Here’s Why You Should Break Your Fixed Rate Mortgage Now
If your fixed rate is due to run out in the next couple of years and you wait until the end of your fixed term it could cost you.
That’s why we currently recommend you should consider breaking fixed mortgage rates and re-fixing.
Due to rising interest rates there is now a high chance that you will roll on to a much higher variable rate than today and have limited options to fix at a lower rate when you do.
Variable rates now are around 3.5% with the Central Bank lending to the banks at 0%. If the Central Bank goes to 2.5% or more in the next 2 years as the markets are predicting, the lenders will pass that on, meaning variable mortgage rates will rise to around 6%.
The average outstanding mortgage in Ireland is €200,000 and the average term people have left is 15 years. That makes the average mortgage repayment about €1,400 a month. So for the average customer a 2.5% increase is about €250 extra on their monthly repayment.
At the moment fixed rates start from 1.95%, but they are also on the rise and are unlikely to be as low by the time you come off your current fixed rate.
That’s why we are now advising anyone with less than two years left on their current fixed rate to look at switching and re-fixing on a long term low rate.
Don’t I have to Pay a Penalty Fee if I Switch in my Fixed Period? – Breaking Fixed Mortgage
You may think there are big penalties for switching before the end of your fixed rate period, but EU legislation introduced in 2016 has actually capped the amount banks can charge for breaking early.
In most cases it is free or almost free to break early and under the same law banks now have to provide you with a calculation of the fee.
You can then take this to a broker to see how much over the break fee you will save by breaking fixed mortgage now over staying in your fixed rate and risking future increases.
The actual calculation under the legislation (European Union Consumer Mortgage Credit Agreement Regulations 2016) is
Break Fee = (Original Interbank Rate – Current Interbank Rate) X Remaining Time in Fixed Period X Remaining Value of Mortgage [1]
It seems that even if break fees could be applied under the calculation both Ulster and KBC are currently waiving all fees as we are yet to see a switcher get charged by either bank.
With interest rates rising and due to rise further the current Interbank rate will rise. This means any remaining fees are likely to fall completely away by the time anyone starting a switch now is fixing their new rate.
How Much Could I Save by Breaking and Re-fixing? – Breaking Fixed Mortgage
For example one moneysherpa.ie customer completed their switch last week by breaking their fixed mortgage term.
They were on KBC’s 2.6% 5 year fixed rate and saved €8,896 over the rest of their term. They had 1 year to run on their fixed rate and 15 years left on their remaining €200,000 mortgage.
When they switched to Avant Money’s 2.4% 15 year fixed rate they reduced their monthly payments by €49 a month which is €8,896 over the rest of their mortgage.
KBC charged no breakage fee, but most importantly by switching they have now guaranteed their repayments can not rise over €1,330 a month for the rest of their mortgage term.
Mark Coan from moneysherpa.ie said “The long term mortgage rates that are currently available could turn out to be today’s equivalent of the tracker.”
“Being able to cap your repayments for the rest of your term is a no brainer for most and folks may look back with regret if they don’t jump on these deals while they are still out there.”
“That’s why we are recommending breaking fixed mortgage rates right now”
moneysherpa turns one today, which set me thinking.
What did I learn in our first 12 months?
Mapping out our first year
It’s been a very big year for us, we have over over €30 Million of mortgages in our pipeline, we’ve started to make headway into other finance products and we have big B2B partners now secured.
To be frank, I’m surprised at how far we have come in such a small space of time.
That’s just the tip of the iceberg though, looking back I feel I’ve been learned more in the last 12 months than in the previous 20 years of my career. Here’s my key takeaways from a whirlwind year.
1) Ask and People Will Take A Chance on You
The level of trust and support we have had from Investors, Suppliers and Employees has been overwhelming and without it we simply wouldn’t have been able to get moneysherpa off the ground.
Investors – Based on nothing more than a good story, we got substantial backing from key angel investors and the Local Enterprise Office to put the fundamentals to make the business a success in place.
Suppliers – A number of key suppliers agreed to discount their rates or even work for free for us based on relationships and the promise of future business.
Employees – Most of all we found some rock star employees who were prepared to give up their corporate pay check to play a key role in building something bigger.
2) It Sure Is Scary Being Out On Your Own
Yes there is no one to interfere with your decisions.
But, that means there is absolutely no one else to blame when those decisions backfire.
Plus the stakes are super high. These are your customers, your employees, your investors and almost certainly your life’s savings all bound up in the success or failure of the company.
This all makes you all too aware of how fragile running a start up actually is.
You are always vulnerable to changes in the market, changes in regulation or your own miscalculation.
Performing the high wire act of balancing the investments you need to make to fuel future growth against your current cashflow is probably the scariest thing of all.
3) Start Up Time is ‘Lumpy’
Unlike corporate time, where your work rhythm is marked out by quarterly results, management reports and the regular patterns of corporate life, start up time operates in fits and starts.
There are incredibly intense bursts of activity when you are building the next technology drop, launching a new product or expanding the team.
But, when you deliver on that activity your business looks so different than it was before, you have no choice but to take the time to get to know it all over again.
Moving onto the next thing before you do this will almost certainly mean you make a wrong move. This means there are times when there is literally nothing to do, but wait and think.
I’ve learned to enjoy it and resist the urge to do something for the sake of it.
In my view thinking is generally underrated.
What’s Next?
The last year has been nothing like any other part of my career.
I realised I can only really compare founding a start up with my experience of being a parent.
Not having a clue what you are doing
Never sure you are making the right decisions
Constantly worrying what happens next
Mostly though, being incredibly proud that you are playing a part of shepherding something new and exciting into life!
A Bank of Ireland Mortgage has always been a popular choice for Irish home buyers, but is a BoI mortgage good value? In our Bank of Ireland Mortgage Ultimate Review – Ireland 2022 we give you the inside track on all things BoI mortgage and what your options and alternatives are.
With Bank of Ireland being one of the Irish ‘pillar banks’ getting a BoI mortgage has always felt like a safe mortgage option for many.
Digging a little deeper though Bank of Ireland Mortgage rates right now are the highest in the market and there are better options for most people to choose.
As a bank that has to support a substantial branch network and expensive legacy tracker mortgages, BoI have the highest rates in the market, with only PTSB and EBS coming close to the banks high mortgage rates.
In the introductory fixed rate period you will end up paying around 1.5% more than with some other lenders and after that period the difference is even larger with Bank of Ireland charging rates of 3.7%-4.1% on their ‘follow on’ variable rates compared to 2.03%-2.25% with others.
Bank of Ireland do offer more in cash back, a once off payment when the mortgage is drawn down, than most other lenders, but what they give in cash back is way less than what they take with the higher introductory and follow on interest rates.
The difference in interest rates might not seem that much at first, but it really mounts up over the course of a mortgage term.
Read on to get all the facts and figures on how much seemingly cash back offers really cost you and what better alternatives are available.
You can check out how a Bank of Ireland mortgage compares to others using our calculator here.
BoI Mortgage Rate and Product Overview – Bank of Ireland Mortgage Review Ireland 2022
BoI Mortgage Product
Bank of Ireland are selective about what they lend for.
They offer residential mortgages of more than €100,000 only, including first time buyers, home movers, buy to let and switchers.
Bank of Ireland also offer staged payment self build mortgages.
They do not offer mortgages to people moving to Ireland from abroad.
They will also do top up mortgages for home improvements.
Bank of Ireland Mortgage Approval Credit Policy
Bank of Ireland has a reputation for being pretty flexible when it comes to their credit policy. The higher rates they charge seem to give their credit teams a bit more room to move than most. That said though, if you are have a more shaky or unusual credit history Finance Ireland are also a good option, without the gold plated price tag.
One thing to watch out for though is over recent years the time taken to approve a loan has extended to a couple of weeks a more, which can be a problem if you need your money in a hurry get hold of your dream home.
Unlike Avant Money they will allow you to borrow more than 3.5 times your income if you can show you have sufficient disposable income. These mortgages are known as ‘exceptions’ as they are exceptions to the Central Bank lending limits.
BOI Mortgage Rate
In the 3 year fixed rate mortgage comparison table below the Bank of Ireland mortgage comes out dead last, but unlike some of the other lenders they will give you 2% of your mortgage loan back when you draw down your loan as well as a further 1% after 5 years.
The Annual Percentage Rate Charge (APRC) represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1] You can check out the APRC of all the mortgages currently on the market using our comparison tool here.
The reason the APRC, and therefore the cost of the mortgage, are so high for Bank of Ireland isn’t in fact the cash back element, but the very high follow on rate after the introductory period as you can see in the table below.
Probable follow on variable rates post fixed period based on current variable rates by provider
Bank of Ireland Cash Back
So how does the cash back offer stack up against those super high interest rates?
