Thousands emerge from fixed-rate mortgages with non-banks facing rate hikes

A two-tier mortgage market will see thousands of householders hit with repayment hikes of up to 3.5 per cent as they emerge from fixed rates with some non-bank lenders this year.

The doddl Mortgage Switching Index shows that while some pillar banks have reduced their rates by up to 1 per cent, non-bank lenders are stuck at the height of the market due to different funding models.

It means mortgage holders with these institutions could face repayment rates of over 6 per cent when they exit their fixed arrangement.

There has been a recent surge in switching, driven by the downward movement in mortgage interest rates, with approvals up 24 per cent annually to the end of June.

The Q2 doddl.ie Mortgage Switching Index reveals a €7,200 difference in annual payments between the highest and lowest mortgage rates currently available, highlighting a significant opportunity for homeowners to save by switching.

With standard rates ranging from 3.6 per cent to 6.9 per cent, homeowners could…

We’ve summarized this news for a quick read. If you’re interested, you can read the full article here:

Breakingnews.ie