DON’T GIVE UP YOUR TRACKER MORTGAGE!

The news has has several stories recently about banks contacting clients and asking them if they would like to come off their tracker mortgage and instead go on a fixed rate or even a variable rate. The assertion is that if you have a fixed rate during a downturn that you are ‘protected’ from changes in the ECB rate changes.

That is true, but you are also protecting yourself from upside advantage. In a nutshell, during a downturn there are some monetarist moves that Central Banks will make, such as dropping rates to increase the movement of money in an economy, if you are on a fixed rate you don’t get the rate reduction and the outlook for at least the near future is that rates are going to come down. On those grounds alone you would have to question the rationale of a …

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DON'T GIVE UP YOUR TRACKER MORTGAGE!

The news has has several stories recently about banks contacting clients and asking them if they would like to come off their tracker mortgage and instead go on a fixed rate or even a variable rate. The assertion is that if you have a fixed rate during a downturn that you are ‘protected’ from changes in the ECB rate changes.

That is true, but you are also protecting yourself from upside advantage. In a nutshell, during a downturn there are some monetarist moves that Central Banks will make, such as dropping rates to increase the movement of money in an economy, if you are on a fixed rate you don’t get the rate reduction and the outlook for at least the near future is that rates are going to come down. On those grounds alone you would have to question the rationale of a …

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Questions to ask a Mortgage Broker

With the Irish Property Market entering a new phase it will be vital, if you are in the market already or planning to enter it, that you have a few key professionals on side. The people you will ideally work with are a Solicitor, a Broker, and an Estate Agent. In order to separate the wheat from the chaff you should be armed with a few questions. I have to warn you, some of the questions I’m posing here may be interpreted as being ‘rude’ but there are good reasons for asking them and you should mention the reasons you ask if any of the professionals you are speaking to seem to get offended. The best defence in the current market is a good team.

I’ll start with questions to ask a Mortgage Broker because this is the one I know the most about! Over half of the mortgages done in the Irish property market are placed by brokers, and while there are those who are extremely savvy in the area of finance and who don’t need a broker, there …

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