Fixed rate mortgage coming to an end

p to the e

Hi all, we have a 30 year mortgage that was fixed rate for 3 years at 2.5% but that is coming to an end this May. What are some of my options? I'm a bit clueless. Thanks.

Liam O

Your institution will have a list of rates available. They will be fixed or variable. They will write to you in April most likely and you can can make an appointment with a mortgage advisor on the back of that if needed. Unless you plan on switching they will be your options.

Personally I would go short term fixed rate as there will probably be a decent drop over the next couple of years.

p to the e

https://www.boards.ie/discussion/comment/121728737#Comment_121728737

You say I can make an appointment with a mortgage advisor. Is that someone within the bank or someone independent?

listermint

https://www.boards.ie/discussion/comment/121728737#Comment_121728737

Hear this often, but there's no real evidence of cheap money coming available. Not least anything like there was last 10 years.

shane b

If you want want to prepare yourself some of the providers may have their existing rates on-line.

My sister in law's fixed rate ended at christmas with Bank of Ireland and the rates offered to her are the same as on the website.

https://personalbanking.bankofireland.com/borrow/mortgages/rate-table/

JVince

Who is your mortgage with and do you have a B3 or better rating?

The B3 or better rating will get you decent rates.

As currently rates are based on the horrendously low deposit rates banks pay, it's unlikely they will come down in tandem with the ECB drops

Hawkeye123

Interest rates can't come down till wage inflation slows.

Philip Lanes says so.

Padre_Pio

https://www.boards.ie/discussion/2058334950/fixed-rate-mortgage-coming-to-an-end

I would call a broker as well and see if you can switch mortgage to a cheaper provider.

Just be warned that switching mortgages is basically the same amount of work as taking out a mortgage.

p to the e

https://www.boards.ie/discussion/comment/121742041#Comment_121742041

Our mortgage is with PTSB. What's a B3? Is that a BER assessment? If so our house wouldn't be B3 or higher.

Is there independent advice available for such things or is a broker the way to go? I'd also like to increase the payments on the mortgage by a small amount.

phormium

Just in case you are confused about the fixed rate ending the usual would be just to continue on with the same lender at another rate they are offering. It's not a given that you must move the mortgage to another lender, you can of course do that if you are getting a much better deal but basically it's like applying for a new mortgage all over again, all the paperwork/fees etc unless the new bank has a deal on offer to pay fees or a cashback offer.

If you want to increase the payments that is something you can do with your existing lender too. Maybe make an appointment to speak to someone in your existing bank and see what is on offer or likely to be and if you feel you want to switch lender entirely then have a look at what rates other banks are charging and prepare your paperwork for the new mortgage application.

thebiglad

A lot will depend also on your loan to value - if you feel your property has increased in value a lot (or you have had the mortgage for a while) it might be worth getting a valuation done (or check what similar the area are selling at) - if you can get LTV under 60% you'll get better rates than LTV of 75% etc. You can do this without the need to move the mortgage and relatively cheaply/easily. I did it couple of years ago by simply advising them of a new value which they accepted.

p to the e

https://www.boards.ie/discussion/comment/121745560#Comment_121745560

Thanks. Very helpful. My main worry was that we had/have a relatively low fixed rate for the last 3 years and all the talk of variable rates going crazy got me worried. I'm just being paranoid that if I go to discuss my options with the bank that they're out to "get one over" on you which I suppose is just silly.

thebiglad

https://www.boards.ie/discussion/comment/121745707#Comment_121745707

I have been on various fixed rates down the years, with your existing bank you will simply get a menu of options (number of years and the rate which applies for that selection and what the cost is to you) - tick a box and return and you're fixed again - they won't try to get one over on you but they will only offer their own rates and products which may or may not be the best in the market.

cr-07

In a very similar position to the OP. Currently with PTSB, and have the following Fixed Rate deal ending in June:

Current rate: 2.95%

Current mortgage balance: €120,000

Current monthly repayments: €480

Remaining years: 32

Old Property value: €210,000

New Property value based on similar house sales in the area & extensive renovations (not evaluated yet): €300,000

A couple of changes in income have also occurred over the past 3 years (I have got a couple of salary increases & my wife has taken up employment.)

With all these details and running through online calculators, we would like to start repaying extra to bring down the years to pay off the mortgage sooner. We were thinking of requesting to increase the mortgage payments to €1000 per month, reducing the term to roughly 15 years.

would the best course of action do people think?

JVince

if you are looking at overpaying, then the decent variable rates are the best choice for now. Variable rates are unlikely to increase, but don't expect decreases either even if the ECB drops by 1.5% over the next 12months as their variable rates is currently below the ecb rate

But keep an eye on fixed rates and if they fall under 4%, there might be some value and peace of mind

Mac-Chops

In a similar position myself and currently progressing with a jump from BoI to PTSB. Variable rate is similar and they seem to be one of the few offering any kind of cashback deal, both at drawdown and on monthly payments.

Their current fixed rates aren't great though but hoping rates start leveling out before fixing again.

Below outlook from the Economic Eye Winter 2024 Forecast is positive at least:

p to the e

https://www.boards.ie/discussion/comment/121757261#Comment_121757261

I'm no financial guru but from what people are saying above is that it will take some time before any inflation % decrease is felt in the mortgage market. So it might take even longer than that timeline.

In my view I will have to weigh up whether putting in a lot of work to switch a mortgage is worth the hassle if it doesn't actually save me that much. I think I will wait and see what PTSB will offer and go from there.

Mac-Chops

https://www.boards.ie/discussion/comment/121758117#Comment_121758117

I can confirm that the time and effort part of switching has been an absolute drag and a painful process even to this point for sure and I'm only at valuation stage.

I've been on the look since last November and rates are definitely improving so hopefully the sub 4% fixed rate options become more common later in the year.