Determine the Mortgage Length

Deciding the length of your mortgage is a balance between your monthly repayments and the total interest you will pay on your loan. Increasing the length of your mortgage will spread your repayments out over a longer period of time while reducing your monthly payments, but you will also accrue more interest.

Here is an illustration of how different mortgage lengths impact your monthly payments and total Cost of Credit. This example is for a €300,000 loan with a 3% interest rate.

As you can see, opting for a higher monthly repayment to shorten your mortgage length can save you a significant amount of money.

How long can my mortgage last?

The maximum length of your mortgage will depend on your age and overall health, with banks being more willing to extend the length of mortgages of younger people. Lenders in Ireland typically max out at 35 year mortgages however recently a small number of lenders have begun to offer 40 year terms.

What happens if I want to end the mortgage before the term ends?

If you want to move home or change your mortgage contract before your fixed term ends you'll usually need to pay a 'break fee' to your lender. These fees are calculated by a formula set by the European Central Bank and can range from very little to thousands of Euro. As general guide, when interest rates go down your break fee will get higher.