rate contract. Most lenders allow a maximum of 10% of the monthly payment as an overpayment allowance. Avant are more accommodating offering 10% of the balance as an overpayment each year. In you have a variable rate mortgage there is no limit on overpayments.

House prices

House prices are a hot topic at present — Spring 2025.

In Ireland's fast-growing economy, population growth and immigration have added to the huge demand for housing. High rents, strong availability of consumer credit and government supports for new builds through the help to buy and the first home scheme, have all driven the recent growth in house prices.

It is quite possible that recent international tensions will impact this trend.

Ireland has an open economy with a high reliance on trade with the USA.

The imposition of tariffs by the USA in one form or another will reduce our growth rate and dampen aggregate demand. Even after negotiations take place it is most likely that Ireland will feel pain under a new USA policy.

It is likely that housing demand and prices will come under downward pressure in this uncertain environment.

Mortgage Lenders

Avant Money

Avant Money provide their mortgages through a select broker group including Mortgages.ie. We believe their long-term mortgage offers with fixed rates up to 30 years are always worth considering.

In an era of uncertainty there is great comfort knowing what your mortgage costs will be into the long term.

Avant Money are a long-established business in Ireland. They formerly traded under the MBNA brand. The business is owned by the large Spanish Bank- Bankinter.

Haven Mortgages - AIB group

Haven is a broker only lender and are part of AIB Group. They have a competitive mortgage offering including the lowest variable rates on the market, an excellent green mortgage product that you can carry with you through your mortgage if your property has the appropriate BER Rating. They also have a €5,000 cash back offer for mortgages greater than €250,000.

Bank of Ireland

Bank of Ireland have an attractive range of mortgages available through Mortgages.ie.

For individuals attracted by cash back, Bank of Ireland's 3% cash back offer is appealing. In general, when comparing cash back offers with non-cash bank rates from the same lender, the overall cash difference is usually quite small. Some buyers prefer to see the money coming off their mortgage, whereas others like the additional cash when they need funds for spending on their new home.

Bank of Ireland price their mortgages by reference to BER ratings, with the cheapest rates offered for A rated houses. Unfortunately for older properties this form of pricing works against them because of lower BER ratings.

Bank of Ireland offer attractive rates to their existing customers.

Permanenttsb

Permanenttsb are making strong progress in building their market share both organically and through the acquisition of the Ulster Bank book.

Cash Back offers are very popular, and they have also some attractive Grenn rates for homes with good BER rating.

Nua Mortgages

Nua are a new entrant to the market with more generous acceptance criteria in several areas. Their rates are higher than the more established lenders.

Examples of these more generous policies include:

• Age limits at end of mortgage up to age 75
• Facilities to release up to €300,000 from your house equity.
• Facilities to allow joint borrowing by siblings.

They also have fast turnaround times throughout the mortgage process.

ICS

This lender specialises in the buy-to-let market.

Let's talk!

Mortgages.ie provide you with impartial information to help the decision-making progress. We also manage your mortgage from our initial conversation through to closure.

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.