Responding to the most recent Central Bank Retail Interest Rates for December 2021, Brokers Ireland warned that home owners are very likely to be close to, if not at the bottom of the low interest rate cycle and the window of opportunity to avail of the best mortgage rates may be beginning to close.
Rachel McGovern, Director of Financial Services at Brokers Ireland said it was notable that the ECB in recent days had adopted a more hawkish tone on the issue with one member of its Council saying he expected to see an increase in the final quarter of the year.
“All mortgage holders, apart from those on tracker rates, who have not already done so, should review their position in light of these developments.
“More people are getting the message and switching to better rates, with Banking and Payments Federation Ireland figures indicating that switching and re-mortgage activity jumped by an impressive 20.8per cent year-on-year in November.
“Even though Irish rates are still way ahead of the euro area average, with today’s figures showing us topping the league once more, at 2.69pc, more than double the EU average of 1.29 percent, we’ve never before had rates as this level, and we’ve never before been able to lock into somewhat similar rates for periods of up to 30 years, depending on the lender,” Ms McGovern stated.
She said the 1.40 percent margin over and above the euro area average that Irish mortgage holders are paying is costing them €2,517.72 per year more than their euro area counterparts and over € 75,531.60 over 30 years on a €300k mortgage.
“We would like to send a strong message to mortgage holders who are on variable rates to examine the market in terms of genuine long-term fixed interest rates,” she said.
“It would be wise now to plan carefully for the future without further delay and seek advice from a Financial Broker who will tailor it to your own particular circumstances and future plans,” she concluded.
