Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgages

Options
  • 24-03-2011 9:53am
    #1
    Katz83
    Registered Users Posts: 91 ✭✭


    Hi i am just enquiring whether i should go with a fixed or variable rate mortgage. We are building our first house so would be drawing down in stage payments. if i go fixed for 5 years payments would be €512.00. if i go variable €440.00. This is over a 20 years period 80.000

    If i do go fixed does that mean i have to draw down the full amount of the mortgage. As we are only going to draw down what we need. And am i garanteed the fixed rate once i sign my loan offer. Also is there anything else i should know before i decide to go fixed.,


Comments

  • Options
    #2
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    Hi - those repayment amounts are based on the assumption that the variable rate remains the same - which is pretty unlikely at the moment.
    If you don't want to worry about rate increases for the next 5 years - then go for the fixed rate. It will help you budget better while you are building.
    The variable rate could rise to more than the fixed rate during the next 5 years - it's a gamble .
    Ask if they will fix half and do half on variable .


    www.moneyguideireland.com


Advertisement