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Mortgage Rates

  • 10-11-2007 1:40pm
    #1
    bananarepublic
    Closed Accounts Posts: 87 ✭✭


    Is it better to go fixed for 5 years at the moment with IFG mortgages at 5.05% new mortgage or is one better of risking the variable rates. I always thought the variable is always a better way to go as most lenders factor in profit margins into fixed rates but I have been looking at data that states the base rates are going to go up to at least 4.9% over the next 12 months.


Comments

  • #2
    kaiser sauze
    Registered Users, Registered Users 2 Posts: 1,558 ✭✭✭kaiser sauze


    That is a hell of a commitment to be making.

    My advice, look at the flexibility of that package and see how it would cope with a change/correction in rates. You need to see what this can do for you in the future as much as it does now.

    There could be a hefty penalty for needing to exit this if interest rates plummet. If the US recession hits here, this is a very likely scenario.


  • #3
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    I would be interested to see data that states that the base rates are going to go up to at least 4.9 percent.

    These IFG people obviously haven't heard about this data.


  • #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,286 Mod ✭✭✭✭The_Conductor


    antoinolachtnai wrote:
    I would be interested to see data that states that the base rates are going to go up to at least 4.9 percent.

    These IFG people obviously haven't heard about this data.

    There is no data anywhere stating that rates are going to peak at any particular level. At the moment it is accepted that rates are still too low- but the only thing stopping rates going up at the moment is the ridiculous levels the Euro is at. This is why the European central bank have made yet more calls to the Chinese today to allow the Yuan rise more rapidly, or rebalance it against a more equitable basket of currencies than it is currently done.

    A rising Yuan conversely has unintended side-effects- in that it makes imports from China more expensive, this is particularly an issue for the US- where inflation rates are seen to be spiralling (indeed as they are in the EU too- but we are not at the top of rate cycle yet).

    Interesting times.....


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