Purchasing a home is very important and it takes careful financial analysis. The monthly repayments alone will eat up a large portion of your income for the lifetime of the loan. Since getting a mortgage is an important aspect of your life, it is imperative that you find the best deal to fit your property needs. I am going to compare the best variable rates offered by Irish Banks
According to The Banking and Payments Federation Ireland first-time buyers borrow around 225,000 Euros for over 30 years on average. The calculated loan average puts the loan to value ratio at 90 percent. Based on this, AIB, Haven, Finance Ireland, and ICS mortgages offer mortgages at 3.15 percent interest with monthly repayments at 966. The KBC, Permanent TSB, and Ulster back continue to 3.3, 3.4, and 3.6 percent respectively. An important fact is that these rates are only allowed for people who have current accounts with the banks listed.
First time buyers especially have strong incentives when looking for a mortgage. The AIB and KBC offer discounts on home insurance, that are 30 and 25 percent respectively. Ulster bank offers 1,500 Euros toward legal fees, and Permanent TSB offers 2 percent of your mortgage cash back. BOI and EBS offer 3 percent cash back as well. These offers are very good and worth considering, If you have the chance to take advantage of these mortgages it will help ease your wallet. Comparing to the same model, a 225,000 Euro mortgage with EBS or BOI would give you 6,750 Euros in total. You would receive 4,500 up front and 2,250 after five years.
Permanent TSB has also offered better cashback deals recently. In addition to the 2 percent cash back at drawdown, the bank offers 2 percent of your mortgage payment back in cash each month provided it is paid from a Permanent TSB Explore Account. It is important to consider to lifetime of your loan as well, lenders usually offer lucrative cashback deals paired with bad rates. The rates I stated above are also subject to change, because they are variable rates. The economy really dictates how these rates will change throughout the lifetime of your loan. Even though there is uncertainty with rate changes, they usually do not move drastically during the lifetime of your loan.
Variable rates have been traditionally favoured in Ireland. However, you should choose the rate that best suits your needs. It is important to do your homework and possibly look into dealing with a broker to find the best deals.