{"id":25471,"date":"2022-03-14T09:19:00","date_gmt":"2022-03-14T13:19:00","guid":{"rendered":"http:\/\/irishexaminerusa.com\/wp\/?p=25471"},"modified":"2022-03-14T12:21:53","modified_gmt":"2022-03-14T16:21:53","slug":"analysts-suggest-that-mortgage-interest-rates-set-to-rise-in-ireland","status":"publish","type":"post","link":"https:\/\/irishexaminerusa.com\/wp\/?p=25471","title":{"rendered":"Analysts Suggest That Mortgage Interest Rates Set To Rise In Ireland"},"content":{"rendered":"\n
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Mortgage interest rates may be set to rise, according to an expert, after ICS became the first provider to increase its fixed rates.<\/p>\n\n\n\n

ICS Mortgages has announced a rate increase on all of its fixed mortgage rates with immediate effect.<\/p>\n\n\n\n

The rises are a result of the increased cost of funding from the capital markets on which ICS is reliant.<\/p>\n\n\n\n

Martina Hennessy, managing director of mortgage advice company doddl.ie, said: \u201cAfter experiencing mortgage rate decreases for a number of years, the uplift by ICS Mortgages is a reminder that we are in a low rate environment, with mortgage rates the lowest they\u2019ve been for over 12 years.<\/p>\n\n\n\n

\u201cUpward pressure on funding costs could result in other lenders also increasing rates in the not too distant future.<\/p>\n\n\n\n

\u201cThese rate increases, while unwelcome, are reflective of volatility in global capital markets on which ICS, as a non-bank lender, are reliant for funding.<\/p>\n\n\n\n

\u201cThe current low rate environment plus rising home values present an opportunity for mortgage holders to lock in lower rates and safeguard against the rising cost of living in general.<\/p>\n\n\n\n

\u201cSome 98 per cent of doddl.ie clients are fixing their mortgage, with fixed rates currently lower than variable ones.<\/p>\n\n\n\n

\u201cPurchasers value the security over repayments that fixed rates provide and switchers tend to have a strong loan to value so can lock in some of the really low fixed rates on market, which start at 1.95 per cent.\u201d<\/p>\n\n\n\n

ICS Mortgages specializes in mortgages for public sector workers.<\/p>\n\n\n\n

The increase of 0.2 per cent on ICS\u2019s three-year fixed rate up to 90 per cent finance results in an increase in repayments on every \u20ac100,000 borrowed over a 30-year term of \u20ac11 per month.<\/p>\n\n\n\n

The average first-time buyer mortgage drawn down last quarter was \u20ac247,790, so the increase would result in a \u20ac26 per month increase in mortgage repayments.<\/p>\n\n\n\n

\u201cEven with new rate increases ICS still remain competitive relative to some of the pillar banks, with three-year fixed rates ranging from 2.25 per cent to 2.55 per cent and five-year fixed at 2.4 per cent to 2.69 per cent,\u201d Ms Hennessy added.<\/p>\n\n\n\n

\u201cThis compares to whereas the pillar banks offer these rates at up to 3 per cent.\u201d<\/p>\n\n\n\n

The differential between the highest and lowest rate on market now stands at 2.55 per cent, which represents a potential saving of \u20ac135 per month for every \u20ac100,000 repaid over a 25-year period.<\/p>\n

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