Mortgage rates drop to lowest in years – but warn floating-rate customers are now in a ‘last chance saloon’

Mortgage interest rates have fallen to their lowest levels in years.

This has prompted people using expensive variables to warn them to grab the last chance to get a cheaper fixed rate.

Mortgage rates in the country are now the eighth lowest in the Eurozone, compared to the highest just a few months ago.

This contrasts with the rest of the Eurozone, where interest rates have risen dramatically over the past six months.

New figures from the Central Bank of Ireland show that the country’s average new mortgage rate was 2.58% in September. This is down from his 2.64pc in August.

The Eurozone average is 2.40%, the highest level since at least August 2017 and more than double what it was at this time last year.

Ireland was also the only country where average interest rates fell in September compared to the previous month.

Daragh Cassidy, head of communications at Bonkers.ie, said:

“But it must be remembered that Irish rates were relatively high to begin with, especially floating rates. It should be welcomed.”

Bank of Ireland and Permanent TSB have yet to pass on either of the 2% rate hikes from the ECB to non-tracker customers.

AIB raised fixed interest rates by 0.50 percentage points. This increase only took effect for new applications in mid-October.

Broker Michael Dowling says there is still time for those with variable rates or those nearing the end of fixed rates to ask their lender for a new fixed rate or switch to another provider. rice field.

He said the ECB has hiked rates three times, with even bigger hikes expected by next summer.

He said people using very high-margin trackers should seek advice if they are considering quitting trackers and going fixed rate.

200,000 homeowners have variable interest rates. The tracker has 250,000 and increases or decreases as the ECB rate changes.

These people are at the ‘Last Chance Salon’ when it comes to taking advantage of the lowest fixed interest rates in years.

Dowling said the first thing anyone looking for a solution should do is ask their lender what options they have.

Despite the fact that some lenders take six weeks or more to process a switch, you may still have time to switch your mortgage.

He said Permanent TSB offers a four-year fixed interest rate of 2.05% for those with loans worth less than 80%.

But the hardest hit by the ECB’s frenzy of rate hikes are those who have sold their mortgages to vulture funds because the institutions offering these loans do not offer fixed interest rates.

Thousands of borrowers were affected after mortgages were sold by Permanent TSB and others, and are now managed by Start Mortgages, Pepper, and Cabot.

Many are saying the floating rate will now be 5.1%, while others report being hit with rates as high as 5.8%.

This is despite central banks and governments telling them they would not lose money if their mortgages were sold.

Dowling said credit service companies do not offer fixed rates, leaving borrowers completely exposed to rising ECB rates.

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