Best Mortgage for daughter's new house purchase

B

Boston Guinness

Registered User
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16
Hi guys

Just a quick question on behalf of my daughter. She's buying her first house and has received a mortgage quote from Permanent TSB. The bank have advised her that the best mortgage for her would be a 3 year fixed rate at 4.90%. I note their APR rate is actually 3.8%. From reading the financial papers, it's expected that the mortgage rates in Ireland should start going down this year due to decreased inflation issues. My own view is that she should go for the APR rate mortgage and then (hopefully) if the rates go down over the next year or so, fix her mortgage rate at that time.

Would appreciate anyone else's opinion and understand nobody has a crystal ball but just trying to make sure she's not paying over the odds going forward. Thanks!
 
I don't see the 3.8% rate when checking online and can't comment on which way rates might go. But one thing is for certain is that other banks offer better rates than PTSB.
 
First, it might be worth going to a broker to see what other offers there there are. Years ago, I went to my own bank for a mortgage and I should have shopped around.

Second, think of fixing a rate as like taking out insurance. Your daughter will have peace of mind that her monthly cost will not go up for a certain period of time. If she is willing and able to take the risk of higher rates, then she could fix for a short period or take a variable rate and pay a bit less.
 
Definitely speak to a broker to see if there is a better rate on offer.
 
Just to add the APR is a notional rate really and not necessarily a straightforward rate they actually offer
 
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