The first thing you need to do is to approach a number of banks and see what package they can give you as regards a mortgage. Different banks can offer different packages and it is worth shopping around to ensure that you get the best offer from a bank. You don’t need to stay with the bank you have your day-to-day banking with. There are various mortgage options open to you as follows:-
- A fixed interest rate mortgage. This is where your mortgage interest rate is fixed for a specific term and your repayments don’t change during that term. Mortgages can be set for three to five to seven years. The advantage of this is that if it is a fixed rate, you know the exact mortgage amount that you are paying every month for that fixed period of time. However, if you change banks or remortgage with a different company, or pay off your mortgage earlier, the bank may charge you a fee for doing so if you are on a fixed rate mortgage.
- Variable rate mortgage. This is a variable rate mortgage, where during the duration of your mortgage, your mortgage interest rate can go up or down depending on what the Mortgage Bank, the Central Bank and the European Central Bank decide should happen. Over the last number of months variable rates have risen. The bank will always tell you in advance if your variable interest rate is going to go up or down and how much your monthly repayment amount will change as a result of that.
- Green fixed rate mortgage. Many banks are offering this option to customers. If you are buying or building a high energy rated home, they are offering a new lower rate of interest and to obtain that from a bank you normally need a Building Energy Rating Certificate (BER Certificate) of between an A1 and a B3.
Once your mortgage is approved, the bank will send a mortgage pack to your solicitor and to you. Your solicitor will go through the terms and conditions of the mortgage with you. Remember that it is always possible to move mortgage companies particularly if you are not on a fixed rate mortgage. This is something worth considering particularly if your current mortgage is at a variable interest rate.
If you have any questions our specialized Conveyancing/ Buying and Selling Property team is here to help.
You can contact Mc Cormack Solicitors on
Phone: 071 9621846
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