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Anyone thinking of fixing their mortgage?

  • 01-11-2005 4:31pm
    #1
    GreeBo
    Registered Users, Registered Users 2 Posts: 27,370 ✭✭✭✭


    Hey all,
    currently Im variable with EBS but Im starting to think that a rate hike is on the cards.
    Now that some ofour European friends are performing a bit better I think we will see .25 in the near future.
    Now the question is how bad will it be.
    Its about 4.9 to fix for 5 years so I need to work out the maths as to whether or not I think the variable rate will get to that within 5 years.

    What is anyone else doing?


Comments

  • #2
    copacetic
    Subscribers Posts: 16,616 ✭✭✭✭copacetic


    i never really considered fixing, the way I see it (simplistic maybe) is that with a tracker you are sure to get reasonable value. the banks do all their maths and believe their fixed rates will still make them decent money, they are quite conservative with how they work it out too.

    even if the variable rate went to 4.9 you would still be losing money, it would have to average that over the full 5 years which of course is possible but seems unlikely?? i.e if you could get variable now of 3 or so say for the next 6 months and then it gradually creeps up 0.25%, it would still take 4 years to get to 5% assuming 0.25% every 6 months, it would have to be 0.5% or so every 6 months over the next 5 years to work out the same as fixing at 4.9 now.

    Before everyone starts poking holes I know that would work out worse, but you get the general idea off rough figures...


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