Will Variable rate of 4.95% go up or down?

Daithi07

Ok, I know we cant really see in to the future or have a crystal ball. I am looking for boardsies opinions of the future likelihood of this rate dropping or rising?
I am just coming out of a 3 year fixed term of 5.6% after buying a house in 2008. I have my mortgage with Ulsterbank.

My options are:

2 year fixed at 4.50%

3 year fixed at 4.95%

Standard variable rate at 4.95%

Could anyone offer any advice on what to do as i am clueless when it comes to these matters? I'm leaning towards 2 year fixed but if the likelihood of variable has more than 60% chance of dropping i might go with that. All i'm looking for is your opinion if you have one please and i won't take it as cast iron advice. Thanks in advance

chris85

Daithi07 wrote: »

Ok, I know we cant really see in to the future or have a crystal ball. I am looking for boardsies opinions an the future likelihood of this rate dropping or rising?
I am just coming out of a 3 year fixed term of 5.6% after buying a house in 2008. I have my mortgage with Ulsterbank.

My options are:

2 year fixed at 4.50%

3 year fixed at 4.95%

Standard variable rate at 4.95%

Could anyone offer any advice on what to do as i am clueless when it comes to these matters? I'm leaning towards 2 year fixed but if the likelihood of variable is more than 60% chance of dropping i might go with that. All i'm looking for is your opinion if you have one please and i won't take it as rock cast iron advice. Thanks in advance

I could not see the variable dropping, it may stay as is for the next 6 months at least. Central bank is pressuring the banks not to raise variables and also ECB wont be raising in the next few months and banks use this as an excuse a lot.

Very odd the fixed rate is lower than SV rate. For them rates you are being given I would go for the 2 year fixed.

Daithi07

Thanks for quick reply Chris!

tenchi-fan

I'm with evil PTSB who charge 6.05%.

If I could fix at 4.5% for 2 years I'd jump at the chance!

In your situation... You're immediately saving money on your old rate, you're saving on the current variable rate, and you have peace of mind for the next 2 years. What more could you ask for?

mrs vimes

Hi Daithi,

The 2 year fixed does look pretty attractive.

As an aside, have you checked the wording of your original contract to see if they are obliged to offer you a tracker on the expiry of the fixed rate? I'm not sure when they stopped offering trackers, but in 2008 it's a possibility.

chris85

mrs vimes wrote: »

Hi Daithi,

The 2 year fixed does look pretty attractive.

As an aside, have you checked the wording of your original contract to see if they are obliged to offer you a tracker on the expiry of the fixed rate? I'm not sure when they stopped offering trackers, but in 2008 it's a possibility.

+1

Would definitely check this in case. Banks have been sly doing this to many customers.

Daithi07

I checked the contract tonight and could not find any tracker option, so i'm going the 2 year fixed route. Here's hoping that don't try and pull a fast one and contact me to say there was an error made! Thanks for your input guys!