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Mortgage - to fix or not to fix?

  • 10-11-2010 10:01pm
    #1
    loose chippings
    Registered Users, Registered Users 2 Posts: 12 ✭


    Hello all,

    I have been offered the following rates to fix my mortgage interest rates - 4.15% (2 Years), 4.25% (3 years), 4.80% (5 years) - would welcome any advice on what to do - Thanks


Comments

  • #2
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    Hard one. We are discussing a gamble here.

    If your options are variable versus fixed I would nearly take the 5 year fix. Irish banks are completely shot and are steadily jacking variable rates up. With a fix you are out of the firing line for 5 years no matter what happens to the banks.

    If your options are tracker versus fixed the tracker will be lower than the fixed rate for most of the 5 years in my opinion. The ECB cannot easily raise the base rate which is the reference rate for the tracker given the state of the EU and World economy.

    So I would take a tracker over a fix over a variable ...in that order.


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


    Moved to Banking & Insurance & Pensions as this is not a Consumer Issue

    dudara


  • #4
    magentas
    Registered Users, Registered Users 2 Posts: 1,194 ✭✭✭magentas


    Sponge Bob wrote: »
    Hard one. We are discussing a gamble here.

    If your options are variable versus fixed I would nearly take the 5 year fix. Irish banks are completely shot and are steadily jacking variable rates up. With a fix you are out of the firing line for 5 years no matter what happens to the banks.

    If your options are tracker versus fixed the tracker will be lower than the fixed rate for most of the 5 years in my opinion. The ECB cannot easily raise the base rate which is the reference rate for the tracker given the state of the EU and World economy.

    So I would take a tracker over a fix over a variable ...in that order.
    I thought tracker mortgages are no longer available?

    I have a fixed rate on mortgage taken out this year (first time buyer)
    The rates are on the up and look set to keep rising for a long time
    A fixed rate will provide you with stability and I'd recommend at least the 3yr if not the 5yr


  • #5
    Mountjoy Mugger
    Registered Users, Registered Users 2 Posts: 4,487 ✭✭✭Mountjoy Mugger


    Yeah - plug was pulled on trackers a couple of years ago.


  • #6
    tagoona
    Registered Users, Registered Users 2 Posts: 400 ✭✭tagoona


    While new trackers may not currently be available, OP could be currently on a tracker and having a look at cost of fixing.
    OP, banks will always look to add their own % to the ECB rate, whether thats for variable, or even for fixed (they estimate where ECB rate will be in 5 years and then add their %).
    If you're on a tracker, I'd be sticking with that.


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