Responding to the most recent Central Bank Retail Interest Rates for January 2022, Brokers Ireland advised mortgage holders, other than those on trackers, to review their current rate and term of mortgage and consider if they could achieve a rate and term that would better suit their circumstances and give greater security into the future.
Rachel McGovern, Director of Financial Services at Brokers Ireland warned that we 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 closing.
“Even though Irish rates are still way ahead of the euro area average, with today’s figures showing the Irish weighted average interest rate on new mortgage agreements in January at 2.76 percent, more than double the euro average rate of 1.31 percent, they are generally historically low, and we’ve never before been able to lock into somewhat similar rates for periods of up to 30 years, depending on the lender,” she said.
She noted that both the Irish and euro area average rates have shown a month-on-month increase.
And she advised mortgage holders when switching to concentrate on the interest rate and the term for which it is available and not to be tempted by short-term incentives, such as once-off payments and cover for legal or other services.
“We are now in a very volatile period with the war in Ukraine and no one knows when or how it will end. We do already know, however, that it has disrupted markets and will continue to do so. So mortgage holders and particularly those who have not already reviewed their situation need to plan carefully for the future without further delay and seek advice from a Financial Broker who will tailor it to suit individuals particular circumstances and future plans,” she added.
She said the 1.45 percent margin over and above the euro area average that Irish mortgage holders are paying is costing them over €2,600 per year more than their euro area counterparts and over €78,500 over 30 years on a €300,000 mortgage.
