mortgages | irish mortgages and ECB interest rate rises

Mortgage Interest Rates have taken another hike up to a new base rate of 4% as of two weeks ago. This will mean that all mortgages on a variable rate and all mortgages on a tracker rate will now cost more per month than they did previously. The difference will be about €21 per hundred thousand borrowed.

Given that the average house price in dublin is now over four hundred thousand that equates to mortgages being – for first time buyers in particular who would not have a low loan to value – about €80 more per month.

This is the eighth interest rate rise since december of 2005 so mortgages are getting more expensive almost every quarter. For some people this is adding up to an extra €650 per month compared to what they were paying for their mortgage this time two years ago.

Mortgages, much like any other form of credit such as personal loans or credit cards are affected every time the ECB (european base rate) goes up or down. Property purchases were much more affordable when …

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Find out how much you can borrow

Your current income (which includes commission, bonuses, overtime – i.e. any additional money that is subject to tax) will determine how much you can borrow. Some lenders calculate borrowing ability by a straightforward multiple of your income while others will work out your net disposable income and then allow you borrow a percentage of that. There are many variables involved in calculating your approval amount, your best bet is to apply for Approval In Principle through your broker.

100% finance has recently been introduced by several leading mortgage lenders, which means therefore that a deposit is no longer required for First time buyers* and 100% of the entire purchase price can be arranged by Irish Mortgage Brokers.

(*) Subject to certain lending criteria, terms & conditions apply.

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