Cash back can come in really handy to pay solicitor fees etc.. and the first few years after moving in are when you are often most hard pressed financially, so is often tempting. As you can see Bank of Ireland’s cash back option looks like the most generous in the market.
In fact the whole cash back thing is a bit of a rip off in our view, so to be treated with care. A quick example might help illustrate why we think so.
If you take an average mortgage loan of €200,000 over 25 years, at a loan to value of 80% with a PTSB 3 year fixed rate you will pay €1,066.75 on average per month, with Avant Money’s 3 year product that would be €870 a month, €196.75 a month cheaper.
So over 25 years that’s €58,940 less than with BoI in interest.
The cash back on the other hand is worth
2% of the €200,000 = €4,000
1% of the €200,000 after 5 years = €2,000
A total of €6,000
That’s over 52 grand more expensive, taking massive amounts of cash out of your pocket in repayments.
If you don’t need the cash back to cover legal fees etc.. then we would recommend the Avant Money or ICS mortgages, however if you do then KBC are the best of the rest. Based on current rates they offer a lot better value than EBS, Permanent TSB and Bank of Ireland which also offer cash back.
Pro’s & Con’s – Bank of Ireland Mortgage Review Ireland 2022
Pro’s
The best cash back offering in the market
Con’s
Avant Money & ICS offer much better fixed rates
Follow on rates are the highest in the market and will cost you thousands
Recommendation – Bank of Ireland Mortgage Review Ireland 2022
Due to the uncompetitive introductory and follow rates the only reason to get a Bank of Ireland right now would be if you are considering switching multiple times to cash in on the cash back before switching out to avoid the super high follow on rates. We don’t recommend this option though as we have covered in our switching article here.
If you need a cash back option to cover legal fees we would recommend KBC as their follow on rates are much lower. If you can afford to cover the legal fees yourself though, you are better off looking at Avant Money or ICS as the long term savings will out weigh the cash back saving pretty quickly.
If you can get a mortgage with Avant Money, ICS or Finance Ireland that’s a much smarter option than going with Bank of Ireland.
In a Nutshell – Bank of Ireland Mortgage Review Ireland 2022
Bank of Ireland rely on customer inertia and their brand as the oldest bank in Ireland to charge more than any other provider in the market.
If you got platinum levels of service in return then maybe that would make sense, but BoI are actually one of the hardest lenders to deal with, due to layers of unnecessary paperwork and slow turn around times.
Our recommendation is stay away, even if you are an existing customer and might be thinking better the devil you know, it’s not worth flushing thousands of Euro down the toilet in sky high interest payments.
If you can get a mortgage with Avant Money, ICS or Finance Ireland that’s a much smarter option than going with Bank of Ireland.
A Permanent TSB Mortgage has always been a popular choice for Irish home buyers, but is a PTSB mortgage good value? In our Permanent TSB Mortgage Ultimate Review – Ireland 2022 we give you the inside track on all things PTSB mortgage and what your options and alternatives are.
With Permanent TSB being one of the Irish ‘pillar banks’ getting a Permanent TSB mortgage has always felt like a safe mortgage option for many.
Digging a little deeper though PTSB Mortgage rates right now are actually some of the highest in the market and there are better options for most people to choose.
As a bank that has to support a substantial branch network and expensive legacy tracker mortgages, PTSB have the second highest rates in the market, with only Bank of Ireland charging more.
In the introductory fixed rate period you will end up paying around 1.5% more than with some other lenders and after that period the difference is even larger with PTSB charging rates of 3.57%-3.71% on their ‘follow on’ variable rates compared to 2.03%-2.25% with others.
PTSB do offer more in cash back, a once off payment when the mortgage is drawn down, than most other lenders, but what they give in cash back is way less than what they take with the higher introductory and follow on interest rates.
The difference in interest rates might not seem that much at first, but it really mounts up over the course of a mortgage term.
Read on to get all the facts and figures on how much seemingly cash back offers really cost you and what better alternatives are available.
You can check out how a Permanent TSB mortgage compares to others using our calculator here.
Permanent TSB are selective about what they lend for.
They offer residential mortgages of more than €100,000 only, including first time buyers, home movers, buy to let and switchers.
PTSB also offer staged payment self build mortgages.
They do not offer mortgages to people moving to Ireland from abroad.
They will also do top up mortgages for home improvements.
PTSB Mortgage Approval Credit Policy
Permanent TSB are pretty middle of the road when it comes to their credit policy, the Goldilocks of the banking world, not to strict and not too loose.
One thing to watch out for though is over recent years the time taken to approve a loan has extended to a couple of weeks a more, which can be a problem if you need your money in a hurry get hold of your dream home.
Unlike Avant Money they will allow you to borrow more than 3.5 times your income if you can show you have sufficient disposable income. These mortgages are known as ‘exceptions’ as they are exceptions to the Central Bank lending limits.
PTSB Mortgage Rate
In the 3 year fixed rate mortgage comparison table below the PTSB mortgage comes out in 8th place, but unlike some of the other lenders they will give you 2% of your mortgage loan back when you draw down your loan as well as a further 2% reduction on your repayments if you have their Explorer current account.
A fairer comparison then would be to use PTSB’s 4 year rate with no cash back with an attractive sounding 2.25% fixed rate, that way we are comparing apples with apples.
The Annual Percentage Rate Charge (APRC) represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1] You can check out the APRC of all the mortgages currently on the market using our comparison tool here.
Comparing the 4 year non cash back offer PTSB does move up to 4th place, but that’s mainly because ICS, Finance Ireland and KBC only have 3 & 5 year fixed rates. In fact PTSB only beats the other two lenders EBS and Bank of Ireland as their 4 year products still have cash back.
The reason the APRC, and therefore the cost of the mortgage, are so high for PTSB isn’t in fact the cash back element, but the very high follow on rate after the introductory period as you can see in the table below.
Probable follow on variable rates post fixed period based on current variable rates by provider
PTSB Cash Back
So if the non cash back offer isn’t a great deal, how does the cash back offer stack up?
Cash back can come in really handy to pay solicitor fees etc.. and the first few years after moving in are when you are often most hard pressed financially.
PTSB also offer a 2% discount on each repayment for the next 5 years if you have the Explorer current account, but this discount isn’t worth very much in real terms.
In fact the whole cash back thing is a bit of a rip off in our view, to give a quick example.
If you take an average mortgage loan of €200,000 over 25 years, at a loan to value of 80% with a PTSB 3 year fixed rate you will pay €1,019 on average per month, with Avant Money’s 3 year product that would be €870 a month, €149 a month cheaper.
So over 25 years that’s €44,788 less than with PTSB in interest.
The cash back on the other hand is worth
2% of each repayment until 2027 = €1,223
2% of the €200,000 = €4,000
A total of €5,223
That’s over 39 grand more expensive….
If you don’t need the cash back to cover legal fees etc.. then we would recommend the Avant Money or ICS mortgages, however if you do then KBC are the best of the rest. Based on current rates they offer a lot better value than EBS, Permanent TSB and Bank of Ireland which also offer cash back.
Due to the uncompetitive introductory and follow rates the only reason to get a PTSB Mortgage right now would be if you are considering switching multiple times to cash in on the cash back before switching out to avoid the super high follow on rates. We don’t recommend this option though as we have covered in our switching article here.
If you need a cash back option to cover legal fees we would recommend KBC as their follow on rates are much lower. If you can afford to cover the legal fees yourself though, you are better off looking at Avant Money or ICS as the long term savings will out weigh the cash back saving pretty quickly.
In a Nutshell – Permanent TSB Mortgage Review Ireland 2022
Although PTSB have led the mortgage market on value in the past, right now the new market entrants are a much better deal.
True they are still much cheaper than Bank of Ireland, but even if you don’t want to use one of the new lenders AIB or their broker arm Haven offer much better value right across the board.
The reality though is the new lenders Avant Money, ICS and Finance Ireland who are able to compete without expensive branch networks or tracker mortgages are a much better bet. If you can go with one of these lenders you should.
With Ulster bank withdrawing from the market and selling up, what does it mean if you have or are thinking of getting a Ulster bank mortgage? In our Ulster bank Mortgage Ultimate Review – Ireland 2022 we give you the inside track on an Ulster bank mortgage and what your options are.
Ulster Bank parent Natwest has decided it is pulling out of the Irish market, this means Ulster bank will be no longer offering mortgages to new customers.
So you might be thinking, what happens to my Ulster Bank Mortgage?
Although it’s not all done and dusted yet it looks very likely that Ulster Bank will sell their on-going mortgage business to Permanent TSB.
So don’t panic, if you have a mortgage with Ulster Bank already already PTSB will have to honour your existing terms.
