Fixed Rate Mortgage

A fixed rate mortgage is exactly that, it means the rate on your mortgage is fixed and won’t go up or down for an agreed period.

Danske Bank offer fixed rates for either 2 or 5 years. This means your mortgage rate won’t change during that period.

After the fixed rate ends, the mortgage will change to a variable rate. If your fixed rate mortgage is with us, we’ll remind you in plenty of time before that happens so you can explore your options.

You can make a lump sum overpayment during the Fixed Rate Period without incurring an Early Repayment Charge provided the overpayment:

• Is a maximum of 10% of the outstanding balance of your loan
• Is made by way of a one-off lump sum overpayment; and
• Is made once during any calendar year being the period from 1 January to 31 December

In all other cases an Early Repayment Charge will apply.

Early repayment charges are charged based on a percentage of the lump sum you are making or the full balance of the loan if you are repaying it in full. The percentage charged reduces the closer you are to the end of your fixed rate.

See below for our current charges:

• Over 4 years fixed rate period remaining @ 5%.
• Over 3 years and up to 4 years fixed rate period remaining @ 4%.
• Over 2 years and up to 3 years fixed rate period remaining @ 3%.
• Over 1 year and up to 2-year fixed rate period remaining @ 2%.
• Up to 1-year fixed rate period remaining @ 1%.

A fixed rate mortgage can:

• Help you manage your money as you’ll know exactly how much your repayments will be each month.
• Give you peace of mind that your repayments won’t change.

There are a few things you should consider before choosing a fixed rate mortgage.

• You usually can’t exit your fixed rate early without having to pay an Early Repayment Charge. This charge can be expensive if you’ve recently entered into your fixed rate and if you still owe a lot on your mortgage.
• If interest rates go down, you can’t take advantage.

If your fixed rate mortgage is with Danske Bank you may be able to take it with you to a new property without having to pay an Early Repayment Charge. This is called ‘porting’. You can find out more about porting your mortgage.

This will depend on your individual circumstances. A 2-year fixed rate will allow you to review your rate again in the shorter term, but a 5 year will give you payment stability for a longer period. You should think about your short term and longer-term needs.

If you’re unsure, our local mortgage advisors will give you advice on the best options for you.

Check out the ‘repayment calculator’ to see our rates, and get an idea of monthly payments.