Take control with a fixed-rate mortgage
2 MIN READ
91% of first-time buyers say that ‘control over monthly repayments going up’ is an important consideration when choosing between a fixed rate and a variable rate mortgage according to First Time Buyer Research for Bank of Ireland*.
While 86% of them reported that taking control of their biggest monthly bill, the mortgage, would help bring them peace of mind over their repayments.
Why choose fixed-rate mortgages?
When thinking about which mortgage to choose, first-time buyers have to weigh up the pros and cons of fixed versus variable rates.
There are two main reasons that first-time buyers gave for choosing a fixed-rate mortgage over a variable rate in the First Time Buyer Research.
The first was ‘control over monthly repayments going up’ (91%) and the second was ‘the total cost over the lifetime of the mortgage’ (91%).
In other words, they believed that mortgage rates would rise in the next few years and they wanted to fix their repayments before they did.
Almost as important was ‘getting peace of mind over repayments’ (89%). They liked the feeling of knowing that they their mortgage repayments would not rise during their fixed-rate mortgage term.
This was particularly important to first-time buyers during the first few years of their mortgage (86%).
More first-time buyers interested in fixed-rate mortgages
Interestingly, according to the First Time Buyer Research, the number of first-time buyers interested in fixed-rate mortgages has increased from just over a quarter (27%) in 2018 to over a third (34%) in 2019.
It seems that fixed-rate mortgages are enjoying an increase in popularity.
Lowest-ever 1-year and 2-year fixed rate mortgages
Bank of Ireland now have their lowest-ever 1-year and 2-year fixed rates at 2.9% (from 4.0% APRC).
With rates at historic lows, it’s perhaps no surprise that Brian Vaughan, Head of Mortgages, Bank of Ireland, says, “we’re seeing more first time buyers choosing fixed rates, giving them more control and certainty over their repayments.”
Fixed rates with flexible options
According to the research, 83% of first-time buyers would like the ‘flexibility to increase or reduce monthly repayments’ if they needed to.
Bank of Ireland fixed-rate mortgages enable customers to overpay up to 10% of their monthly repayment or €65, whichever is greater, without cost.
They also allow customers to make no repayments in the first 3 months of First Time Buyer mortgage, take a 3-month payment break up to three times over the life of the mortgage and skip up to 2 payments in a year.
Terms and conditions apply to all these options.
Who can apply?
Bank of Ireland fixed rate mortgages are available to new mortgage customers, existing mortgage customers on a variable rate and to customers coming to the end of a fixed rate period.
Apply today and take control of your finances.
Find out more
Click here to find out more about Bank of Ireland’s lowest-ever, fixed-rate mortgages.
*First Time Buyer Research for Bank of Ireland was conducted by RED C between 30 January and 11 February with 207 first time buyers aged 25-45 who are planning to buy or build their first home in the next few years.
The lender is Bank of Ireland Mortgages. Lending criteria and terms and conditions apply, over 18s only. A typical mortgage to buy your home of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). APRC includes €150 valuation fee and mortgage charge of €175 paid to the Property Registration Authority. The total amount you pay is €148,114.60. We require property and life insurance. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income and 80% of the property value (90% of the property value for first time buyers).
3 months’ deferred payment is optional and subject to approval. After the deferred payment period, repayments are adjusted to repay the mortgage within its original term. The cost of the loan will be higher. A Life Policy is required for an amount equal to 102% of the loan. 3 month deferral applies to mortgage repayments only.
You can take a 3-month payment break up to three times over the life of your mortgage. To be eligible for a payment break: Your mortgage loan must be drawn down at least 2 years (if drawn in instalments, it must be at least 2 years since the final drawdown), there must be at least 12 months between payment breaks, and you must have complied with all the terms and conditions of the mortgage. Applications are subject to approval. Available on your Principle Private Dwelling only. Only available on annuity (standard capital and interest) repayment mortgages. At the end of the Payment Break period your repayments will be adjusted so that your mortgage will be repaid within its original term. I.e. your ‘Break’ repayments will be spread over your remaining mortgage, which means your new repayments will be higher than they were before the Payment Break. When you apply, we will send you a ‘Mortgage Form of Authorisation’ with full Payment Break terms and conditions for you to sign and return to us.
Warning: If you do not keep up your repayments you may lose your home.
Warning: You may have to pay charges if you pay off a fixed–rate loan early.
Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future change.
Bank of Ireland Mortgage Bank trading as Bank of Ireland Mortgages is regulated by the Central Bank of Ireland.