Where we could see changes though is in the rate existing customers go to at the end of their fixed period. Permanent TSB have the second highest rates in the market and many fear that longer term current Ulster Bank mortgage holders will see their rates rise from where they are today.
Avant Money are offering €1,500 upfront until the 31st of March 2022 for anyone wanting to make the switch to them. This should cover both the legal and valuation costs of the switch with some change to spare.
moneysherpa offers an all in switching legal package for just €1,200 and a typical valuation is around €200.
If you come off your fixed rate with Ulster Bank and are worried that PTSB are going to hike your rates, you still have the option to switch to someone else at that point. You can check out how your Ulster Bank mortgage compares to others using our calculator here.
Read on to find out more about your Ulster Bank mortgage and the other options for a great rate and easy approval.
Ulster Bank Mortgage Rate and Product Overview -Ulster Bank Mortgage Review Ireland 2022
Ulster Bank Mortgage Rate
Our handy table shows what rates you will pay with each of the lenders when you come off your fixed rate, this is know as the ‘follow on’ rate.
As you can see Ulster bank have some of the highest rates interest rates in the market and the bad news is the bank that looks to set to buy them PTSB is one of the few with even higher rates.
Probable follow on variable rates post fixed period based on current variable rates by provider
The follow on rate is the rate that drives the Annual Percentage Rate Charge (APRC) which represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1] You can check out the APRC of all the mortgages currently on the market using our comparison tool here.
If you have a current account with Ulster Bank you may be on their ‘loyalty’ product which has a rate around 0.3% lower than the Ulster Bank rates shown above. Even with that discount though you would save by switching to the six cheaper providers shown in the table.
If you have an Ulster bank mortgage now is a good time to switch, rates are at all time lows. An average size switcher can expect to save at least €20,000 by switching.
Recommendation – Ulster Bank Mortgage Review Ireland 2022
Ulster Bank have one of the most expensive variable rates in the country and with their sale to PTSB underway those rates are unlikely to get any better, in fact they may be about to get worse.
The good news though is that with the entry of non bank lenders ICS, Avant Money and Finance Ireland, rates are at historic lows. This means you can save over €20,000 on average by switching to another provider.
Switching legal fees are currently around €1,500. Even better if you use moneysherpa to switch and take up their all in switching deal for €1,200 including VAT you will maximise your savings.
It’s very hard to make a case for staying with Ulster Bank unless you are locked in on one of their fixed rate products, even then ask them about the breakage fee. Sometimes due to EU consumer law there will be no fees at all and you can still switch to a better rate with another bank.
Working with the right mortgage brokers can make a huge difference, on an average sized mortgage the cost can vary by over €111,000 depending on the deal your broker recommends (Loan of €240,000, 90% LTV, over 35 Years).
In this article we give you the rundown on what to look for to pick the best mortgage brokers.
As someone who ran one of the biggest mortgage lenders in the country at PTSB, I was always surprised that only around half of applications were assisted by brokers. In the UK almost 80% of all mortgages applicants work with mortgage brokers.
Using mortgage brokers to help with your mortgage has many advantages, independent advice, wider choice of rate and having an expert with you every step of the way.
A mortgage broker though can come in many shapes and sizes. Some are tied to just a few lenders, some charge for advice, some don’t stay with you on the home buying journey.
The mortgage brokers you choose can make a real difference to your finances, your home buying journey and your stress levels. That’s why we have covered the ins and outs of choosing the best mortgage brokers for you below, helping you make the right decision.
We recommend moneysherpa’s own in-house mortgage broker team, the mortgage sherpas, as the best way to get a mortgage. They are free, independent, comprehensive, with a best rate lifetime guarantee and the best online enabled service.
You can get more information about broker options locally here.
Read on to get the lowdown as to what separates a great mortgage broker, from a good one.
Overview, mortgage brokers
Working with the right broker can make a huge difference, according to the property price register the average house in Ireland is going for €272,000 (data as of March 2021 [1]), a typical 90% mortgage is therefore over €240,000.
The average cost of a mortgage in Ireland over a term of 35 years can be anywhere between €371,800 with Avant Money upto €483,304 with Bank of Ireland, a difference of over €111,000.
There are 5 key things to look out for when picking mortgage brokers, they are
Are they free to use? Mortgage Brokers get paid by the lender on completion of the mortgage, so shouldn’t need to charge you additional fees.
Do they use the best online tools to take the pain out of the paperwork? Do they offer online upload and e signature.
Are they comprehensive? Do they work with all the main banks and four broker exclusive lenders including Avant Money and ICS who currently have the best rates on the market.
Do they offer support after your mortgage is completed? Rates are always changing does the broker monitor the market for better rates you can switch to.
Do they offer the best service? Do they have a dedicated QFA mobile number, direct video diary access, ongoing support ?
Not all brokers are experienced, independent or have a comprehensive range of lenders, but there are plenty of brokers that are up to snuff.
Key service features, mortgage brokers
1. Free to Use, mortgage brokers
There is no difference in rate between going directly to your bank or via a broker. This is because brokers are paid by the lenders out of the fees that the lenders would otherwise splurge on marketing.
This means that going with a broker who doesn’t charge any application fees is 100% free to you. Sounds almost too good to be true, but that’s just the way the broker model works in Ireland.
Although all mortgage brokers receive a commission from the lenders, most of the larger brokers also charge the client directly, with typical fees ranging from €100-€500.
This is to help cover the cost of processing the mortgage with the lenders, which can be costly and time consuming for the broker. WIth paper shuttling back and forth between the broker and the bank.
In contrast the some newer brokers have invested in advanced technology platforms to lower the cost of processing the mortgage, so they don’t have to pass on this cost to customers. They are therefore paid fully out of the 1% commission received from the lender.
2. Online Tools, mortgage brokers
Getting a mortgage still requires a lot of paperwork.
In order to protect you in making such a financial commitment there are multiple documents required to be read and signed.
In order to protect the financial system there are ID documents, bank statements etc.. also required.
The right technology can take a lot of the pain out of this paperwork. Look for mortgage brokers with an online upload capability so you can organise your documents easily. A good one will also give you a dashboard so you always know where you are on the journey to getting the mortgage.
Another big help is if you can find a broker who uses e signature. This saves all the bother of printing and scanning or even worse posting documents. Many brokers are now able to complete the whole mortgage journey online.
3. Comprehensive, mortgage brokers
There are four banks and three broker exclusive lenders that offer mortgages currently in Ireland. Most brokers offer three or four lenders on their panel.
Many of the smaller brokers are tied to just one lender and are not able to advise on alternatives. This can make a big difference as not only do lenders have different rates, but also very different lending policies.
ICS for example let public sector workers borrow more than those employed in other sectors, whilst some lenders are more flexible than others in extending credit to some applicants or don’t offer loans for self build etc..
By having an independent broker in your camp they can not only find you the best rate, but also make an experienced assessment of which lender is most likely to approve your application.
For an average mortgage, Bank of Ireland’s lowest mortgage rate of 3.7% APRC costs €57,000 more than Avant Money’s equivalent rate. There are in fact over 20 deals from the other lenders that are better value.
4. Post Mortgage Support , mortgage brokers
Mortgage rates are changing all the time, what may be a great rate one year might not be the year after. Staying on the best rate throughout your mortgage term can save you thousands. So once you have your mortgage how do you make sure you are still on the best rate?
Make sure the broker you choose monitors the market for you after they get your mortgage. A good broker will get in touch with you automatically if there is a deal that would save you money and switch you to that deal. This guarantees you stay on the best rate all the time.
By choosing the right broker you effectively get “mortgage rate insurance”, a guarantee that as rates change in the market you will know what they mean for you and have help to switch if the new deal saves you money.
5. Best service, mortgage brokers
Using a broker beats going direct to a bank hands down, you gain from years of experience working with different lenders and they can scan the whole market on your behalf.
Make sure though that your mortgage brokers are all Qualified Financial Advisors (QFA), authorised by the Central Bank, with at least a few years of experience.
You should also get a dedicated mobile number to contact, plus the option to contact via video calls with flexible hours.
This makes everything more reliable, faster and easier than the approaches used by other brokers and banks.
Alternatives, mortgage brokers
Go direct to the banks
Obviously you can always go to a bank directly for a mortgage, the biggest advantage of this option is they may already have access to your transaction history so you don’t have to dig out your bank statements.
With open banking even this advantage has recently disappeared, based on new legislation to help make banking more competitive, moneysherpa and some of the other larger brokers can now access your bank transactions on your behalf if you choose.
The downside of going with your bank is you are practically guaranteed that you will pay thousands more than you need to for a worse level of service than via a broker.
Go to your local mortgage brokers
If you want the help of a broker, but want to sit down face to face rather than over a video call then going through a local mortgage broker is an option.
