Changing to a fixed rate mortgage?

dobsy

If I were to change to a fixed rate mortgage from a variable what time period is best to go for
2 yr - 5.25 %
5 yr - 5.75 %
7 & 10 yr - 6.1%
any help greatly appreciated

3DataModem

dobsy wrote: »

If I were to change to a fixed rate mortgage from a variable what time period is best to go for
2 yr - 5.25 %
5 yr - 5.75 %
7 & 10 yr - 6.1%
any help greatly appreciated

Depends on how long you are staying in the house, and which financial institution you are with, and how much disposable income you have (and how secure it is).

If you are staying in the house for 7-10 years, have a secure but modest income and can just about afford your mortgage... then perhaps consider a 7-10 year fix. Especially if your lender is flaky (GE money, SMART mortgages, etc).

If you may sell, or your job is not secure, or you have plenty of income, then I'd stick with variable (unless you have a really flaky lender).

The best way to look at it is to estimate that you are paying roughly a 15% premium on average interest rates for the benefits of knowing what it will be month on month. Like an insurance policy of sorts.

Flakey lenders are more likely to f*ck you on interest rates in future (like GE money did to personal loan borrowers while interest rates dropped, they jacked them up).

And another thing... beware of "specific" advice. Everybody is different. I've been fixed, variable, and tracker at various times for various mortgage types. It depends on YOUR circumstances and your risk and financial profile.

In fact, I have a +1% tracker now and I've asked the lender if they want to buy me out of it with a 2.85% 10 year fixed rate! They are reluctant, but not saying no (yet). Feck them, I'll stay on the tracker so!

dudara

Moved to Banking & Insurance & Pensions

dudara

Ogham

dobsy wrote: »

If I were to change to a fixed rate mortgage from a variable what time period is best to go for
2 yr - 5.25 %
5 yr - 5.75 %
7 & 10 yr - 6.1%
any help greatly appreciated

Those rates seem high - who are they with and what variable rate are you on at the moment?

TERRIC

new variable with EBS now 3.23%.

3yr fixed - 4.7%

Decisions, decisions, decisions....

Should we fix?

Ogham

I wouldn't if it was me.
The variable rate may not get as high as 4.7% for 18 months or 2 years. You will be paying extra on the fixed rate which you may never recoup.
Stay variable and put the difference in a savings account - to be used if the rates go up.

www.moneyguideireland.com

dinneenp

according to the paper BOI offering 3 year fixed for 3.39%. Just phoned them and that's going up to 3.79% from Friday (it's too late to get in now).

they can offer variable of 2.75% (that's the new rate from Friday.

Expenses are valuation(about €130) and legal fees (up to €1000).

Haven offer 3.54 3 year fixed.

I'm shopping around myself to switch and will update with what I find to be the best/cheapest.

Ogham

All the lowest mortgage rates can be seen here -
http://www.moneyguideireland.com/mortgages

randombar

So lads, starting to build with the girlfriend hopefully in a couple of weeks, what do you reckon?

I'll be drawing down 200K in 50K sums. LTV I'd like to think would be close to 50%

5 Year Fixed Rates
PTSB 5 Yr Fixed Max 50% LTV 3.7%
Ulster Secure Step Max 94% LTV 3.95%
ICS 4.25% Max LTV 92%
AIB 4.25% Max LTV 92% 4.25%
Haven 4.25% Max LTV 85%
EBS 4.35% Max LTV 80%
BOI 4.39% Max 92 LTV


Lowest Standard Variable Mortgage rates in Ireland .
(For new applicants): Updated June 13th 2010

Haven 2.59% LTV 50% or less
AIB 2.59% LTV below 50%
EBS 2.7% LTV below 50%
BOI 2.75% LTV under 50%
AIB 2.79% LTV 50-80%
Haven 2.79% LTV 50- 70%
BOI 2.85% LTV 80-92% Loan over 500k
EBS 2.85% LTV>50<=80
ICS 2.95% LTV under 50%
AIB 2.99% LTV 80- 92%
EBS 3.05% LTV 80% – 85%
Ulster 3.09% (Not for switchers) Max 90% LTV
EBS 3.1% LTV 86-92%
BOI 3.2% (Max LTV 92% )
Irish Nationwide 3.21% Max LTV 90%

KBC 3.65% Max LTV 80%

Do I go for a fix now??

The big question is how much are the banks going to increase by over the next five years and how much is the ECB going to rise by in the same time? I know the variable rate and the ECB aren't officially tied but I'm guessing the variable will go up any time the ECB goes up, plus whenever the banks feel like it??

MRBEAVER

All banks will follow EBS lead and raise by .5 within a few weeks. strong possibility of another .5 before end of year. ECB rise probably at least a year away.

randombar

So BOI 2.75% LTV under 50%, add .5% to that anyways - 3.25% and another .5% before the year end that's 3.75%. If the ECB goes up .5% a year from now that would mean 4.25% by the end of next year maybe?? Hmmmmm

tony231974

OK was looking to fix,say for example the fixed now is 5% over 3 years.
And veriable is 4%. As we know some of the bank's are putting up the
veriable rate 0.5% to make this one 4.5%.
Would that make the fixed rate go up to 5.5% if I was to look into getting one after the hike.
(I know the fixed rate dosen't change if you have it already)

randombar

tony231974 wrote: »

OK was looking to fix,say for example the fixed now is 5% over 3 years.
And veriable is 4%. As we know some of the bank's are putting up the
veriable rate 0.5% to make this one 4.5%.
Would that make the fixed rate go up to 5.5% if I was to look into getting one after the hike.
(I know the fixed rate dosen't change if you have it already)

Variable definitely isn't 4% last time I checked it was about 2.7%

tony231974

GaryCocs wrote: »

Variable definitely isn't 4% last time I checked it was about 2.7%

I'm with PTSB on variable and the rate is 4.15%

randombar

Ouch, sorry to hear that!!!

peposhi

My curent variable rate is 4.65%. with PTSB :mad:

elchanco

Join the club! PTSB rates & customer service is ****e in the current market. PTSB are gangsters & who better to have advirtising the bank then phil leotardo from the sopranos.

kaiser sauze

A lot of the figures quoted in this thread are introductory rates that balloon after a period of time, usually a year.

Mr Velo

Currently on a variable rate of 4.19% with PTSB.
Phoned them yesterday and the fixed rates they are currently offering me are:

2 year fixed: 5.25%
5 year fixed: 5.75%
7-10 year fixed: 6.1%

Not really sure what to do - should i stick with Variable (likely to jump to 4.69% in a few weeks) - looking at the likely ECB rate increase of 1% in a year or so too.....

More than likely the 5 year fixed at 5.75% will make most sense.

randombar

kaiser sauze wrote: »

A lot of the figures quoted in this thread are introductory rates that balloon after a period of time, usually a year.

Are you talking about variable rate or fixed rate, how would I know if it was going to balloon??

kaiser sauze

GaryCocs wrote: »

Are you talking about variable rate or fixed rate, how would I know if it was going to balloon??

You would have been advised at the time you took out the mortgage that this was "an introductory rate", "special offer", "discounted rate" or somesuch.