fix mortgage rate now, article in indo

LegacyUser

just read article in indo about fixing your mortgage interest rate.

it say's alot of institutions have already upped their fixed rates, because of the expected rise in interest rates this year, but a couple have not yet increased them, but will, v soon.

i guess it makes sence to fix em, what think ye?

LegacyUser

I can't see interest rates going above 4.5 to 5%
At the moment, variable is about 3.6%. Fixed will have you at @ 4.5 FIXED regardless.

I do feel sorry for those who took out HIGH mortgages and forged their salaries to get that mortgage.

For others .. who were honest about income .. the bump in interest rates does not scare me.

LegacyUser

my variable rate is 3.1% at the mo, with bank of ireland.

their fixed rate, for 3 years is 3.6%

just found out this will be going up tomorrow evening.

i just checked ebs's and ptsb's fixed rate for 3 years, and they're 4.83% and 4.76% respectivly.

i'm asuming boi's will be around this mark.

so, i'm getting them to fax me over the form, and will pop it in tomorrow.

3.6% is pretty good, considering interest rates are expected to go up .5% by the end of the year, or so they say.....

if there's anyone here with a variable boi mortgage, i'd suggest switching to a fixed mortgage

arch20000

I'm with IIB. I fixed last Frtiday for 3 years at 3.69%. Was told that Friday was the last day i could fix at this rate and it would be increasing and they would be changing the fixed rates on offer.

The Tribune last Sunday had the same story about rates going up.

A friend works in IIB and told me rates wre going up .25 shortly and .25 in january but it's hard to know what's going to happen.

Still, I'd rather know what I have to pay.

LegacyUser

Bank of Ireland - Existing Customers

Variable - 3.6%
4 year Fixed - 4.19%
3 Year Fixed - 4.09%
2 Year Fixed - 3.99%

I'm on variable at the moment. I'm just thinking now, the banks are NOT going to loose out here - so what I thak from this is that Bank of Ireland experts do not expect the interest rate to go above 4.19% over the next 4 years? Thats only a .5% increase .. and that is not much.

Divide your mortgage by 100 and half that amount again .. its manageable .. and it isn't going to go above that amount over the next 4 years .. NO way!! Banks don't f**k up!

Victor

bubby wrote:

NO way!! Banks don't f**k up!

No, it only means that someone, not necessarily the bank is willing to accept that rate (less the bank's cut). Remember for every €1 lodged in the bank, the bank have loaned out €10.

LegacyUser

Victor wrote:

No, it only means that someone, not necessarily the bank is willing to accept that rate (less the bank's cut). Remember for every €1 lodged in the bank, the bank have loaned out €10.

Hi Victor, very interested in what you have to say on this. Thanks. I'm not sure I understamd what you mean by the first sentence. Does it not still mean that the bank don't expect it to go above 4.19% in the next 4 years if they are offering that fixed for 4 years??

dil999

bubby wrote:

Hi Victor, very interested in what you have to say on this. Thanks. I'm not sure I understamd what you mean by the first sentence. Does it not still mean that the bank don't expect it to go above 4.19% in the next 4 years if they are offering that fixed for 4 years??

What it means is that the bank can borrow money from a commercial bank at a rate much less than 4.19% fixed for 4 years , and can sell it to you for 4.19% and still maintain their desired margins.

JimmySmith

Dont fix if there is the remote chance you are going to sell in that time. You'll pay

tabatha

i was told by ptsb that i cant get a fixed rate mortgage as i was offered it at the begining of the year when my other fixed rate expired and i didnt take it up then. if i want it now i think they said i would have to pay a penelaty, is this right?