As local brokers tend to be smaller though they usually don’t have as many lenders to choose from or as much pull with the lenders. Unless they charge additional fees or are missing the leading lenders from their portfolio, they will usually have access to the same rates as the bigger brokers.
Obviously though they won’t have the same rate guarantees or technology tools as the new wave of brokers like moneysherpa.
Go to another online broker
There are a number of nationwide brokers in the market who could also be an option. These usually have the advantage of being independent and having a good selection of lenders available. Some also have online tools to help ease the process.
The big drawbacks are they aren’t usually free to use, charging between €100 and €500 a pop and they don’t offer the lifetime best rate guarantee available with moneysherpa.
Daire McConnon (QFA), mortgage sherpa team lead
In a nutshell, mortgage brokers
Using a mortgage broker has many advantages, independent advice, wider choice of rate and having an expert with you every step of the way.
Working with the right broker can make a huge difference, with the cost of the mortgage over 35 years varying by over €111,000 depending on the deal your broker recommends.
moneysherpa’s in house mortgage broker service, the mortgage sherpas, is the best way to get a mortgage. Free, Independent, Comprehensive, with a lifetime best rate guarantee and best online enabled service.
The two things that make the mortgage sherpa offering really stand out from the crowd however are:-
The lifetime best rate guarantee. You will always get the same deal as if you went direct and your mortgage deal is constantly monitored to switch you to the best possible rate for the lifetime of your mortgage.
The easy to use digitally enabled service. The sherpa fills in the paperwork for you on a videocall and you simply digitally upload all your documents and signatures. Making the process a whole lot easier and faster.
If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.
Haven Mortgages are owned by AIB, Ireland’s second largest bank. In our Haven Mortgages Ultimate Review – Ireland 2022 we will give you the inside track on a Haven mortgages and the alternatives.
As someone who used to lead the mortgage product team in PTSB, I’ve always considered Haven mortgages as a strong provider essentially offering AIB mortgages through mortgage brokers.
Mortgage brokers usually have a panel of lenders to pick from with the interest rate paid by their client always being a major factor. This means the broker arms of the banks need to offer keen pricing to win broker business and often offer lower rates than the banks themselves.
Haven Mortgages Green 4 Year Fixed Rate mortgage @ 2.15% is the lowest fixed term rate on the market for Loan to Values (LTV) over 80%. Beating ICS by 0.05% and Haven’s owner AIB by 0.1%.
At LTV’s below 80% ICS have the edge offering a 2.1% 3 or 5 year fixed rate
Unlike some other lenders Haven also offer €2,000 – €5,000 cash back when you drawdown your mortgage.
One thing to watch out for though is the follow on rate, this is the rate you will pay after the fixed period. Haven mortgages potential follow on rate is 3.15%, AIB is 3.15% while ICS is 2.7%.
The bottom line is if you intend to switch at the end of your fixed period Haven are a great option with low introductory rates and cash back offers.
The long term cost of the mortgage is often hidden by providers behind cash back offers and introductory rates. Check out our comparison of cash back and rates after the introductory period below.
Haven Mortgages Introductory Rate
Haven Mortgages don’t vary their fixed rates by the ratio of the loan to home value offering one flat rate for all LTV’s. This makes their introductory rate very competitive at the highest LTV band of 80-90%, where their Green 4 Year mortgage is actually the lowest rate on the market.
The kicker is that providers who do vary their introductory rates by LTV, such as ICS or Avant Money, offer better rates for any LTV’s lower than 80%.
Annual Percentage Rate Charge (APRC) calculated on a €100,000 loan over 20 years. APRC represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]
If you aren’t switching your mortgage to another provider the rate you will pay after your fixed period is up is the one that matters most for the overall cost of your mortgage.
These rates are often hidden away by providers pushing the upfront introductory rate or cash back offers.
Haven are in the middle of the pack on follow on rates, offering the best of the bank or bank owned follow on rates. That said, the rates from ICS Mortgages and Avant Money are considerably lower giving them the definite upper hand on best value across the whole term of your mortgage.
Probable follow on variable rates post fixed period based on current variable rates by provider
Probable follow on variable rates post fixed period based on current variable rates by provider
The follow on rate makes a huge difference to the cost of your mortgage. A 25 year €285,000 mortgage for example would cost €399,714 with Haven, €387,574 with ICS and €398,429 with AIB. That makes ICS over €12,000 cheaper over the term of the mortgage.
Even including the €2,000 cash back available on the Haven mortgages green mortgage or the €5,000 available on other Haven rates for mortgages over €250,000 that’s a lot of extra cost.
Haven Mortgages Approval Types
Haven Mortgages are available for First Time Buyers, Next Time Buyers (Movers), Switchers, Self Build and Top Up (Equity Release). They also offer foreign exchange (fx) mortgages that allow people buying from abroad to obtain a mortgage if eligible.
Their Green Mortgage needs a document known as a Building Energy Rating (BER), which essentially is a calculation of how energy efficient your home is. BER certificates are valid for up to 10 years.
The BER measures how energy efficient your home is on a scale of A to G, with A being the most energy efficient your home can be.
You will require a BER rating of at least B3 in order to qualify and apply for a Green Mortgage with Haven.
If you are self building you can’t get a BER rating until the completion of your build, unlike other lenders Haven don’t make a loan offer based on the assumption that your property qualifies for a green rate. This is pretty crazy given that all properties nowadays must have a B3 or higher rating.
This means quite a lot of extra paperwork for Haven compared to other lenders, which might be enough to put you off getting a self build mortgage with Haven.
Haven Mortgages Approval Credit Policy
Haven are in the goldilocks zone for mortgage approvals, with a reputation for not being too tight or too loose.
Our data indicates that approvals are broadly in line with those given at their mothership AIB. Generally their credit approval policy will suit most applicants.
Pro’s & Con’s -Haven Mortgages Ireland 2022
Pro’s
Attractive short term rates @ 80%+ LTV in particular the 4 year Green Mortgage
Cash back of €2,000 to €5,000
Con’s
At LTV’s below 80% ICS and Avant Money have better introductory rates
ICS and Avant Money have better follow on rates around 0.25% better on average
ICS also have more flexible credit terms
Haven’s green mortgage for self builders is a lot of admin hard work
Recommendation -Haven Mortgages Ireland 2022
So Haven mortgages lead the market on the combination of introductory rate and cash back, but they cost a lot more than some providers in the long run.
With switching becoming easier and savings increasing, switching your mortgage every 3 or 4 years now makes a lot of sense. You not only can claim multiple cash back offers you can also lock into low fixed rates each time you move.
If you know you’re are going to switch at the end of your fixed period then Haven Mortgages are a good option, particularly if you have an LTV over 80%. Their 4 year fixed Green Mortgage offers great value in the 4 year term.
However, if you are looking to stay with your provider for longer than the fixed period there are better options available offering introductory rates just as good, but with lower follow on rates.
The non bank lenders Avant Money, ICS Mortgages and Finance Ireland offer the best combination of rates and approval flexibility for most people looking for a mortgage.
Rates with these lenders are typically 30% lower than the banks as they aren’t carrying the cost of supporting tracker mortgage customers.
If you are thinking of becoming a serial switcher Haven should also be on the roster, by signing up for the 4 year fixed you can get a great rate and cash back into your pocket then switch to one of the non bank lenders when your 4 years are up.
If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.
With KBC withdrawing from the market and selling up, what does it mean if you have or are thinking of getting a KBC mortgage? In our KBC Mortgage Ultimate Review – Ireland 2021 we give you the inside track on all things KBC mortgage and what your options are.
Although some coverage might give a different impression although KBC are leaving the market, they are still offering mortgages in Ireland. So unlike Ulster Bank who are withdrawing from mortgages completely, they might still be a lender you want to consider.
So you might be thinking, how come they are still offering mortgages?
Although it’s not all done and dusted yet it looks very likely that KBC will sell their on-going mortgage business to Bank of Ireland. Some industry insiders believe that Bank of Ireland plan to keep KBC as an option for the broker market to help it stay competitive.
So the key question is, what does that mean for future rates if I have or am thinking of getting a product? First don’t panic, if you have a mortgage with KBC already Bank of Ireland will have to honour your existing terms.
Where we could see changes though is in the products for new mortgage customers and the rate existing customers go to at the end of their fixed period. Bank of Ireland have the highest rates in the market and many fear that longer term KBC mortgage holders will see their rates rise from where they are today.
If you are thinking of switching from KBC, Avant Money the market leader, are now offering €1,500 upfront to cover any switching costs you might have.
Despite the looming takeover by Bank of Ireland, we still think KBC mortgages are a good option in certain cases.
