Consumers advised to act now and review mortgage before ECB rate rise

Responding to the Central Bank Retail Interest Rates for June, Brokers Ireland has stated: "While there is a very welcome and further narrowing of the gap between Ireland and the euro area average interest rate, with Irish mortgage holders now paying less than 1pc (0.78pc ) over and above the euro area average - it is of no practical effect to borrowers who should concentrate on getting the best mortgage rate available in the Irish market; and who should do so in the very short window left before the ECB raises its rate further as it has already indicated."

Rachel McGovern, Director of Financial Services at Brokers Ireland, added: "While it may be galling to have had to endure extremely disproportionately high rates for so long, the issue that should be the primary focus for all borrowers - except those who have already fixed their mortgage rates for an extended period - is, what is the best rate I can get now, right this week.

"Current rates, even though ahead of the euro area average, are the lowest we’ve seen and can now be locked in for longer periods of up to twenty five years, depending on the lender.

"Some lenders have already moved to increase these long-term fixed rates which lenders generally have been concentrating on lowering in recent years. When lenders move, they do so for self-interest, not your interest, so act fast," she said.

She advised anyone in doubt to contact a professional advisor, saying: "Experts know the best options to suit individual circumstances, and they know all the pathways towards best value, such as whether or not someone on a relatively short-term fixed rate should pay the cost of exiting that rate to get a longer term."

She said every 0.25 per cent increase adds €12 per month or €147 per year for every €100k borrowed.


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