continued interest rate rises

marbar

appolgies if this is sounding repetitive with the talk of the day


I have read in a few places today that interest rates on mortgages could be set to go up by 4% throughout the year (politics.ie posters referencing eddie hobbs) and obviously this frightens the bejesus out of me

Knowing that these rises are probable, can people pay in to have their variable mortgage changed to a fixed now?

May sound like a stupid question (shamefully I have no idea about the terms of my own mortgage), but I know that people paid to get out of fixed rates when the variable rates were tumbling

Paulw

Contact your bank/mortgage broker and ask.

The answer is, most probably, yes.

penexpers

You don't "pay in" to go fixed - you just go and request if off your bank.

I would only go fixed if you want to have security in knowing how much your repayments are going to be for x years - I wouldn't go fixed to try and beat any potential interest rate rises - it generally doesn't work.

marbar

penexpers wrote: »

You don't "pay in" to go fixed - you just go and request if off your bank.

I would only go fixed if you want to have security in knowing how much your repayments are going to be for x years - I wouldn't go fixed to try and beat any potential interest rate rises - it generally doesn't work.

why not?

lazernuts

Should I hold onto my tracker mortgage? - the lowest my mortgage lender is offering to fix is at 5.65%.

marbar

ah i see, they won't ffix it at teh current variable rate, but will offer another rate to fix for X anmount of years

penexpers

lazernuts wrote: »

Should I hold onto my tracker mortgage? - the lowest my mortgage lender is offering to fix is at 5.65%.

It depends on your margin, but in general it's advisable to retain trackers.

penexpers

marbar wrote: »

ah i see, they won't ffix it at teh current variable rate, but will offer another rate to fix for X anmount of years

Yeah fixed rates are higher than variable rates. The bank is predicting where interest rates will go and is factoring that into the fixed rate.

Paulw

In general (not in all cases)

Tracker is lower than variable
Variable is lower than fixed
And fixed has a set rate (normally highest) depending on the number of years it's fixed for.

TheDriver

I wouldn't give up my tracker for love nor money at moment to be honest.

Trampas

TheDriver wrote: »

I wouldn't give up my tracker for love nor money at moment to be honest.

I am with you.

I have ECB +.75% will take something to get me off that

Colonel Sanders

Most sources I have read claim that, from the banks point of view, the economic lending rate is over 4%(eg see here). Most SVR's are lower than 3% at present. They are only going one way

If it wasn't for political influence/interference (you choose!) I have a feeling the last few ECB decreases wouldn't have been passed on

Cabaal

lazernuts wrote: »

Should I hold onto my tracker mortgage? - the lowest my mortgage lender is offering to fix is at 5.65%.

I'd say yes as they are rare as hens teeth and while the interest rate is low your getting the best deal, what % are you paying?

TheDriver

1.6% believe it or not!!!
AIB came out with a better tracker when rates were very high and of course they are stuck with me now! Wooooohoooooo

Cabaal

TheDriver wrote: »

1.6% believe it or not!!!
AIB came out with a better tracker when rates were very high and of course they are stuck with me now! Wooooohoooooo

You'd be crazy to move from that
I wish I was so lucky....

Your likely costing AIB money

gent9662

I got 0.75% above ecb rate from Bank of Ireland, tracker that is.

How does this compare with other trackers?

TheDriver

Oh they love ringing up asking me about "better" products thinking I don't know what I am paying. I usually have to say everything is grand except for the interuption via phone calls!

Tippex

also lets not forget there is a reason why none of the lenders now offer tracker mortgages.

So like me if you have a tracker stick with it.

waffleman

WOW some good tracker rates there!

My 2 year fixed rate ended this month with BOI. They offered me ECB + 1.25% - with all the talk of variable rates going mental i think i would have been a fooi not to take it.

My mortgage payment has gone down 20%. wonder where rates will go now....

gaeilgegrinds1

AIB 1.25% on tracker, should I stay or should I go?!

TheDriver

oh stay as you can always move but never go back! Irish banks are never going to be lower than ECB + 1.5% in the foreseeable future on their own variable rates

waffleman

TheDriver wrote: »

oh stay as you can always move but never go back! Irish banks are never going to be lower than ECB + 1.5% in the foreseeable future on their own variable rates

I really hope this is true!

Kashkai

My tracker with Halifax is at 1.75% and I know this is probably a loss maker for them.

I wonder if that explains why I get such sh1t service from them every time I ring up with a question or why they don't send me an annual statement of my current mortgage position despite my asking 4 times for it last year.