They have competitive fixed rates with a cash back offering. For those who need a cash back offering, but don’t want to sign up to super high on-going rates they offer a good middle ground. They are particularly good for switchers as they offer €3,000 upfront.
If you come off your fixed rate and worry that Bank of Ireland are going to hike your rates, you still have the option to switch to someone else at that point. Meaning you can still have your cake and eat it. You can check out how a KBC mortgage compares to others using our calculator here.
Read on to find out if a KBC mortgage makes sense for you and the other options for a great rate and easy approval.
They offer residential mortgages of more than €100,000 only, including first time buyers, home movers, buy to let and switchers.
They do not offer staged payment self build mortgages.
They will do top up mortgages for home improvements, but that is pretty much it.
KBC Mortgage Approval Credit Policy
KBC are known for having a more flexible credit policy than some other lenders and pretty good turn around times if you need your approval or money in a hurry.
Unlike Avant Money they will allow you to borrow more than 3.5 times your income if you can show you have sufficient disposable income. These mortgages are known as ‘exceptions’ as they are exceptions to the Central Bank lending limits.
KBC Mortgage Rate
In the 3 year fixed rate mortgage comparison table below the KBC mortgage comes out in 6th place, but unlike some of the other lenders they offer €3,000 if you are switching and €1,500 for FTB’s and Movers.
Annual Percentage Rate Charge (APRC) represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1] You can check out the APRC of all the mortgages currently on the market using our comparison tool here.
If you don’t need the cash back to cover legal fees etc.. then we would recommend the Avant Money or ICS mortgages, however if you do then KBC are the best of the rest. Based on current rates they offer a lot better value than EBS, Permanent TSB and Bank of Ireland which also offer cash back.
Competitive fixed rates and reasonable follow on rate
Good cash back offering
Con’s
Avant Money & ICS offer better fixed rates
Bank of Ireland takeover raises questions over rates longer term
Recommendation – KBC Mortgage Review Ireland 2021
So if you are on a standard variable rate are looking to switch, but can’t afford the legal fees then KBC remain the best option. If you are worried about the Bank of Ireland takeover there is nothing to stop you switching your mortgage when you come out of your fixed term and availing of a new introductory fixed rate or cash back offer from another lender.
Switching legal fees are currently around €1,500 so KBC’s 3 grand cash back will leave you with change to spare. Even better if you use moneysherpa to switch and take up their all in switching deal for €1,200 including VAT you will be €1,800 to the good before any savings from the lower rates a win win.
If you can afford to cover the legal fees yourself though, you are better off looking at Avant Money or ICS as the long term savings will out weigh the cash back saving pretty quickly.
The death of KBC in the mortgage market has been greatly exaggerated. In all likelihood they will remain a good option for some people looking for a sweet spot between cash back and competitive on-going rates.
If you are with KBC today your terms will remain the same, however if your are on their variable rate you should now look at the lower fixed rates being provided by Finance Ireland, ICS and Avant Money.
The Credit Union is an Irish Institution so it’s natural to consider it when thinking about financing your own home. In our Credit Union Mortgage Ultimate Review – Ireland 2021 we will give you the inside track on a Credit Union mortgage and what other options are available.
As someone who used to lead the mortgage product team in PTSB I’ve kept a close eye on Credit Union’s entry into the mortgage market.
The good news is there are now over 100 Credit Unions across Ireland offering mortgages to their members.
The bad news is that those mortgages aren’t anywhere near as attractive for members as the low rate and flexible credit terms of the Credit Union’s personal loan offerings.
Credit Union mortgage rates are typically 70% higher than leading lenders rates and although they have some local flexibility on approvals it’s nowhere near as forgiving as that you would get for a Credit Union personal loan.
Lending rules for Credit Union mortgages laid down by the Central Bank of Ireland limit the number of mortgages Credit Unions can dole out to members and also the who gets them.
Credit Union Mortgage Rate and Product Overview – Credit Union Mortgage Ireland 2021
Credit Union Mortgage Availability
Don’t forget to get a Credit Union mortgage you have to be a member of the Credit Union you want the loan from. Typically you will need to be a member for at least 6 months before you can take out a Credit Union mortgage.
Another thing to watch out for is that a Credit Union mortgage is only available on your principal private residence. In other words if you want a mortgage for anything other than the home you live in most of the time, such as a holiday home, investment property or even a self build, a Credit Union mortgage isn’t an option.
Most Credit Unions also have tighter restrictions than other lenders on the loan to value, looking for 80% or less. This means you would have to find 20% of the house value for a deposit versus 10% with most other lenders.
Credit Union Mortgage Loan Size and Term
Credit Unions limit the size of the mortgages they offer by region due to differences in house valuations and Central Bank rules. Typical limits are,
Credit Union mortgage terms are typically available from 5 to 35 years.
Credit Union Mortgage Approval Policy
Just like other lenders, the Credit Union has to be sure you have the capacity to repay the mortgage loan before giving approval. This capacity to repay will take into account other loans you may have, dependents and also whether you can still afford the repayments if interest rates rise significantly in future.
If you have an existing savings account and a history of saving or paying your rent or Credit Union personal loans off regularly this will help with approval.
Credit Union Mortgage Rate
Many Credit Unions are now offering both fixed and variable mortgage rates. The actual rates vary by Credit Union, however as they are all working within the same rules and cost constraints our research has shown them to be within 0.1%-0.3% of each other nationwide generally.
To help compare with other lenders, we have used the Member First Credit Union in Dublin, whose rates are typical of other Credit Union rates, in the table below.
Provider
Product
Rate
APRC
Member First CU
3 Year Fixed
3.5%
4.1%
ICS Mortgages
3 Year Fixed
1.95%
2.38%
Member First CU
Variable Rate
4.25%
4.33%
ICS Mortgages
Variable Rate
2.45%
2.53%
Typical Credit Union Mortgage Rates v Other Lenders
Annual Percentage Rate Charge (APRC) represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]
Pro’s & Con’s – Credit Union Mortgage Ireland 2021
Pro’s
Local office ability to talk face to face with an advisor
As an existing member your account history might provide evidence you can make the repayments that other lenders might not consider
Con’s
Limited mortgage product offering, principal private residence only and capped amounts
Expensive, rates 70% more than other lenders
Recommendation – Credit Union Mortgage Ireland 2021
Although Credit Unions have a fantastic reputation and for personal loans offer great rates and approval terms when it comes to mortgages we recommend you strongly consider other lenders.
Not choosing a Credit Union doesn’t mean choosing a bank. There are a number of non bank lenders such as ICS, Avant Money and Finance Ireland that offer better rates than the banks and more flexible approval approaches.
In a Nutshell – Credit Union Mortgage Ireland 2021
The non bank lenders Avant Money, ICS Mortgages and Finance Ireland offer the best combination of rates and approval flexibility for most people looking for a mortgage.
The banks are typically more expensive and less forgiving on approvals, whilst the Credit Union only makes sense if you have exhausted your all other options.
Mortgage interest rates Ireland. Rates are on the move, the good news is they’re down not up. That means big savings with the right provider.
With the entry of new non bank lenders into the Irish mortgage market, we have seen real competition on mortgage interest rates in Ireland in the last couple of years. That’s great news for Consumers.
Non bank lenders have less cost than the traditional banks, they don’t have to hold as much capital due the way they are funded, they don’t have expensive branch networks to support and they don’t have the cost of tracker mortgages to offset.
The three non bank lenders Avant Money, ICS and Finance Ireland have been fighting for the top dog position in the Irish Mortgage market in recent months. These three have been offering much better value than the traditional lenders (Bank of Ireland, AIB, PTSB, KBC, Ulster) for some time.
Finance Ireland dropped their rates this week and Avant Money just fired back with their mortgage rate cuts, opening up a clear lead on the competition with their latest mortgage interest rate changes.
You can see how all the recent mortgage interest rate moves shake out in our handy table below, for the most popular rate in the market the 3 year fixed rate.
We use the Annual Percentage Rate Charge (APRC) to represent the average interest rate rate across the lifetime of a typical mortgage, as this is the best way to compare as recommended by the Competition & Consumer Protection Commission. [1]
Avant have now opened up a clear lead at the top of the table at least 0.35% ahead of their nearest rivals ICS. Turning to the foot of the table EBS, PTSB and Bank of Ireland prop things up with all their rates at least 1.25% more expensive than Avant Money.
If you’re thinking that a couple of percentage points won’t make that much difference, you’re mistaken.
A quick example using the average mortgage in Ireland of €240,000 and term of 15 years might help.
Total Interest = €42,536, Avant Money’s 3 Year 90% LTV Fixed Rate
Total Interest = €51,064, with ICS’s 3 Year 90% LTV Fixed Rate
Total Interest = €80,084, with Bank Of Ireland’s 3 Year 90% LTV Fixed Rate
That’s a difference in what you will pay of €37,548 between the top and the bottom provider.
