Bank of Ireland has just announced that it will be increasing interest rates for a number of mortgage and deposit products. The new rates will increase by 0.75% for fixed rates on new mortgages, and an additional 0.5% for existing customers who are coming to the end of their fixed rate period and are seeking to re-fix their mortgage, or tracker rate or variable rate customers who wish to move to a fixed rate. This news is sure to have an effect on Irish homeowners, so lets take a closer look at these changes.
How Will This Affect Homeowners?
For homeowners with existing mortgages, this increase in interest rates could have a significant impact on their monthly payments. If you are looking to take out a new mortgage, you should know that the higher interest rate may make your loan more expensive in the long run. It is important to understand how your particular type of mortgage works before making any decisions regarding refinancing or taking out a new loan.
It is also important to keep in mind that Bank of Ireland is not the only lender increasing its fixed-rate mortgages; AIB and Ulster Bank are also raising theirs. With the current economic climate being what it is, it is likely that other lenders may follow suit in the near future as well.
What Can I Do To Protect Myself?
If you are considering refinancing or taking out a new loan, now may be a good time to do some research about different types of mortgages and lenders available in your area. You should also make sure that you understand all the terms and conditions associated with any loan before signing any documents or agreeing to anything. Finally, it may be worth talking to a financial advisor about your options so you can decide what type of loan best suits your needs and budget.
Its always important to stay up-to-date with news about interest rates because even small changes can have large impacts on your finances – particularly when it comes to mortgages! We recommend doing some research into different types of loans available and speaking with a financial advisor if possible before making any big decisions related to debt management or taking out a new loan. Remember, knowledge is power! So arm yourself with information and be prepared when it comes time for major life financial decisions like getting a mortgage or refinancing one.