The rumours that PTSB were about to increase rates has been confirmed today. PTSB have announced that variable rates for existing customers will increase by 0.5%. This will mean an increase of about €65 for anyone with a mortgage of 250k over 25 years.
This is terrible news for all mortgage customers not just those with PTSB. Although other lenders have today denied reports that they are planning rate increases, it is almost inevitable that they will.
It is a hard pill for mortgage customers to take at this time when they are already trying to cope with the effects of the worst recession to hit this country in decades.
Friday, July 24, 2009
Wednesday, July 22, 2009
PTSB to announce variable rate increase
In a number of different newspapers yesterday it is rumoured that PTSB are planning to introduce an increase to their variable rate for new and existing customers. It is only a rumour at this stage but it would seem that the news has been leaked from PTSB to try and soften the blow of the news when the actual increase is announced.
This is bad news for all Irish Mortgage customers currently because if PTSB put their rates up then the other Irish Lenders will no doubt follow with increases of their own.
Customers on tracker rates are safe for now as it does not look like the ECB will increase rates anytime soon but all those on variable rates should prepare themselves for a rough ride over the next few months.
Anyone currently on a variable rate should really consider fixing for at least 2 or 3 years. However it really depends which lender you are currently with. BOSI for example has very high fixed rates but on the other hand lenders like AIB and EBS have attractive fixed rates. You really need to check with your own lender and then make a decision as to whether or not it is worthwhile fixing.
This is bad news for all Irish Mortgage customers currently because if PTSB put their rates up then the other Irish Lenders will no doubt follow with increases of their own.
Customers on tracker rates are safe for now as it does not look like the ECB will increase rates anytime soon but all those on variable rates should prepare themselves for a rough ride over the next few months.
Anyone currently on a variable rate should really consider fixing for at least 2 or 3 years. However it really depends which lender you are currently with. BOSI for example has very high fixed rates but on the other hand lenders like AIB and EBS have attractive fixed rates. You really need to check with your own lender and then make a decision as to whether or not it is worthwhile fixing.
Sunday, July 5, 2009
Should I Switch Mortgage Lenders?
As the recession continues to bite it is more important than ever to operate a tight personal budget. For most people their mortgage is their biggest monthly commitment and so an opportunity to reduce the cost of your mortgage should not be missed.
If your mortgage is with one of the foreign owned banks then now is the time to switch. Irish mortgage lenders have much better deals, especially if you are looking for a good fixed rate. The difference in the worst and the best 5 Year Fixed Rates is enormous. The worst 5 Year Fixed is 7.75% and the best is 3.86%. Over five years there would be a saving of over €35,000 if you picked the best rate.
However these huge savings are not for everyone. Remortgages are only available to borrowers who have equity in their properties. The highest remortgage loan to value on offer is 90% at best and as low as 50% with some lenders. Therefore a remortgage is probably not on the cards for anyone who has bought over the last 4 or 5 years.
If you do have equity in your property then you should contact a good Mortgage Broker who will calculate the possible savings for you.
If your mortgage is with one of the foreign owned banks then now is the time to switch. Irish mortgage lenders have much better deals, especially if you are looking for a good fixed rate. The difference in the worst and the best 5 Year Fixed Rates is enormous. The worst 5 Year Fixed is 7.75% and the best is 3.86%. Over five years there would be a saving of over €35,000 if you picked the best rate.
However these huge savings are not for everyone. Remortgages are only available to borrowers who have equity in their properties. The highest remortgage loan to value on offer is 90% at best and as low as 50% with some lenders. Therefore a remortgage is probably not on the cards for anyone who has bought over the last 4 or 5 years.
If you do have equity in your property then you should contact a good Mortgage Broker who will calculate the possible savings for you.
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