It’s worth noting that the bottom 3 providers EBS, PTSB and Bank of Ireland do offer cash back on their loans, but the maximum cash back is only €7,200, that’s way below the extra you will be charged for repayments. The smart move then is to ignore the cash back if you can, it’s only there to hide the uncompetitive interest rates from these providers.
Even the interest rate difference between the top two Avant Money and Finance Ireland is significant at €8,528 over the duration of the mortgage.
No 1 Provider Avant Money – Mortgage Interest Rates Ireland 2022
Avant Money have led the market on introductory rate for mortgages with a lower loan to value since their entry into the Irish market, with a headline rate of 1.95%.
However, Haven offered better rates on some of the higher loan to value mortgages and ICS had matched their introductory rate with a slightly better rate after the introductory period.
Avant Money’s latest changes have addressed these two areas.
They now lead the pack for introductory rates for all loan to values.
They now have one of the best follow on rates in the market
These moves mean if you are looking for the lowest cost in both the short and long term they are now clearly the best option. The best way to compare the overall cost of a mortgage is to use the APRC.
Avant Money’s Short and Medium introductory rates and APRC are laid out here.
AVANT MONEY RATES (APRC calculated on €100K loan, 30 years, valuation of €185, security release €40)
The other piece of good news is that Avant have now extended their availability from only urban centres to offer mortgages right across the country. One thing to watch out for though, Avant Money are selective about what they lend for and to who.
They offer residential mortgages of more than €100,000 only, including first time buyers, home movers and switchers.
They do not offer investment, buy to let or staged payment self build mortgages.
They will do top up mortgages for home improvements as well, but that is pretty much it.
If you are looking to switch or buy right now though and you can get an Avant Money mortgage, then you should.
If you can’t get an Avant Money mortgage because of their tight credit policy ICS and Finance Ireland are both good options, with rates far better than the traditional lenders.
So advantage Avant Money, all eyes will be on the other lenders to see if they can respond. Either way it’s great news for hard pressed Irish consumers looking to save a few euro.
Our online application tool will tip you off as to exactly what docs you need to upload for your particular application. The lenders need these documents to
Confirm who you say you are
Confirm you can repay what you say you can repay
If you are super organised and want to check these out in advance this handy mortgage document checklist will help!
A. Identity Documents – Mortgage Document Checklist
1. Original passport, driver’s licence or EU National Identity Card (EU country)
2. Utility bill dated in the past 6 months (alternatively, an original statement from a financial institution, or a letter from a government department may suffice, dated in the last 6 months)
B. PAYE – Employment and Income – Mortgage Document Checklist
3. Attached salary certificate completed and stamped by employer
4. P60 for past calendar year
5. Last 3 months payslips
C. Self Employed – Employment and Income – Mortgage Document Checklist
6. 3 most recent Tax Returns (P21 or Notice of Assessment / Chapter 4 Revenue Certificate with fully completed Form 11)
7. Tax clearance certificate (business and personal)
8. Last 3 years trading accounts, Financial / Audited accounts for 3 most recent financial years signed by your Accountant.
D. Financial Statements – Mortgage Document Checklist
9. Last 6 months bank account statements (Please include all accounts — current, joint, savings. business etc.), up to date i.e. within the last 4 weeks.
10. Historical savings account statements (or other evidence in writing) showing the build-up and sources of funds being used for the deposit on the property
11. Last 6 months credit card statements
12. 12 month statements on any short term loans i.e. car loan, Credit Union loan etc.
13. Mortgage statement(s)
E. Other – Mortgage Document Checklist
14. Separation Agreement, Decree of Judicial Separation, Decree of Divorce, Deed of Waiver and / or any other relevant Court Order.
15. Detailed estimates for any renovations (if applicable).
F. Forms to Complete, Sign and Return – Mortgage Document Checklist
16. Mortgage application form
17. Declaration and consent form for each lender being approached for best terms
These declarations will support us making the best recommendation for you and making sure you have understood each step.
The details on these will be based on the information you will provide in the supporting documentation requested.
Your signed declaration is confirming this information to be correct. Should your circumstance change either prior to or after the mortgage fact-find and lender application form being generated you need to advise us of any change.
Did you know that money & finance is the most frequent source of worry for Irish adults today, more than family or health? [1]
The source of this worry is financial security. Yet when it comes creating that security, Irish investing and pension participation is less than half UK rates. [2,3]
Why? People need to overcome their financial fears and that’s the problem moneysherpa was born to fix.
My story
Whilst I was responsible for financial services for Ireland’s 3rd largest bank PTSB, I was puzzled by this financial in-action. I couldn’t square the number of people with savings earning no returns or on high mortgage rates and the low levels of switching.
It was only years later, when I started consulting for a financial advice firm, that it dawned on me. The problem was a powerful cocktail of two things, fear of finance and friction in the buying journey.
I got to understand their motivation a lot better by talking to people about their finances over a coffee one on one. In these conversations I’d hear the same themes over and over again.
Savers stuck with earning low returns because they weren’t aware of how to build a portfolio or even better a pension. Mortgage holders sticking with interest rates twice as high as they should be, because they were worried they might lose their house by switching or that the process would be as painful as when they first bought.
Even the people that had overcome this initial fear then found themselves bogged down in tricky choices and paperwork. Giving up before actually making an investment, setting up a pension or switching their mortgage.
In talking to all kinds of people about their finances, I realised that this fear and friction was driven by lack of clear information, impartial advice and supporting services.
Our solution
Existing financial information in Ireland is too wordy and generic. Advice too expensive and compromised, while support to help customers take action easily?
It simply doesn’t exist.
In other countries like the US & UK, customers have already been empowered to take control of their personal finances by startups like moneysherpa. These countries boast 20% higher financial literacy and double the level of financial engagement seen in Ireland [4].
So we assembled a handpicked team of technologists and financial experts and decided to build moneysherpa, to better support the financial journey of Irish customers.
What makes us different
At moneysherpa we empower people to reach their financial goals.
Helping them make smarter decisions and then put them into practice.
We do this by delivering 3 things.
The right information, at the right time. We track what people are actually asking and make sure we give a straightforward answer. Using smart Search Engine Optimisation and our team of qualified expert contributors to produce on point content.
Un-compromised free advice. We provide impartial reviews and recommendations on the best approach and financial providers for our customers. Supported by our strictly impartial editorial code so no financial provider gets unfairly promoted. We are also totally transparent who we get paid by, what for and by how much.
The help they need. We make getting and switching personal finance providers easier. Our on site tools crunch the numbers for you, guiding you to the best rates, the provider most likely to approve your mortgage or working out exactly how much you will really save. Our sherpa customer teams will then guide you through the process of switching mortgage or making an investment over a series of video calls and emails.
Our secret sauce lies in the way we have built our platform from the ground up to solve these challenges for our customers.
Our journey
We have talked to hundreds of customers, jumped over all the required regulatory hurdles, built multiple unique tools and services, then spent hours testing and tweaking all the moving parts. Yet we are only just getting started.
Initially we will be focussed on helping people invest and switch their mortgage. Future developments will see us expand to other financial services, including pensions, savings, loans and insurance.
As well as offering our services direct to consumers, we are also able to open up our technology to selected partners using our cloud based architecture.
This will raise the bar for the Irish financial services industry as a whole. We will be announcing our first partners in the coming weeks
What’s next?
If you share our passion to re-shape the personal finance landscape in Ireland, you can follow our progress on our social channels below or by signing up to our newsletter. If you want to suggest a great idea, an article or you are a potential partner you can reach me on [email protected]
If you want to make smarter investment or mortgage choices, you already know where to go ;-).
We’ve spent hours crunching all the mortgage rate numbers to come up with the best mortgage rate Ireland 2022 for you. The mortgage rate you are on can make a huge difference to your monthly repayments, read on to find out how you can save thousands of euro a year.
Our analysis of the best mortgage rate Ireland 2022 includes all the 250+ rates available on the market today for residential mortgages. We have the best tools, the best experts and aren’t tied to any lender. So read on to get the lowdown.
A better mortgage rate can make huge difference to the cost of your mortgage for two reasons.
Mortgages are so large, with the average mortgage over €200,000
Mortgages are usually over a long period, with an average length of 15 years
Large mortgage + long time = thousands of euro to be saved in interest payments.
The average Irish consumer can save over €20,000 by picking or switching to the best mortgage rate. This means you can afford a bigger home, pay off your mortgage early or simply pocket those savings.
Using the APRC makes it easier to compare mortgage rates as it includes any hidden fees and how your rate might change over time. That’s why it’s recommended by the Competition and Consumer Protection Commission (CCPC) and that’s why we use it to drive our rate comparisons. [1]
The lowest rate on the market today is Avant Money’s 7 yr fixed rate at 2.01% APRC.
