Mortgage Borrowers Urged To Shop Around

14 Feb 2020 | 09.29 am

Mortgage Borrowers Urged To Shop Around

Lending rate in Ireland 1.5% above eurozone average

14 Feb 2020 | 09.29 am

Commenting on today’s Central Bank report on retail interest rates, Brokers Ireland said Irish mortgage holders are paying 1.51% more than the euro area average.

This translates into c.€229 more every month on a €300,000 mortgage over 30 years, and €82,000 over the lifetime of the mortgage.

Rachel McGovern, director financial services at Brokers Ireland, which represents 1,250 broker firms, commented: “Irish rates are unjustifiable, particularly since savers on the other side of the equation are not getting any benefit. Both borrowers and savers are being squeezed and the winners are the lenders.

“The situation maintains despite the fact that the issue has been highlighted with much political heat being brought to bear on the issue. It points to the lack of sufficient competition in the Irish market,” she stated..

“Irish consumers are losing out of every front, paying unconscionable interest rates and not having better euro area type mortgage products such as 20 year fixed mortgages that enable people to plan their financial futures with confidence.”

McGovern added that many mortgage borrowers are now coming to the end of a five-year fixed interest rate period and there is much better value to be got by switching.

“By shopping around consumers can substantially reduce their repayments. And it has the added advantage of stimulating greater competition between lenders,” she said.

She said mortgage holders can benefit from rising house prices of recent years with an improved loan-to-value (LTV) ratio.

“Most lenders offer a lower interest rate where there is a better LTV ratio, but consumers need to be proactive in seeking out a better rate from their lenders.”

 

 

 

 

Comments are closed.