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Time to fix your mortgage??

  • 06-03-2010 9:05am
    #1
    rory mc
    Closed Accounts Posts: 3 ✭


    Hi,
    I currently have a variable rate mortgage with AIB of 2.45%, but am considering fixing at this stage..They have a 4 year fixed rate of 3.57% and 5 year of 3.86%.
    The delemna is should I fix now before the expected 0.50% increase from AIB?Will AIB immediately increase their fixed rate when the 0.5% hits? All this bearing in mind that the ECB are unlikely to raise their rates until late this year..

    cheers
    Rory
    Tagged:


Comments

  • #2
    Cabaal
    Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,536 Mod ✭✭✭✭Cabaal


    The banks will always immediately increase rates when the ECB do, they take their time however with rate cuts as its in their favour to get extra money by waiting a few weeks.


  • #3
    dudara
    Registered Users, Registered Users 2 Posts: 33,518 ✭✭✭✭dudara


    Moved to Banking & Insurance & Pensions

    dudara


  • #4
    Happy Monday
    Registered Users, Registered Users 2 Posts: 1,216 ✭✭✭Happy Monday


    rory mc wrote: »
    I currently have a variable rate mortgage with AIB of 2.45%, but am considering fixing at this stage..They have a 4 year fixed rate of 3.57%.

    You can be sure that these rates as quoted will change very soon to reflect the expectation of an increase in the marginal rate.

    My advice is to understand what these fixed rates mean in EUR terms, calculate as a % of your expected income over the next 3-5 years and fix if you are comfortable with the mix.

    As the European economy improves the ECB will look to increase interest rates to avoid inflationary pressures but is only expected to do so slowly given the depth of this global recession.


  • #5
    ch750536
    Registered Users, Registered Users 2 Posts: 3,736 ✭✭✭ch750536


    Apply for a fixed rate, you wont get it. I moved mortgage 6 months ago, made sense as the LTV had reduced dramtically in my situation. Lots of banks advertised fixed rates, none of them would even take an application for one. Fair enough they were straight up about it too once talking to them.


  • #6
    rory mc
    Closed Accounts Posts: 3 ✭rory mc


    hi all, yeah i am fully aware that ECB rates will rise etc etc, but I don't understand the comment that I won't get a fixed rate?? I am with AIB and don't intend to switch, and know they will allow me to move to one of their fixed rate options.. The big question is..when they eventually apply this 0.5% increase to their variable rate, just like Permanent TSB, will that immediately increase their variable rate? Did PTSB's fixed rate increase after their 2 0.5% increases? Basically, trying to time my move to Fixed, without jumping too soon!!..
    Comments?


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