Mortgage payers could face €500 increase in monthly payments

Michael Bolton

People with fixed-term mortgages due to run out could face paying an extra 5,800 euro a year

Mortgage broker Doddl.ie (PRON: Doddle dot ie) is urging mortgage holders to shop around, as some on fixed rates of 2.5 per cent could see that rate rise to 5.95 per cent.

For those on a typical €250,000 mortgage, their monthly repayments could go up by €500.

That would mean on a €250,000 mortgage, their repayments could be an extra €5,800 a year.

Doddl managing director, Martina Hennessy, says we're in a cycle of rising fixed interest rates.

She also suggested that now is the best is the best time to shop around if your fixed rate mortgage term is due to run out.

"So those that our rolling out of fixed rates, maybe they have locked in 12 months or 24 months ago, on a very average two and half per cent fixed rate, and rates were as low as 1.9%, will see themselves rolling out of fixed rates on to variable rates, which will start at roughly the four percent mark.

"There's a very big difference between lenders in the market and it's important to make sure when you roll out a fixed rate, that you take control of your mortgage, don't take a wait and see approach, and you look to see if you can save by reviewing your rate and seeing if you can switch to another provider."