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Mortgage rate advise

  • 12-09-2008 10:18pm
    #1
    rikili
    Registered Users, Registered Users 2 Posts: 61 ✭✭


    Hi,

    A question for any mortgage experts...

    I am coming off a standard variable rate mortgage now...and am wondering what my best option is as my bank is offering me the following:

    1/ Tracker variable rate (ECB+1.6800%) - Currently 5.93%
    2/ Standard variable rate - Currently 5.94%
    3/ 2 Year Fixed rate - Currently 6.35%
    4/ 5 Year Fixed rate - Currently 5.99%
    5/ 7 Year Fixed rate - Currently 6.10%
    6/ 10 Year Fixed rate - Currently 6.10%

    Which one do you think I should go for. I'm torn between the Tracker @5.93% and the 5 Year Fixed @5.99%.

    Any advise is very welcome.

    Thanks...
    Tagged:


Comments

  • #2
    Victor
    Registered Users, Registered Users 2 Posts: 78,580 ✭✭✭✭Victor


    The ECB interest rate could go up again - or it could fall.

    If it goes up, can you still pay your mortgage?


  • #3
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,552 Mod ✭✭✭✭johnnyskeleton


    I don't think anyone here can advise you which to go for, because no one here can predict the future and any prediction, if incorrect, could cost you a load of money.

    Generally, if you think the ECB rate is going to stay the same or go down, the tracker takes best advantage of this circumstance. If you think rates will go up, a fixed rate for the duration of these rates would make sense. If you don't want to be locked into any fixed arrangement the variable is the way to go, although you have to consider whether you bank is likely to increase it's rates independently of the ECB (which most of them have done in recent months).

    One other factor is that with some banks, a fixed rate means that if you pay off the mortgage within the fixed term (for example, when trading up), you have to pay them additional interest & penalties, and this can be quite steep.


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