Finance Ireland has stopped offering long-term mortgages and now only offers mortgages of less than ten years
Dublin: Finance Ireland’s largest non-banking institution has stopped offering long-term mortgages. Fixed-rate mortgages with terms of ten years or more are temporarily suspended by the company. The company explained that this action was taken as a result of the volatility of international interest rates. The company’s explanation is that these products will start again as soon as the market normalises. In addition, the company stated that it will continue to offer variable mortgages and fixed-rate mortgages with terms of less than ten years.
20-year residential mortgages have been offered since May last year. These were provided at fixed interest rates. This was twice the term of the current market mortgage. The company then announced a list of 10 and 15-year mortgages.
Brokers Ireland, which represents 1,225 broker firms, expressed concern about the withdrawal of long-term mortgages. Even as interest rates rose, Rachel McGovern, the firm’s director of financial services, pointed out that 30-year term mortgages were still available in the United States. The company raised variable and fixed interest rates from 1.5% to 2% in early October. Interest rates on some mortgages were also raised in June.
Finance Ireland’s move could have a significant impact on the general market, with financial sources suggesting that other banks are likely to follow suit.
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