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Is it too late to draw down the mortgage before the hike?

  • 25-05-2022 1:31pm
    Registered Users Posts: 1,633 ✭✭✭ uli84

    i suppose it is, as i understand the bank can change/increase the % offered up to the day the contracts are signed at both ends, is that right?

    Post edited by uli84 on


  • Posts: 0 [Deleted User]

    Banks can change the rate after contracts signed, right up to drawdown of the mortgage.

    I just had mine renewed at the same offered rate. I'm presuming they are waiting for drawdown to raise it.

  • Registered Users Posts: 3,004 ✭✭✭ phormium

    Drawdown day is the day the rate is definite, anything can change up until then. Sometimes with fixed rates the bank will give a deadline to draw down before the new rate kicks in as in everyone who has loan offer at ?%/?yrs eg has until 1st xyz to draw down.

    That would be a definite loan offer on an actual property and not an approval in principle.

  • Posts: 0 Paul Icy Stringer

    I’ve just received a loan offer for a property, the rate is valid for 6 months. This is with AIB.

  • Registered Users Posts: 717 ✭✭✭ macvin

    People seem to think rates are going into the stratosphere.

    They won't.

    There is likely to be 0.25% increase in July and another in September or October.

    A further 0.25% is expected in early 2023.

    Fixed rates will probably rise 0.25% - 0.5% over the next few months.

    It's a fine balancing act for the ECB. Too much and you push into recession, too little and the market loses confidence.

    Long term the ECB is saying 1-2% interest rates combined with 1.5-2% inflation.