THE NATIONAL Consumer Agency has launched a mortgage rate change calculator in response to the growing level of anxiety among mortgage holders about rising interest rates.
The online tool, available at www.nca.ie, is aimed at helping people to work out the consequences of changing their mortgage to a new rate or term, or of making a lump-sum payment.
Consumers can use the calculator to work out changes to their monthly repayments if interest rates change, or if they want to change their mortgage interest rate or term.
It can also be used to calculate the long-term cost of paying a lump sum towards their mortgage, and subsequent repayments. “There is a lot of speculation in the media about interest rate increases and whether or not now is a good time to fix your mortgage rate,” said the agency’s chief executive, Ann Fitzgerald.
“We want mortgage holders to make the decision that is right for their own circumstances, armed with all the facts. For most of us, our mortgage is the most expensive loan we ever sign up to. So it is important to spend some time working out the impact of any changes before you sign up to them.”
Ms Fitzgerald said Permanent TSB’s decision to offer tracker mortgage holders a financial incentive for paying a lump sum towards their mortgage “may be an attractive option for some”, but she said people needed first to ensure they had “sufficient rainy-day funds put aside in case of unexpected expenses”.
