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Are higher interest rates on the way?

Alison Fearon from Switcheroo.ie Reflects on Comments from the Governor of the Central Bank of Ireland

Last week the governor of the Irish Central Bank stated that the ECB “should not hesitate” to increase interest rates if needed in a response to the rapid rise in inflation. The increase is mainly due to higher energy prices, price rebounds for goods and services that fell during the pandemic and a rebound in demand that is reaching global supply chain issues.

Although he believes this level of inflation (over 5% in October) will gradually decrease, an increase in interest rates would push up the monthly cost of most mortgages. Now could be the perfect time to get on to a fixed rate that won’t change with rising inflation.

The arrival of new entrants has made it possible to get long term fixes with term lengths up to 30 years available. The gamble with these is that if inflation goes down, you won’t be able to take advantage of the possible savings.

With the large rise inflation over the past year, it has become a very important time to review your mortgage and have a long-term plan on how to pay it down. It can be tough to decide what product and term can best suit your needs but when you sign up to Switcheroo, you can get free, expert advice on how to pick the mortgage that’s right for you.

Switcheroo.ie covers all the mortgage provider groups in Ireland and so can provide you with the access to these products and the necessary advice.