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Is now the time to get a fixed mortgage?

  • 17-05-2009 11:23am
    #1
    jonbon666
    Closed Accounts Posts: 2 ✭


    Can the interest rates get any lower? Just wondering what people think??


Comments

  • #2
    Senna
    Registered Users, Registered Users 2 Posts: 8,800 ✭✭✭Senna


    I've been looking into fixing, 1/2/3 year rates are not good value at all. 5/10 year rates of 4.25% or lower are fairly good (especially 10 year). The problem is the standard variables are very low and i would expect them to be very low for the next 18 months, that means paying a premium now for the advantages down the road. The premium you will be paying for the next 18 months could be alot if you have a standard variable of around 2.5%.

    Its possible that the ECB could drop below 1%, but that does not mean long term fixed rates will drop also.


  • #3
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    Here is a general tip.

    If you do not have a particular reason for fixing, I do nt think you should. The reason is that fixing is an expensive product. Over the course of the loan, it is most likely going to cost you more on average than if you had not fixed.

    Rather than fixing, consider whether you could begin to make larger payments now during a time of low interest rates. When/if interest rates go up, or when something happens to you that stops you paying, you will be ahead on your payments, and you will be able to cut back on them without a default.

    Not for everyone, but it might help some people. You should get financial advice, of course.


  • #4
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    The ECB did indicate that they are not going below 1%. Basically you have 6 months to think about fixing at a low rate.


  • #5
    D3PO
    Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    lets put it this way. The economists in banks dont set fixed rates at a level whereby the banks may lose out.

    There is absolutly no reason ever to fix your rate.


  • #6
    jonbon666
    Closed Accounts Posts: 2 ✭jonbon666


    Many thanks for the advise from everyone, it has definitley given me food for thought :)


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