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

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?

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.

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.

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

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.