In a normal banking environment, rates are tiered from the lowest, Variable, to progressively higher Fixed Rates over time reflecting the "security" of the longer term fixed option. Right now, with the exception of AIB, the inverse is the case. Variable Rates as high as 4.5% persist, with the same institution offering Fixed Rates as low as 3%. By far the standout Fixed Rate available is Ulster Banks 2 year 2.3% rate - their Variable Rates range from 3.6% to 4.4%. So, whats happening? Nothing other than the clearest indicator from Banks where they are expecting rates to go. There are two forces at play aside from the usual jitters 1. Potential Government intervention on rates. Supposedly FF have bill prepared to level Mortgage playing field, get rid of up-front gifts etc. There is widespread support for some form of action to lower rates. 2. New entrants to the market. Seemingly a number queued up in Central Bank gagging to get in here and enjoy supernormal margins to the rest of Europe.
Either way, there is a lower interest rate environment on the way. If opting for a Fixed Rate, take advice. Particularly over the longer term it may spell a time looking over the wall at those on Variable Rates and wishing! How low can they go, 2% seems a nice number, I'm predicting we will see it soon, certainly in 2019.
I am not a Property Expert, but I can introduce you to one.
First though, let me give you two firm opinions I have on Property.
The first is an old adage, it’s about Location, Location, Location. Holds true in EVERY circumstance. Whether you are buying a starter home, or an investor, never buy a property you are not comfortable with. If it does not feel right it’s probably with good reason. A property in an improving area, with amenities not yet built, near the next stage of a transport system, too small too soon…we can trade up to something better,later. There are too many people trapped in a property they hate.
The second concerns where property fits as an investment. The more easily an investment asset is reconverted back to cash determines its duration as an investment vehicle. AndProperty is deemed long term. How long is that? Minimum 5 years, but some consider a more prudent estimate is 7 years.
When deciding on a property, its suitability has to be for that term. Do not be duped by a stop gap property just to get on the Property Ladder. Again, too many people trapped.
Some have rented the unsuitable property, and are renting themselves a larger property, and no prospect of change as spare money does not exist.
And the Property Expert? You will not need a mobile phone, tablet or laptop to contact them..just a mirror. Yes, you are the Expert. Only you can apply your heart and mind to a
property. Does it feel right, and does it make sense... for you. #PatFlemingMortgages
Mortgage Applicants often run into many different problems from a wide range of sources. The Right First Time service mitigates this & ensures these potential problems are avoided completely. Let's use the example of credit card companies as an example of prospective problem areas...
Credit Card Companies have a habit of encouraging usage of your card by proactively increasing your limit over time. Some applicants are unaware of their limit, but sure of their balance.
The snag is though that in many instances Mortgage assessment involves reducing Net Disposable Income by a percentage, probably 10%, of the limit of the Credit Card, not the balance.
So a little used Credit Card with a high limit can have an impact on eligibility, get your limit reduced if you are not using it before making your Mortgage application!
This is just a single example of a multitude of possible areas you'll run into bother over when applying for your mortgage, and the bank isn't going to highlight these before they take you in for your application. Going into a meeting blind will often see your application rejected - therefore it's important to get professional advice & guidance before arranging a meeting. Get your mortgage Right First Time!