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Getting of fixed rate

  • 09-08-2009 9:03pm
    #1
    robseven
    Closed Accounts Posts: 11 ✭


    Hey,
    Looking for a bit of advice and info. My fixed rate mortgage is up in October I am paying €1300 per month this is at 5%. Should I fix again and has anyone come out of a similar situation and wondering how much my payments will fall.

    Thxs


Comments

  • #2
    FoxT
    Closed Accounts Posts: 4,204 ✭✭✭FoxT


    I am not a finance professional. Do go to a mortgage broker or independent financial adviser!

    A fixed rate mortgage is like an insurance policy. You pay a premium for the peace of mind of knowing that your monthly cost is going to be constant. Almost always, fixed rate will be more expensive than variable rate over the life of the mortgage.

    Interest rates are at historically low levels. They are so low now, that for all practical purposes they cannot fall any further. The prices of long term fixed rate products indicate that all the banks are expecting rates to remain low for the foreseeable future.

    you can find details of variable and 1, 3, 5 and 10 year fixed rates here:

    http://www.finfacts.ie/fincentre/mort.htm

    costs vary from about eu5.34 to eu 6.50 per 1000 eu owed.

    If I was in your position I would look closely at a variable rate product where you could continue paying your current monthly premium of 1300. This will have the effect of dramatically reducing the length of time it takes you to pay off your mortgage.

    You may also be able to do a split, where half your mortgage is fixed & the other half is variable.

    Get professional advice, look at all the options, and shop around.

    Best of luck, FoxT


  • #3
    robseven
    Closed Accounts Posts: 11 ✭robseven


    Thanks Fox T. I know its the million dollar question at the moment! Liked the idea of the 50 - 50 and link was good. Will let you know in 5 years if i made the right choice :)


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