Alison Fearon from Switcheroo.ie mortgages discusses some of the most commonly questions asked about the end of fixed term mortgages.
Is your fixed rate mortgage term ending? Wondering what your options are? Do not panic! There are plenty of options for you whether your fixed rate has already come to an end or will do the future.
What happens at the end of a fixed term?
When you enter a mortgage contract, there is a large chance that you opted for a fixed term product. These products were popular because they tended to be lower than variable rates, provided certainty on monthly payment and avoided rate changes if interest rates rose. They vary in terms of length, but the range is between 1 to 10 years. After the agreed upon period has ended, you will roll onto a follow-on variable rate which can be increased at any time.
Many customers who took out a mortgage over the last few years are now rolling off their fixed rate and are faced with a much higher interest rate environment. So here we ask and answer the most common question raised by our customers.
Can I extend my fixed rate?
No is the short answer. At the end of your fixed rate term you will roll off onto another product and rate.
If I think rates will continue to rise, can I switch before the end of my fixed rate period?
Yes, you can. This is common misunderstanding of fixed rate products; you can break out of the contract but it is possible to that there is a charge for this. Check with your current provider to find out how much this is if at all.
What are my options?
If you are coming to the end of your fixed mortgage term, you real only have two options: stick or switch. To consider this option properly you need to find out what alternatives are available to you in the market by talking to an advisor at Switcheroo or check our calculators. When you have considered the full market available it is possible that sticking with your current provider and asking for a fixed product is the right answer but always best to check for alternatives.
What are the solicitors fees for switching a mortgage?
To switch your mortgage at the end of your term, a solicitor is required to transfer the title deeds. The fees can vary but in general are around €1500 - €2500. Luckily you may not have to bear the brunt of this as there are plenty of cashback deals offered by lenders to cover this.
If you are coming to the end of your fixed term and want to switch, be sure to get professional advice and register at switcheroo.ie
Panda capital Limited T/A Switcheroo is regulated by the Central Bank of Ireland.
