Increased Mortgage Rates

Officer Giggles

Both ptsb and ulster both announced that on a future date they are raising their variable interest rate, do they leave it until then to raise their fixed rates aswell and give people a chance or do they raise them on the day announcement to sucker everyone

km79

as stated in another thread i requested a letter of fixed rates early last week in january. it finally came yesterday dated 31st jan. its says rates are valid for 10 days but subject to variation.
will they honour these rates - 4.3% fixed until october2013

chris85

km79 wrote: »

as stated in another thread i requested a letter of fixed rates early last week in january. it finally came yesterday dated 31st jan. its says rates are valid for 10 days but subject to variation.
will they honour these rates - 4.3% fixed until october2013

That rate should stand. Its a good rate also but personally I would check their 3 to 5 year fixed rate. may be higher but overall i think it would work out better as rates are going to keep going up and lets not forget the ECB havent raised rates yet but once they do the banks will move to raise rates and use this as an excuse.

Officer Giggles

What Im thinking of is can I wait for my bank to announce a rise in the variable rate and then go in and fix it at that days rate or will the bank rise the fixed rates the day they announce their intention to increase the variable in say a weeks time, thanks

wolfe

From yesterdays independent.

"Financial adviser Karl Deeter of Irish Mortgage Brokers said other lenders would follow Permanent TSB. He advised affected borrowers to sign up for a two-year fixed deal of 5.19pc."

lipso

I am with BOS Ireland/Halifax on a sort of tracker (won't go 1.5% higher than ECB base rate) variable rate at 2.4%.
Wondering whether to fix if rates rise. Pay currently €638 pm.Had a quote from KCB - The repayments would be €657.94 on the 3 year (APR 3.93%) & €689.85 on the 5 year fixed (APR 4.24%).

harr

lipso wrote: »

I am with BOS Ireland/Halifax on a sort of tracker (won't go 1.5% higher than ECB base rate) variable rate at 2.4%.
Wondering whether to fix if rates rise. Pay currently €638 pm.Had a quote from KCB - The repayments would be €657.94 on the 3 year (APR 3.93%) & €689.85 on the 5 year fixed (APR 4.24%).

i am in the same boat as yourself,i am 2% at moment with BOS and fifteen years left on my mortgage,i was going to ring to see what they might offer me for a fixed 5 or 10 year rate or would i be mad to change from the tracker.

ferga_com

I'd be very reluctant to give a up a tracker rate as you'll never get one again. When your fixed rate ends, you'll go back onto a Standard Variable Rate and I'd bet my last dollar that the standard variable rate would be far higher than the tracker you're paying now.

So your fixed rate for 3 or 5 years will cost you dearly for the remaining term of your mortgage.

Remember that a tracker rate can only go up if the European Central Bank puts up the base interest rate for all Eurozone countries. So Permanent TSB or Ulster Bank's recent moves have no effect on tracker mortgages at all. I wrote about this recently. http://www.sbpost.ie/themarket/dont-just-take-a-hike-54267.html

harr

ferga_com wrote: »

I'd be very reluctant to give a up a tracker rate as you'll never get one again. When your fixed rate ends, you'll go back onto a Standard Variable Rate and I'd bet my last dollar that the standard variable rate would be far higher than the tracker you're paying now.

So your fixed rate for 3 or 5 years will cost you dearly for the remaining term of your mortgage.

Remember that a tracker rate can only go up if the European Central Bank puts up the base interest rate for all Eurozone countries. So Permanent TSB or Ulster Bank's recent moves have no effect on tracker mortgages at all. I wrote about this recently. http://www.sbpost.ie/themarket/dont-just-take-a-hike-54267.html

Thanks for that and i taught as much,BOS are trying very hard to get me to change from the tracker,a friend of mine on a tracker from another bank was offered a cash lump sum to switch from his tracker and he went from 2% to nearly 5% but he has only got 6 year left on his mortgage.