HOMEOWNERS in Limerick are among thousands across Ireland bracing for potential increases in their mortgage payments as they exit fixed-rate deals with non-bank lenders.
Many Limerick homeowners who locked in fixed rates a few years ago could see their interest rates jump by as much as 3.5 percentage points when their fixed terms end.
The latest figures from the Doddl.ie Mortgage Switching Index reveal that while some pillar banks have reduced their mortgage rates by up to 1 per cent, non-bank lenders are struggling to keep pace due to their different funding models.
With standard rates ranging from 3.6 per cent to 6.9 per cent, homeowners could save as much as €600 a month by securing the lowest rate according to Doddl.ie, based on the average new mortgage drawn down.
Unlike traditional banks, non-bank lenders do not have access to deposits as a source of funding, making them more reliant on market rates, which have remained stubbornly high.
According to Doddle.ie, homeowners coming to the end of their fixed-rate periods could benefit from a huge opportunity to save by switching their mortgage provider.
