Mortgage News – What’s New?
Mortgage Interest Rates
In the last six weeks we have seen rate changes from six lenders with rates now starting from a competitive 3.45%.
The gap between rates is a record high with lowest rate starting at 3.45% and going right up to 7.15%.
Selecting the right mortgage rate is so important to ensure you repay as little as possible on your mortgage.
There are not ten lenders in the Irish market, if you go to one lender you miss out on what 90% of the market has to offer and chances are you will not get the best rate available to you.
At doddl we offer market based advice and we work for you to secure the best rate and terms for your needs, all at no cost to you.
What is the most popular mortgage rate now?
Up until mid 2023 mortgage rates of 5 years and above were our most popular rates as mortgage holders sought to lock in security over repayments in a volatile rate market.
In 2024 we have seen clients favouring shorter term fixed rates of 1 – 4 years as the expectation that we will not see rates increase further and could see some rates fall further.
Mortgage holders do not like to speculate on their rate they like to lock in certainty so fixed rates remain popular.
You should also be aware that some lenders offer options to overpay when on fixed or if they dont you can request a split rate, part fixed, part variable or part fixed on different terms.
Mortgage Cashback Offers
Mortgage cashback is where a bank gives you either a fixed sum or a percentage of your mortgage back in cash when you draw down. The amount is lodged to your current account within 45 days of draw down.
The highest cashback is a 2% cashback at draw down with a further 1% at the end of year 5 subject to terms. So if your mortgage was €350,000 you would get €7,000 cashback.
Cashback is available to purchasers and switchers and in recent months we have seen lenders introduce and enhance their cashback offerings –
Mortgage switching, cashback offers now range from €1,500 right up to 2% of your mortgage back in cash. The lowest rate on the market is now available to switchers with a €3,000 cash offer. Mortgage holders switching to avail of the lowest market rate of 3.45pc can also avail of a cash offer of €3,000.
Some cashback rates are higher than others, it is so important to do your research or speak to our expert mortgage team at doddl to select the best mortgage rate, mortgage level, flexible benefits, and options such as cashback or overpayment.
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Rates as at 16/05/24.
