How the Right Type of Mortgage Could Save You a Lot of Money

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The right interest rate can be difficult to find. Here is some general advice when it comes to picking between a fixed vs. variable rate:

  • Fixed Rate Definition: An interest rate that stays at a fixed level for a specified period of time, regardless of the prevailing economic conditions
  • Variable Rate Definition: An interest rate that changes with respect to the economic conditions

In general, if interest rates will increase, it is wise to lock in your fixed rate loan so that you are paying less interest on a monthly (or regular) basis. However, given the fact that Ulster Bank, KBC, and AIB (twice) have cut their rates in the last year, it may be smart to consider refinancing your mortgage with a fixed rate lower than what you already have. The price war is heating up.

Note: You may want to check with your bank to see the cost of switching off your current mortgage rate (fixed or variable).

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