The highest for the same loan is Bank of Ireland’s variable at a whopping 4% APRC.
A €200,000 mortgage over 15 years at Bank of Ireland’s 4% APRC will cost over €30,000 more than at Avant Money’s 2.01% APRC. These kind of savings are typical for anyone who bought after 2008.
So it pays to shop around and be smart when selecting your mortgage rate. Moneysherpa’s advisors deal with all the leading lenders so can point you in the right direction.
The type of mortgage you choose can make a big difference and depends on your individual needs, read on to see what mortgage type makes the most sense for you and what’s the best mortgage to choose.
Our best mortgage rate Ireland by type – Best mortgage rate Ireland 2022
So what is the best mortgage rate Ireland 2022? There are two main types of mortgage rate in the Irish market, a fixed mortgage rate and a variable mortgage rate.
Lenders have focussed on offering better deals on fixed rate mortgages as a way of gaining new business without having to cut rates to existing customers on variable rates.
According to our algorithm the best 24 mortgage deals on the market right now are all fixed rate, with an APRC of less than 2.7%. The best variable offering is with ICS mortgages is at 2.53% APRC.
As a result over 80% of new mortgages are currently fixed rate mortgage deals and you will almost certainly be better off with a fixed mortgage rate.
The downside of a fixed mortgage are the penalties you pay if you want to change your mortgage within the fixed period. That said, are you really going to be switching every couple of years?
The lowest APRC’s are usually for the longest fixed deals like Avant Money’s 15yr fixed at 2.29%, this rate has really shook up the market and if you’re looking for the lowest cost both in the short and long term it’s the clear winner. Now, you probably won’t change your mortgage too often, but if you want the option there are plenty of 4-7 yr options still at APRC’s of 2.5% or less, which we cover below.
Here’s our recommendations, read on to find out more about each and the key things to consider.
The rate available to you will depend on the size of loan you need divided by the value of the home. The lower the loan to value (LTV) the cheaper the rate, this is because there is less risk for the lender.
We have assumed an LTV of less than 60% in this article to keep things simple, to check out the exact rate for your LTV you should check out our repayment calculator here.
Here’s how the ratings broke down in each of our categories, the key data for best mortgage rate Ireland 2022 and the key reasons we selected each category winner.
Best mortgage rate Ireland overall – Best mortgage rate Ireland 2022
If you’re looking for the lowest repayments and don’t mind being tied in to a provider for 15 years look no further.
The Avant Money 15 year fixed rate product has the lowest introductory rate of 1.95% in the market for the first fifteen years, with a market leading APRC over the lifetime of the mortgage of 2.29%.
Avant Money are owned by the large Spanish bank Interbank. As a new entrant they have a lower cost base than most of the other lenders, which allows them to offer more attractive deals.
They operate quite a strict lending policy, so it may be worth talking to a broker or using our online approval assessment tool to get your approval chances assessed in advance of application. If you can get it and you are happy to commit to the fifteen years, this product wins the mortgage rate war hands down.
The leading score on rate, whilst not dropping many points on the basis of flexibility, makes the Avant Money 15 year fixed product the best mortgage rate Ireland 2022 choice overall and also the best fixed mortgage rate.
Best fixed short term mortgage rate – Best mortgage rate Ireland 2022
If you want to save on legacy rates, but don’t feel you can commit to fifteen years without changes then there are plenty of fixed rates available between three to five years that still might do the trick.
* LTV < 50%, excludes Mortgage value >€250,000, excludes Green mortgages
The low fixed rate period is shorter so the overall cost of the mortgage is higher, but the mortgage rate across the term is still around 2% APRC.
Avant Money lead the pack, with their 4 year fixed at 2.02% APRC with an introductory rate of 1.95%. ICS run them very close, with more flexible lending policies that might suit if you want a super short term rate.
Best variable mortgage rate – Best mortgage rate Ireland 2022
If you want the flexibility to switch without any penalty in the early years or are not sure about the benefits of a fixed rate, there are still variable mortgage rates that offer big savings on other mortgage rates.
Probable follow on variable rates post fixed period based on current variable rates by provider
ICS offer an APRC of 2.45% which is far and away the best variable rate in the market. On the average mortgage and term, by switching to them you will save €21,641 versus Bank of Ireland’s 4% APRC product at the same LTV without even having to fix. Haven who are owned by AIB, also offer a competitive variable product at 2.8%
3 things to look out for when choosing the best mortgage rate – Best mortgage rate Ireland 2022
While the mortgage rate is the most important thing in choosing the mortgage that’s right for you, there are a number of other things to also consider. Here are the top 3 things you need to know before picking your mortgage.
Approval rate
If you are switching without ‘topping up’ your mortgage (increasing your loan size), approval isn’t usually a big factor. If you are buying or topping up though, the lender you choose can have a big impact on your chance of approval.
For example KBC’s ‘hurdle rate’ for the disposable income you must have is lower than some other lenders. So if you are really stretching to buy that dream home, they may be a good option. ICS offers higher loan sizes to public sector workers, while Finance Ireland have a mortgage for borrowers who have a more rocky credit history.
It’s a good idea to talk to a broker or a mortgage sherpa, to pick the lender who is most likely to get you approved. A number of lenders only work through mortgage advisors and they can also apply to multiple lenders at the same time to maximise your chances.
Switcher, first time, mover, self build or Investment
Another thing that can make a big difference picking the best lender, is the type of buyer you are. Finance Ireland specialise in providing mortgages for investment properties, while other lenders like PTSB are good options if you are building your own property. A mortgage advisor who knows the lenders can help picking the right lender for your needs.
Cashback and other benefits
Bank of Ireland and PTSB offer cashback deals which give you money in your bank account instantly when you get a new mortgage or switch to them. KBC offer €3,000 to cover your solicitors and estate agent fees when your switching which can be a good option.
Generally though, the providers without the cashback offers are the better value in the long term. So unless you are planning switching every couple of years, you are better off choosing your mortgage rate based on the lowest mortgage APRC.
Mortgage advisors
Mortgage advisors, also known as brokers, are usually free to use as they are paid a commission by the lenders. The rates you pay via a broker are the same as those you pay when you go direct.
A number of lenders only operate through brokers, such as Avant Money and Finance Ireland. So working with a broker will often give you access to better rates.
As brokers are working with multiple lenders day in day out, they know all the pro’s and con’s of each lender and can give you independent advice on the best lender for you. Plus they will take the pain out of the paperwork, which is a big plus.
Whether you are a switcher, mover, investor or first time buyer, we hope this article helped you cut through the fog around mortgage rates in Ireland and help you choose the best mortgage rate Ireland 2022.
Avant Money’s other products are also a great choice for those looking for medium fixed terms. We would strongly advise to fix for as long as you can, but if you want lots of flexibility or a friendlier credit policy ICS’s 3 Year Fixed or Variable rates are good options.
If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.
Once you have your mortgage all sorted and you want to sell your own home this handy guide by the online Irish estate agent start up Moovingo might also be useful.
Our team of mortgage sherpas will help you navigate your mortgage journey. Because we know mortgages inside out we can help you get the best deal from the lenders.
moneysherpa rated Best in Ireland
You don’t have to take our word for it, we are rated the No 1 Mortgage Broker in Ireland by the comparison site Best in Ireland.
Our mortgage sherpas are experienced and fully qualified mortgage advisors, who have worked for all the major lenders so know the landscape inside out.
Best of all they are free to use. Our sherpas do all the hard work for the lenders, so they pay us direct when you receive your loan.
We work with all the major lenders, so can give you independent advice and you get exactly the same rate from lenders as you would if you went direct. Win Win.
Our sherpa’s will handle the mortgage application for you, taking the pain out of the paperwork. We have even partnered with expert property solicitors to offer the best conveyancing prices exclusively to moneysherpa customers.
Plus, we are the only provider offering rate insurance for free, monitoring the whole market and letting you know when there is a better deal out there. So you don’t pay a single cent more than you have to.
If you prefer you can also use our on line tools below to get started on your own. Once you are on your way, our sherpas will guide you through the assessment, offer and drawdown journey. Ending with your new mortgage
With the launch of fixed rate mortgages of 15 years + in the last few months, there are some great options for buyers and switchers. Read on to get the best fixed rate mortgage Ireland 2021 and see which type is right for you.
We’ve previously explained why fixed rate mortgages beat variable hands down in Ireland due to some particular quirks in the Irish mortgage market. With fixed rates offering savings of over €20,000 for most people buying after 2008.
Now, with the recent launch of 15-30 year fixed rates by Finance Ireland and Avant Money there are two different flavours of fixed rate.
