Mortgage rates fall to their lowest in years – but the warning for adjustable rate customers is now in the ‘last chance room’.

Mortgage rates have fallen to their lowest level in years.

This has resulted in people with expensive variables being warned not to grab their last opportunity to get a cheaper fixed rate.

Home loan rates in that country are now the eighth lowest in the euro zone, having been the highest just a few months ago.

This is in contrast to the rest of the eurozone, where interest rates have risen dramatically over the past six months.

New figures from the Central Bank of Ireland show that the average interest rate on new mortgages in the country was 2.58 per cent in September. This is down from 2.64 percent in August.

The eurozone average is 2.40 percent, the highest since at least August 2017 and more than double the level this time last year.

Ireland was also the only country whose September average rate fell compared to the previous month. communications director Daragh Cassidy said: “While interest rates have started to shoot up elsewhere in Europe, here they have remained remarkably stable for the time being.

“However, we have to keep in mind that rates in Ireland were comparatively high to begin with. Especially variable rates. Still, the slowness of key lenders in passing on the European Central Bank’s recent rate hikes is obviously welcome.”

Bank of Ireland and Permanent TSB are yet to pass one of the 2 percentage point rate hikes from the ECB to their non-tracker clients.

AIB only increased its fixed rates by 0.50 percentage points. This increase did not come into effect for new applications until mid-October.

Broker Michael Dowling said there was still time for people with adjustable rates and those whose fixed rates were running out to either seek a new fixed rate from their lender or switch to another provider.

He said there have been three ECB rate hikes and more jumbo hikes are planned through next summer.

Those using trackers with very high margins should seek advice if they are considering abandoning the tracker for a fixed rate, he said.

Up to 200,000 homeowners have variable rates. There are 250,000 on trackers that rise or fall as the ECB rate changes.

These folks are in the “last chance room” when it comes to taking some of the lowest fixed rates in years.

Mr Dowling said the first thing those looking for a solution should do is ask their own lender what options are on offer.

There may still be time to process a mortgage switch, although some lenders take more than six weeks to process a switch.

He said Permanent TSB offers a four-year fixed rate of 2.05 percent for those with a credit score of less than 80 percent.

But the people hardest hit by the ECB’s rate-hike frenzy are those whose mortgages have been sold to vulture funds because the companies servicing those loans don’t offer fixed rates.

Thousands of borrowers have been impacted after their mortgages were sold by companies like Permanent TSB and are now managed by Start Mortgages, Pepper and Cabot.

Many have been told their variable interest rates are now rising to 5.1 percent, while others report being hit with interest rates as high as 5.8 percent.

This is despite the fact that they have been told by the central bank and government that they would not incur any losses if they sell their mortgages.

Mr Dowling said the credit services firms are not offering fixed rates as borrowers are exposed to the full extent of the ECB’s rate hikes. Mortgage rates fall to their lowest in years – but the warning for adjustable rate customers is now in the ‘last chance room’.

Fry Electronics Team

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