At Finance Ireland, we’re focused on flexibility and long-term value for our customers. That’s why we’ve introduced a range of long-term fixed rates designed to give homeowners certainty around their mortgage payments for 10, 15, 20 or 25 year terms.
Not only that, we’ve built some truly revolutionary features into our longer-term fixed rates.
A fixed rate that can reduce over time
Our fixed rates vary depending on your loan to value percentage (%) when you take out your mortgage. This is also known as LTV. LTV is the amount you are borrowing as a percentage of the value of property. For example, if the property is worth €100,000 and you are borrowing €90,000, your LTV is 90%.
As you make repayments over time and your loan to value percentage goes down, we’ll move your rate down to match. You’ll have the peace of mind of knowing that your long-term fixed rate will only ever reduce and will never go up.
A fixed rate that lets you pay more without early repayment charges
You can pay back up to 10% of your outstanding mortgage balance, without early repayment charges, in every year of your fixed rate term. This lets you pay off your mortgage faster and you pay less interest in the long run.
A fixed rate you can take with you if you move home
Want to move home during your fixed rate period? With traditional fixed rates, you might have to pay a fee if you want to break the fixed rate and take out a new loan. With our longer-term fixed rates, if you want to move home during your fixed rate period, you can take your existing rate with you.
Fixed rates that provide real value
The following table shows our range of longer-term fixed rates at different Loan to Value percentages, as well as the relevant Annual Percentage Rate of Charge (APRC). APRC is explained below.
|Loan to Value(%)||10 Year Fixed||APRC||15 Year Fixed||APRC||20 Year Fixed||APRC||25 Year Fixed||APRC|
|50% or less||2.90%||2.93%||2.90%||2.96%||3.00%||3.07%||3.15%||3.22%|
|60% or less||2.90%||2.98%||2.90%||2.97%||3.00%||3.07%||3.15%||3.22%|
|70% or less||3.05%||3.10%||3.05%||3.11%||3.15%||3.22%||3.30%||3.47%|
|80% or less||3.15%||3.18%||3.15%||3.21%||3.25%||3.32%||3.40%||3.47%|
|90% or less||3.35%||3.38%||3.35%||3.42%||3.45%||3.53%||3.49%||3.57%|
What is Annual Percentage Rate of Charge?
APRC lets you compare interest rates from one lender to another. It includes all the costs of the loan such as getting the property valued and the rates you may go on to after a fixed rate period ends. This is why the APRC can be different to the actual interest rate, which doesn’t include these costs.
How we decide rate reductions
We will decide rate reductions by comparing your mortgage balance at each monthly repayment date to the most recent valuation we have of your property. This will be either the original valuation from when you first bought the property or any updated valuation you may have provided us with since then.
How we apply rate reductions
As you loan to value percentage (LTV) decreases over time, we will automatically apply the relevant LTV fixed rate.
The rates that you will be reduced to as your LTV falls are fixed (locked-in) when you take out your mortgage. In the table below you can see a sample of 10 year fixed rates:
|50% or less||2.90%|
|60% or less||2.90%|
|70% or less||3.05%|
|80% or less||3.15%|
|90% or less||3.35%|
For example, if you had an LTV of 75% when you took out your mortgage, you would begin on a rate of 3.15%. As your LTV reduces over time and you move from LTV band to LTV band, your rate would fall from 3.15% to a final rate of 2.90%. Future rate changes will not affect these rates – they are yours from the outset.
Transferring a fixed rate to a new property depends on credit assessment
If you decide to move property, you may be eligible to transfer your fixed rate to a corresponding balance on a new loan for any remaining period of your original fixed term. Any transfer of rate will be subject to credit policy at the time of application. Only 10, 15, 20 and 25 year fixed rates can be transferred. You must be at least 3 years into your fixed rate period to transfer your rate.
Selling before transfer of security
If you sell your property before the transfer of security, the option to transfer the existing rate to the new property will only be available to you for 3 months. We may consider exceptions on a case-by-case basis. If you sell your current property before the transfer of security, that loan must be paid off in full. This may lead to an early repayment charge (ERC). Where an ERC applies, your solicitor will hold an amount equal to the ERC from equity generated on the sale of the first property. Equity is the difference between the current value of your home and the amount you owe on it. For example, if your home is worth €400,000 and your mortgage is €100,000, then you have equity in your property of €300,000. You will only have to pay an ERC if you do not complete your new loan with Finance Ireland. The ERC is calculated as follows:
ERC = (F-F1) x P x (T ÷ 365)
|F||Funding cost at the date the existing fixed rate applying to the loan was set|
|F1||Funding cost at the early repayment date|
|P||Loan amount which is subject to the fixed rate and which is being repaid|
|T||Number of days remaining or unexpired time in days to the end of the fixed rate period|
We have capped the maximum ERC that you may have to pay and we show you this in the table below. For example, if you are in year 6 of a 10-year fixed rate the maximum ERC that may apply is 2.5% of the mortgage balance remaining to be paid.
If the actual ERC on the date of breaking the fixed rate is lower than the applicable capped maximum, the lower amount will apply. This benefits you.
|ERC Period||10 Year Fixed||15 Year Fixed||20 Year Fixed||25 Year Fixed|
|Year 0-5||5% of balance||5% of balance||5% of balance||5% of balance|
|Year 5-10||2.5% of balance||2.5% of balance||2.5% of balance||2.5% of balance|
|Year 10+||Term completed||1.5% of balance||1.5% of balance||1.5% of balance|
|ERC Waiver (where you don’t have to pay any ERC)||No waiver. ERC will apply for the full term||ERC will not apply for the last 3 years of the term||ERC will not apply for the last 5 years of the term||ERC will not apply for the last 7 years of the term|
At the end of the fixed rate period, if you do not choose another rate, the lowest variable rate that you qualify for based on your LTV will be applied to your loan for any remainder of the term. These rates are for your main home only. Buy-to-let properties are excluded. The maximum loan amount you can apply for is €1,000,000. The property must be worth at least €125,000.Lending terms and conditions apply. The cost of a €100,000 mortgage over 20 years (240 monthly instalments) is €562 every month at 3.15% variable. Annual Percentage Rate of Charge (APRC) is 3.22%. The APRC includes a €150 valuation fee plus VAT. The total amount you would pay on this €100,000 loan is €135,173. You must also take out property and life insurance. You are mortgaging your home to secure the loan. The maximum loan is generally:
- three and a half times your gross annual income, and
- 80% of the property value (or 90% of the property value if you are a first-time buyer).
A 1% interest rate rise would increase monthly repayments on a €100,000 mortgage by €52 per month.
Legal and Regulatory Warnings
Where the loan has a fixed rate:
Where the loan is to consolidate debts: