Fixed Rate Mortgage Donegal

Fixed Rate Mortgage Stick or Twist

Is a fixed-rate mortgage the way forward? Not always…

There are a number of things to consider before you decide to stick or twist with your mortgage.

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Is there a fee for getting out?

Fixed Rate Mortgage Donegal

If you’re on a fixed rate at the minute, you need to check in with your lender to see is there a fee for getting out. Secondly, ask what will they offer you, and then speak with a mortgage broker and see what does the market say, what can you get in the open market and is your current provider providing a comparable product? If not, then switching providers could be the way to go. It’s not always the way to go, but it could be the way to go.

What if I’m currently on a variable rate mortgage?

Fixed Rate Mortgage Donegal

It will depend on what your variable rate is. The variable rates themselves haven’t increased with all lenders yet. The tracker rates have, but variable rates have not. So again, check in with your lender, see what they’re offering, check in with a broker, a good mortgage broker, see what’s on the open market and see what you can get and see them.

Do you want to stay with the current provider or do you want to switch providers altogether to get your fixed rate? Is it a good idea to fix? Yes, for most people, it is at the minute BUT you do need a lot of information before you take that decision.

What if I’m currently on a tracker mortgage?

Fixed Rate Mortgage Donegal

The big question, and one that’s worrying allot of people is if you have a tracker mortgage, should you now fix? And the answer to that is not always.

So, a couple of things that you need to do here is:

1) Speak with your current provider. Two questions that you’re going to ask them

  1. a) What are the fixed rates they can offer you? And
  2. b) if you now fix for a period of time, will they re-offer the tracker to you when that fixed rate is over?

Some lenders will but most lenders won’t. It will greatly depend on whether that option was on your loan offer when you took out your mortgage.

But this is a very important question. Will they give you back the tracker if you choose to go into a fixed rate at this point? If they don’t give you back the tracker, then you consider very carefully whether you want to move out of your tracker rate mortgage altogether.

2) Take advice. Pay for advice. If you’re not paying your mortgage broker for advice, the mortgage broker more than likely will only deal with and offer advice on lenders that pay them commission. You have to consider, if they are not charging you for advice, are they trying to sell a product, that is a mortgage switch, or are they giving you advice?

Advice is key here. Switching is not always the right idea. Moving into a fixed rate isn’t always the right idea. Even though everybody tells you at the minute it is.

For the majority of people, probably it is the right move, but seek advice guys. Take your time. Speak with a good mortgage broker, sit down and have a chat. Talk to your existing lender as well. Get all the information which will help you make an informed choice.

Any questions on the fixed rate or variable rate mortgage? We’re here to help, guys. Give us a shout.

Any other questions, queries, or concerns, don’t hesitate to give us a call.

If you have questions or need advice on Sticking or Twisting on a Fixed rate Mortgage, call 074 9103938 or email now

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