PIBA warns mortgage holders that lenders could increase interest rates

ONE of the country’s largest insurance and mortgage industry representatives has warned consumers that a low European Central Bank (ECB) interest rate will provide no barrier to Irish-based lenders increasing their own rates.

The Professional Insurance Brokers Association (PIBA) said over zealous lending criteria is blocking first-time buyers from entering the mortgage market at a time when properties have shrunk in value. It also advised mortgage holders on variable rates to consider fixing them for longer periods.

“Mortgage holders would be well advised to consider fixing for periods of five years or longer. Fixing at a good rate for longer terms gives security and enables better planning. It’s likely that the low cost fixed rates on offer now will rise at the same time that variable rates increase, meaning you may miss out on taking advantage of such low rates,” said PIBA’s director of mortgage services, Rachel Doyle.