Rise in mortgage rates to continue into 2023 - East Coast FM
Figures from the Central Bank have shown that Ireland had the third-lowest mortgage rate in the Eurozone in November and December of last year. However, Ireland’s mortgage rates have started creeping up again due to the ECB’s decision to begin increasing its interest rates in February.
With more interest rate increases expected from the ECB, Daragh Cassidy, Head of Communications at bonkers.ie, appeared on East Coast FM, to discuss whether mortgage holders should consider switching to a fixed mortgage rate.
Listen back to the interview above or take a look at the main points below
- The ECB is expected to raise its interest rates in March and during the summer, meaning you can expect your mortgage rate to increase too.
- People on fixed-rate mortgages, in particular longer-term fixed mortgages of seven or ten years, are not going to be affected by raising interest rates at the moment.
- Mortgage holders who are on variable rates are the most vulnerable to these increases and should be looking to switch to a lender with a cheaper rate.
- If you are on a tracker mortgage and are paying a margin under 1%, the best option would be to stick with your tracker mortgage and ride out the storm.
- However, if you are paying a margin above 1%, in particular, if you are paying above 1.3 or 1.4%, your best option would be to seek out financial advice and/or consider switching to a fixed rate.
- Find out everything you need to know about the different mortgage rates on the market here.
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If you're considering switching your mortgage to a better rate, you can compare mortgage interest rates and incentives across all lenders in Ireland in just seconds with our mortgage calculator.
And when you find the right mortgage for you, you’ll be able to complete your mortgage journey with us through our mortgage broker service.
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