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When taking out a mortgage you have the option of two types of interest rate:
Fixed Rate
Fixed rates involve a loan where the repayments remain the same for an agreed term. The idea is you fix into an interest rate for a certain period, and if you wish to get out of that rate you will incur a penalty. Fixed rates tend to be slightly lower than variable rates, however there are certain drawbacks which must be considered. At the end of the fixed period you have the option to fix again or move to a variable rate, where there is no exit penalty.
Variable Rate
With a variable rate the amount of interest that you must pay can increase and decrease. These changes are determined mainly by the interest rate set by the European central bank. Although the variable rates are slightly higher than the fixed rates you have the advantage of flexibility, where there is no penalty for transfer, plus if rates come down you reap the benefits of cheaper repayments.
We can assist you in every area of property investment:
Contact us for more information
For more information on how Barker can help you with your mortgage requirements, please contact us on 1850 373 222 or e-mail us at info@barker.ie. Alternatively, click here to apply online for a mortgage .
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