Mortgage payments are likely to be your largest monthly cost over the years, so getting the best price is rather significant. In this post, we go over some of the best mortgage rates available for you this month (April 2021).
Some of the variable mortgages of this month can offer up to 90% loan value to their respective customers. On average rates this month were between 3 – 4% for variable-rate mortgages. bear in mind many companies will try to entice you to do business with them via offers such as lower initial rates and other offers. For example, KBC provides a 25% discount on home insurance, Permanent TSB provides 2% of your mortgage in cash, and Bank of Ireland and EBS provide up to 3% cashback, and Ulster Bank is offering € 1,500 in legal fees and a free home valuation.
However, before you succumb to any tempting cashback deals, take the time to evaluate their worth over the course of the loan. This is because the best cashback offers always come with the lowest prices, and as you can see, many of these lenders don’t make it to our table.
It should also go without saying that the rates mentioned above are variable and therefore subject to change. This means that depending on whether interest rates rise or fall, the value of your monthly payments will rise or fall over the duration of your mortgage.
You can choose how long you want to lock in your rate by using fixed rates. The flat rate, as the name implies, will not adjust over the agreed-upon time period. The longer the flat rate, the more expensive it is in most cases. Fixed rates of up to ten years are now available in Ireland, but most first-time buyers opt for a three- or five-year rate.
The most affordable rate for mortgages in Ireland in April 2021 is between 2 – 3% for fixed-rate mortgages based off of multiple brokers’ websites. Usually, Customers with fixed-rate mortgages get a better deal than those with variable-rate mortgages.
They would, however, be unable to benefit from declining rates, and it is possible that customers on variable rates will pay less in the long run than those on fixed rates.
Variable or fixed rates?
One of the most important choices you’ll make during the mortgage application process is whether to go for a fixed or variable rate. Each has its own set of benefits and drawbacks, but the best rate for you will ultimately depend on your personal preferences, financial condition, and the importance you place on consistency and predictability.
While variable rates have historically been the more common choice in Ireland, fixed rates have been gaining popularity in recent years.
If you have a larger deposit and, as a result, a lower loan-to-value ratio, you might have better options.
Your best bet is to run your own comparison to ensure you’ve weighed all of the choices available for your specific situation.
Written by Bader Albader, market researcher.