Good news for Mortgage holders / seekers as the latest ECB rate decrease is beginning to be passed on. A variable rate of just 2.75% is now available mortgages with a loan to value less than 50% loan to value. European Central Bank president has said policy makers haven’t decide whether to stop cutting interest rates below the current 1.5% record low.

With the low rates and developers jumping through hoops for buyers, offering cars, a year of your mortgage paid and more, First Time Buyers are beginning to show interest once again.

Permanent TSB announced they will be restricting their mortgage lending even further. The following restrictions are effective immediately:

1. Mortgage Applications which are outside nets on the loan amount requested will be declined. Previously if a mortgage application was a little outside policy, Permanent TSB was open to negotiation if the application was strong e.g. good savings, in strong employment etc.

2. Remortgage applicants will no longer be able to refinance short term debt if applying to Permanent TSB. Any short term debt will be considered as an outgoing hence reducing the amount you can borrow. Along with that the maximum loan to value for Remortgage applications will be restricted to 75% loan to value.

With Mortgage lenders polices changing all the time it is important to speak to an Independent Mortgage Broker when applying for your Mortgage. Our experienced advisors give jargon free advice comparing all the options available to you, through 16 lenders. Choosing the right Mortgage could save you thousands over the term!

We have had many calls from people enquiring about their Remortgage options available in the current market. We have also had people wondering “Are Mortgage lenders issuing approvals at all?”

There have been major restrictions in Mortgage lending in Ireland over the past year.  The frustrating thing about it for us and for some of our clients affected is that when lenders changed their polices, they gave no lead in time which resulted in a lot of people who had mortgage approval to be left stranded, some of which were at advanced stages of their mortgage loan application.

Good news is that in recent months Mortgage lending in Ireland has stabilized. We have prepared a brief synopsis of  what is available for Remortgages in Ireland, I hope you find it helpful. This synopsis considers the following Mortgage lenders – AIB, KBC Homeloans, First Active, Haven Mortgages, Permanet TSB, Bank of Scotland, ICS Building Society & Leeds Building Society.

- Mortgage lending ranges from 50 – 92% of the value of your home.
- A max term ranges is between 30 – 40 years
- Interest only option is available with some of the lenders. The interest only period  ranges from 1 - 10 years
- You can consolidate your short term debt into your new mortgage, some lenders are restricting the amount you can refinance.
- Variable rates as low as 3.25% is available and a two year fixed rate of just 2.8%

If you would like to find out more about your remortgage loan options, call us now at Mortgage Loans or fill in the form on the right hand side of this page to receive a call back.

Some people get confused about the difference between variable interest rates and fixed interest rates when applying for a Mortgage. They are not at all sure what an APR interest rate is all about. So below is a brief explanation of these:

Variable Rate Mortgage

With this type of loan the amount of interest that you must pay can increase and decrease. Changes in the variable rate are determined largely by base interest rates set by the European Central Bank (ECB). So, put simple if the ECB rate goes up your rate will increase swiftly afterwards, if the ECB rate reduces it will reduce, maybe not so swiftly though. You can overpay and redeem a variable rate mortgage without penalty, by doing this you can reduce the term of your Mortgage and the interest you pay.

Fixed Rate Mortgage

Are you looking for a mortgage where you will know what your repayments will be for a fixed period so that you can plan your budget? If so, then a fixed rate loan may be for you.

Fixed rate loans are those where the rates are fixed for a specific term with the result that your mortgage repayment remains constant for that term. For example, you can take your mortgage over a 20 year term and decide to get a fixed rate for the first 3 years of that term; thereby making it easier to plan for the future.

So, of course, the question is ‘What happens at the end of the fixed period?’ At the end of the fixed period you can choose between fixing your payments again for another specified period of time at whatever the new prevailing fixed rates are on offer, or you can switch to a variable rate repayment method.

If you opt for a fixed rate you commit yourself to paying this rate until the agreed period of time has expired. If you decide to pay your loan back early or wish to change to a different interest rate offer you will have to pay a fee (known as an early redemption fee) for terminating your fixed rate agreement. You should therefore only opt for a fixed rate if you are certain that you won’t be “breaking” the fixed term contract.

What Rate Should I Go For?

To determine what rate is suitable to you depends on your individuals circumstances. First time buyers might want the added security of a fixed rate for the first few years of the mortgage whilst a remortgage client who is comfortable with their current mortgage repayments would go for a variable rate in hope of further reductions to the ECB.

My advice is to speak to an impartial Mortgage advisor. At Mortgage Loans We cut out the jargon to make the decision easy for you.?