Why mortgage holders should “act now” to avoid repayment hikes


A mortgage adviser said we are heading into a period of “sustained interest rate increases”.

Martina Hennessy, chief executive of doddl.ie, said people should act now to avoid reimbursement hikes.

Some rateholders who reach the end of their current rate face increases of up to €1,500 per year to lock in a new five-year rate.

They will pay close attention to the European Central Bank (ECB), which may decide to implement a proposed 0.75% rate hike this week.

This would follow a 0.5% increase in July.

Irish banks didn’t pass on a previous hike to customers, but we shouldn’t get away with it a second time.

Martine told The Pat Kenny Show the best way to save money is to act now.

“To get a quote or to find out if you can save, the key is to understand what rate you are currently at.

“There are many websites, including ours like doddl, but also CCPC.

“Within two minutes of visiting this site, you’ll see what other rates are available for your mortgage amount, your loan-to-value ratio.

“And then there’s an application process to switch mortgages.

“This is where you need advice, you need someone to hold your hand”.

She said while it can be daunting for some people, it’s also a burden for lenders.

“Lenders have an obligation to ensure that if you switch mortgages, it is still affordable for you.

“So they’ll be looking for your income documents, they’ll be looking for your payslips.

“But relative to the amount you can save – particularly again in today’s environment where most customers are trying to lock in lower rates for longer to protect against an interest rate hike – it will be drastic. time well spent.

“It’s really important now that mortgage holders take action to avoid unnecessary repayment hikes and consider switching mortgages.

“Or look to see what other rates are available from their own lender.”

She said that while rates were rising, people had time.

“If you look now, there is a window of time before rates start to rise.

“But this is just the beginning…we are headed for a timeline of sustained interest rate hikes.

“So it’s not just that we now have a small window: it’s to act now, but to be aware that rates will go up in the future.

“So what’s best for you and your household, how can you ensure repayment security? And that’s really to be solved – and solved in the medium to long term.”

Main image: Composite file photo shows a calculator in the shape of a house on euro banknotes and a mortgage finance statement. Picture by: Nancy Beijersbergen/Kalki/Alamy Stock Photo

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