Rates on the move again
As expected lenders are raising their rates again.
Some of the increase is on account of the rising cost of funding their loan book and a certain portion is a push for greater profits (smaller losses).
EBS Group have raised their rates by .6% as has their subsidiary Haven Mortgages.We expect other lenders to follow over the coming weeks.We will update our rates as we recieve confirmation .Haven group rates have been updated on our site but we expect all other variable rates will rise by approx.5% in the near future.
So what does this mean for home buyers and existing mortgage holders.
- The increase will raise monthly repayments by approx € 30 per €100,000 borrowed based on a 25 year mortgage.This is a significant increase and will be felt.
- The increase will work to reduce house prices as higher mortgage payments will limit borrowing capacity which in turn wil hit house prices.
What can you do?
- If you are buying a house you should be aware that prices may have slightly further to go and you should reduce your offer accordingly.If you are in a competitive situation you will have to pay the buying price.
- If you are an existing mortgage holder(not on a tracker mortgage) you should examine whether fixing makes sense.There are still 5 year rates available for less than 5% which will seem cheap ina few years time.
If you need advice give us a call.