Homeowners advised to stick with Variable Mortgages
Written by JDPGlobal | Tuesday, 20 September 2005
Homeowners are warned to be cautious when changing to fixed interest mortgage from variable mortgages. They seem to be confused on whether to stick with variable rates or to move into fixed interest rate schemes.
The banks predict an economic growth of five percent for the financial year of 2005.
A spokesman of Irish Mortgage Corporation reminded customers to think twice before changing mortgages. He opined that homeowners have to be well studied and cautious at any given point before deciding on whether to opt for fixed or variable interest rate, irrespective of their mortgage type.
He also added that the homeowners have to realise that it is a double-edged sword, where people may reap tremendous benefits from fixed interest rates if the variable rates go up, they may end up paying the bank for a risk that it has not taken, making the mortgage more expensive than it should be.