Short term fixed ‘teaser’ rates – Very low fixed initial payments then variable
Long term fixed ‘lifetime’ rates – Low fixed payments for whole term
So which is best for you and which mortgage product should you choose?
We have crunched the numbers and looked at all the pros and cons across all the current fixed rate mortgage providers in Ireland.
If you want the lowest repayments now, are comfortable with your repayments going up at the end of your fixed period and think you may switch mortgage in future, we would recommend the Avant Money 5 year fixed with an APRC (Average Percentage Rate Charge) of 2.36% @ 60% Loan to Value (LTV). This is half the current Standard Variable Rate (SVR). You can check out the best rates for you across all providers here.
If you aren’t planning to switch again for better deals in future or are stretching yourself to the limit with your repayments, you should go for the Avant Money 15 year One mortgage with an APRC of 2.29% @ 60% LTV. You can check out the best rates for your LTV and sort by initial or long term repayments here.
To get under the hood of why these are the best fixed rate mortgage Ireland 2021 deals read on.
Short term v long term fixed rate mortgage – Best fixed rate mortgage Ireland 2021
Which type of fixed rate is best for you boils down to how much risk you are comfortable with.
With a long term fixed rate you effectively insure your repayments. This ‘insurance’ guarantees your repayments can’t rise in the fixed period for 15-30 years, which you can match to your whole mortgage term.
At an interest rate of 2.65% your monthly repayment = €1,009 for a €220,000 mortgage over 25 years.
At 7% this goes to €1,555, €546 more a month.
It’s not crazy to think rates might get to 7% at some point in the future, in 1993 mortgage rates peaked at 14%. This is a hefty hole in anyones pocket that by fixing long term you are avoiding the risk of completely.
That said, like any insurance policy you will pay a premium, for example the initial rate of Avant Money’s 25 year product is 0.7% higher than for their 5 year product. On the same mortgage that would mean paying €99 more a month in the first 5 years on the 25 year fixed product versus the 5 year fixed.
As well as the higher costs of going long term, you obviously run the risk of missing out if rates fall. If anyone says they know which way rates will go in future they are either lying to you or themselves, but most pundits think rates are set to head up rather than down right now.
The last thing to bear in mind is fixing for longer means less flexibility, If you want to pay your mortgage down to switch, reduce the term or if your personal circumstances change there may be caps and penalties that restrict your options.
That’s why we recommend the best fixed rate mortgage Ireland 2021 as Avant Money’s 15 year fixed product. To get the best rate yet still keep your options open later in life.
Best short term fixed rate mortgage – Best fixed rate mortgage Ireland 2021
If you’re looking for the lowest repayments look no further than the ICS’s 3 year fixed rate it has the lowest introductory rate at 1.95% for the first three years, with a market leading APRC over the lifetime of the mortgage of 2.38%.
As a new entrant ICS have a lower cost base than most of the other lenders, which allows them to offer more attractive deals.
None of our top 3 short term fixed rate recommendations offer cash back as those products are much less competitive. You can find out more about cash back and switching costs here.
The leading score on rate plus a flexible lending policy, makes the ICS Mortgage’s 3 year fixed product the best mortgage rate choice for the short term.
Best long term fixed rate mortgage – Best fixed rate mortgage Ireland 2021
If you are prepared to pay a little more for absolute certainty about your repayments then the Avant Money 15 year fixed rate is your only man. If you need a little longer Avant Money even have a 30 year option at 2.85% for LTV’s less than 60%. All the rates for all the LTV’s are here.
With an eye to addressing customer concerns about being tied in both Avant Money and Finance Ireland, have made their fixed rate options pretty flexible. They both allow overpayments of 10% per year if you find yourself flush and they both have capped the penalty fee for breaking out of your rate.
Avant to less than 2% of the value of the mortgage and Finance Ireland to less than 5%.
If you move home both providers will waive the redemption fee as long as you keep your mortgage with them. One difference though is that Avant Money will reset the rates on all of the new mortgage when you move, while Finance Ireland will let you keep the original rates on the outstanding mortgage.
The final difference is that if your loan to value improves during the fixed rate period Finance Ireland will automatically move you to a lower rate. If house prices continue to rise this could be significant, as their 20 year 2.99% @ 90% LTV could fall to a 2.65% @ 60% LTV.
That said Avant Money’s 20 year 90% LTV is already cheaper at 2.75% and if you are the type of person who is going to gamble on house prices, your probably not looking for a fixed rate in the first place.
The leading score on rate, whilst not dropping many points on the basis of flexibility, makes the Avant Money 15 year fixed product the best mortgage rate choice if you still want a great value mortgage, but want to guard against rate increases in future.
In a nutshell – Best fixed rate mortgage Ireland 2021
So there you have it, two great options to suit your needs. Both of these products will save thousands versus the standard rate products at 4.2% APRC that most people buying after 2008 are on.
The 3 year ICS Mortgages fixed rate gives you the best saving straight into your hand and will still outperform legacy rates into the future. Plus gives you absolutely flexibility once you are out of your 3 year fixed period.
The 15 year Avant Money fixed rate still gives you great savings over legacy rates with absolute certainty about your repayments for 15 years.
moneysherpa was created by Irish financial and media professionals frustrated at the lack of good quality personal finance guidance available for the Irish consumer.
Welcome! My name is Mark Coan and I’ve spent almost twenty years in the Irish finance and media industry.
When it came to planning my own finances however, I was surprised at how hard it was to get good quality information about the personal finance products available in the Irish market.
This prompted me to delve a little deeper into the world of personal finance.
That’s when I realised the significant impact the differences in charges, fees and features have on your financial outcomes.
In Ireland almost all the information available about these products is from the providers themselves, advisors incentivised to push particular services or has to be paid for.
During my research it became crystal clear I was not alone in needing free, straightforward, unbiased and comprehensive personal finance information.
In fact according to a Central Bank of Ireland report 61% of Irish consumers believe that the personal finance advice they receive is based on the incentives the advisor receives, not their best interests.
As a qualified finance professional and business veteran who recently led one of Ireland’s largest consumer banking operations, we’ve created a team to provide the straightforward, independent and comprehensive personal finance guidance Ireland needs.
All the content we will publish on this site has been written or overseen by a qualified financial advisor in the relevant field.
Our independent product reviews, guides and tools cover all the main providers in the Irish market. We do not carry advertising, companies can’t pay to feature on our service or rank higher in our comparison tables. We may receive a commission from a provider when you select one of our recommendations, but this simply allows us to provide the service for free and doesn’t change our content in any way.
In founding moneysherpa, I’ve put together all the guidance I couldn’t find when I was planning my own finances. I hope this service will help Irish consumers make smarter money choices and get on the right path to reaching the summit of their own financial Everest.
Mark Coan (CBD, LIB)
Our team
At moneysherpa we’ve created a crack team of financial experts to help you climb to your financial goals. Whether that’s retiring to a yacht in the Bahamas or saving for a weekend away in Bundoran we’re who you should turn to first.
Dr. Joe Connolly (PhD) – CTO
Joe is the architect of our tech stack which powers our customer tools. He is also the co-founder of Bizgraph a leading business planning software firm. With over twenty years as chief data scientist and software architect for leading multi-nationals, Joe makes sure our tech works hard for our customers.
Daire McConnon (QFA) – Mortgage Sherpa
Daire is a fully qualified mortgage advisor. He previously held mortgage advisory roles with PTSB and Which Mortgages.
He is a key member of the moneysherpa working with our customers to help them get the best result every day.
Petrina Malcolm (QFA) – Customer Sherpa
Petrina is an experienced fully qualified mortgage advisor. She previously held mortgage advisory and customer facing roles with PTSB.
Petrina gets a kick every day from helping our customers.
Martina Baldwin – Lender Sherpa
Martina has worked in customer facing roles for almost a decade. She is dedicated to delivering for our customers, having previously worked for both eBay and major retail banks.
She shepard’s all our customer documentation making sure we do right by our customers and readers.
Brendan Nordon (FSIA) – Contributor
Brendan is both a qualified Actuary and a Revenue Approved Pensioner Trustee. He has over 20 years experience advising on individual and group arrangements and is head of retirement planning at one of Ireland’s leading advisory firms, having previously worked for both Towers Watson and Mercer in the UK and Ireland respectively. He writes and consults for moneysherpa on all things pension and more.
Ciaran Carolan (CFA) – Contributor
Ciaran is a Chartered Financial Analyst and currently works a Senior Investment Analyst with the DFP Group. He has a proven history in the investments industry, having previously worked for some of the leading Irish investment firms, including BNY Mellon and First Derivatives. He writes and consults for moneysherpa on all things investing.
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Martina has worked in customer facing roles for almost a decade. She is dedicated to delivering for our customers, having previously worked for both eBay and major retail banks.
