Borrowers can take out far larger mortgages if they borrow at fixed rates for five years than if they borrow at variable rates, according to mortgage brokers.
The anomaly arises because lenders do not have to test the ability of borrowers to cope with rising interest rates if they take a five-year fixed-rate mortgage.
However, lenders must test the ability of borrowers on variable mortgages to see if they can cope with rising interest rates.
Subscribe from just €1 for the first month!
All Digital Access + eReader
Unlimited Access for 1 Month
Then €19.99 a month after the offer period.
€149 For the 1st Year
Unlimited Access for 1 Year
90 Day Pass
Unlimited Access for 2 Years
Get a Business Account for you and your team