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10-04-2019, 16:54   #1
Buying house2020
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Fixing for 10 years? Are we mad?!

Hi,

Considering fixing our mortgage for 10 years, looking for opinions/ advice

Stage of life we are at, we don't plan on overpaying our mortgage in the next 10 years, any spare money we have will be spent on our family and other areas of life.

We are very tempted to lock into the 10 year fixed rate, it guarantees what our repayments will be, are we mad to even consider fixing for 10 years?!
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10-04-2019, 17:01   #2
highgiant1985
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Quote:
Originally Posted by Buying house2020 View Post
Hi,

Considering fixing our mortgage for 10 years, looking for opinions/ advice

Stage of life we are at, we don't plan on overpaying our mortgage in the next 10 years, any spare money we have will be spent on our family and other areas of life.

We are very tempted to lock into the 10 year fixed rate, it guarantees what our repayments will be, are we mad to even consider fixing for 10 years?!
at a reasonable rate, its worth it for the peace of mind IMO.
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10-04-2019, 17:01   #3
averagejoe123
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How much is your house worth and how much is outstanding on your mortgage?
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10-04-2019, 17:06   #4
Browney7
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What bank and what rate options?
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10-04-2019, 19:03   #5
Abba987
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I don't know what your rates are but if your on tracker don't do it
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10-04-2019, 19:15   #6
Samuel T. Cogley
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We fixed for ten years, the security of the payments not changing vs. a possible small reduction in rates was preferable to us. However it's difficult to answer your question without knowing what rate you're fixing at.
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10-04-2019, 19:26   #7
Sleeper12
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Locking in for 10 years is a great idea if you get a decent rate.
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10-04-2019, 20:00   #8
Buying house2020
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3.3% over 10 years

Not on tracker

Last edited by Buying house2020; 10-04-2019 at 20:11.
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10-04-2019, 20:09   #9
Samuel T. Cogley
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Seems a bit high.
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10-04-2019, 20:51   #10
Weltsmertz
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That's too high. Would fix for 10 years at something like 2.9% if it was available but no way at 3.3%
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10-04-2019, 21:38   #11
Treviso
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I presume 3.3% is the new AIB 10 year fixed rate reduced rate? If so, I would look at the 5 year fixed at 2.85%. Will give you the peace of mind you're looking for while not being locked in for so long. Once the 5 years pass, there may be an option to switch to a more favourable lower LTV rate depending on value of house
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10-04-2019, 21:50   #12
Big Wex fan
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I was going to say - you don't know what's ahead of you in 5 yrs from now so your restricting your flexibility in the future but I remembered I was in a 4 year fixed rate on my first mortgage & moved after 3 years. They gave me the option of paying the penalty or stay on the higher fixed rate on the new mortgage. Banks are not gamblers so they think mortgages are going to be lower or equal to what they're offering in long term fixed rate. Of course they're not always right!
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10-04-2019, 21:55   #13
Wheety
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I fixed for 5 years at 2.6%

I think 5 is the sweet spot for fixing.
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10-04-2019, 21:58   #14
Treviso
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It does look like interest rates are going to down further, given this move by AIB. I expect in 3-6 months that their variable rate will drop to 2.8% or similar. But that is just speculating.

Irish times made a good point. In 2012 BOI offered a 10 year fixed at 6.15% - imagine being stuck in that rate now. That is why 5 years in the longest term to go with
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10-04-2019, 21:59   #15
ashes2014
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10 years is a long time. Sometimes its worth it for the security of knowing what you will be paying but not if your paying too much for it-I think 3.3% is a bit high for that.
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