Rainy day funds for mortgages
ASKED what people can do if they are being offered an uncompetitive fixed rate, or being denied a fixed rate, Michael Dowling of the Independent Mortgage Adviser Federation said: "Not a lot, unfortunately."
Those who have built up equity may be able to switch, but only KBC and EBS are interested in switchers.
Another option for those who decide to stick with their standard-variable rate is to build up a rainy-day fund, according to Frank Conway of Irish Mortgage Corporation. Mr Conway said this was a better bet than overpaying a mortgage at the moment.
"Since interest rates are only going one way -- up -- mortgage holders must ensure they have a rainy-day fund to cover higher mortgage, protection and insurance costs in the months and years ahead," Mr Conway said.
EBS and Bank of Ireland both pay interest of 4pc a year on regular saver accounts, while Permanent TSB pays 3.75pc. All three permit a monthly maximum saving of €1,000.
Another good tip is to pay off high-interest bills, such as credit cards, advised Mr Conway.