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Fixed Mortgages

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  • 18-04-2007 11:29pm
    #1
    rsta
    Registered Users Posts: 1,261 ✭✭✭


    I know a lot of ye out there are not keen on buying a house at this time.. However I've bought a lovely little house at a pretty good price.

    But I'm not decided on whether I should fix the interest rate for how many years?

    I'm thinking fix it for 1 year.

    What do ye think? All opinions welcome :)


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    #2
    brian_rbk
    Registered Users Posts: 303 ✭✭brian_rbk


    unless you know someone with access to a time machine, im afraid its impossible to know whether to fix your mortgage or not... i bought my first house 18 months ago and was orignally going to go with a 1yr fixed, my broker advised me to go for 2 years because as it was my first mortgage, knowing how much it would be for at least 2 yrs would be handy. Turned out to save me a fair few bob, but either way its nice to know exactly how much ur mortgage will be a good few months in advance.


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    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,280 Mod ✭✭✭✭The_Conductor


    If you are willing to fix for 4-5 years there are good rates available out there.
    It is an insurance policy- that may or may not work in your favour. Time alone will tell. For peace of mind, in a rising interest rate cycle, it does make sense to fix- but how long will the cycle last before turning- and when it turns, is it likely to fall below the rate you are fixed at- once again, who knows. Do the sums- factor in at very least another 1% rate rise (they advise doing 2%)- can you afford to cover that additional cost, if not, fix.....


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    #4
    miju
    Banned (with Prison Access) Posts: 8,486 ✭✭✭miju


    very sound advice there form smccarrick


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    #5
    stovelid
    Closed Accounts Posts: 27,252 ✭✭✭✭stovelid


    Fixed for 5 years myself a year ago.

    It depends on what you want. I like knowing what I'm going to pay for x amount of time and for that, I'm willing to forgo any money I might make if interest rates dipped.


    Also, I agree with smmcarick; if you have any worry about incorporating interest rate hikes into your budget, you should definitely fix.


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    #6
    A Random Walk
    Closed Accounts Posts: 346 ✭✭A Random Walk


    Fixing for one year is almost certainly going to see you lose money (banks typically will be better than you at predicting rates over that short a period). If you're that stretched that you're not sure whether you can cope with variable rates over one year you should reconsider purchasing at all.

    Fixing for longer periods can be a very good idea (even if again you end up losing money).


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