A variable rate is an interest rate that has an open-ended period i.e. not fixed for a period of time. This rate changes at the Bank’s discretion, as a result of competition in the market or in a response to changes to interest rates in Europe or the cost of borrowing to Irish banks changing due to the situation of the National Economy.
Why should I switch my mortgage to a new lender?
For most people your mortgage will be their biggest financial commitment you have. You should review your mortgage terms at regular intervals as for example market rates on offer can change, your loan to value can become more favourable (as the value of your property may increase and mortgage has decreased due to repayments made) or indeed your existing lender may have been rates to offer to you.
You may decide to switch your mortgage to another lender due to a number of different factors such as:
· To reduce monthly repayment
· To provide a more flexible option for you
· To release equity from the property
· To avail of more favorable interest rates that are on the market (which will save you money!)
· Choosing a fixed rate allows you to regulate payments for a period of time, so you know how much you are going to pay every month allowing you to plan for other things!
doddl can find you the right deal for your circumstances and advise you on any potential savings that you might make taking into account any charges you might have. Leave it to us to shop the market for you!