advice on bidding ??

seahorse

DonJose wrote: »

A lot of fixed rate mortgages will end soon and people will be paying a lot more money they can't afford.

Am very curious about this: Firstly, why will a lot of fixed rate mortgages go variable soon? And when they do, what are the exact implications of that? Somebody told me that when a fixed rate mortgage goes variable it means that all the hikes they would have accrued had they been variable from the start hit the mortgage holder at one go. Is this true???

Also, does anyone know how long the fixed rate term on a mortgage normally lasts? I had a disagreement with my aunt about this recently; I had told her that a friend of mine had fixed her rate for the first five years and she maintained that was practically unheard of in this country and cant have been organised through an Irish lender. I've a feeling she was talking out her arse; was she?

BobbyD10

seahorse wrote: »

Am very curious about this: Firstly, why will a lot of fixed rate mortgages go variable soon? And when they do, what are the exact implications of that? Somebody told me that when a fixed rate mortgage goes variable it means that all the hikes they would have accrued had they been variable from the start hit the mortgage holder at one go. Is this true???

Also, does anyone know how long the fixed rate term on a mortgage normally lasts? I had a disagreement with my aunt about this recently; I had told her that a friend of mine had fixed her rate for the first five years and she maintained that was practically unheard of in this country and cant have been organised through an Irish lender. I've a feeling she was talking out her arse; was she?

Yep there is five year fixed available from drawdown.

astrofool

You can get 1,2,3,4,5,10 year fixed rate mortgages if you so desire, once you go off fixed, you revert to ECB+X% (usually X= .74-.94). You can usually then fix again if you wanted, or mortgage with another lender offering a more favourable rate/better terms. However, if you pay off a fixed rate mortgage early, or want to switch, you pay a penalty. What are the penalties usually, in monetary terms?

It can work both ways, if you fix for 10 years when the ECB interest rate is 5%, and rates drop back to 2%, you miss a lot of savings, however with a tracker, each interest rate rise means higher repayments, which a fixed rate would have avoided (fixed rates are usually good for planning ahead).

seahorse

astrofool wrote: »

It can work both ways, if you fix for 10 years when the ECB interest rate is 5%, and rates drop back to 2%, you miss a lot of savings, however with a tracker, each interest rate rise means higher repayments, which a fixed rate would have avoided (fixed rates are usually good for planning ahead).

Thanks Astrofool; what I'm wondering now though is, how come people go for tracker mortgages with the type of economic climate we've had here in recent years? You'd think with interest rates the way they've been nobody would be taking out tracker mortgages. They must have some appeal that fixed rate mortgages do not; what is it?

The_Conductor

Just a clarification- when you fix your mortgage at a particular rate for X amount of time- at the end of that time period you do not automatically go onto ECB + x, you go onto whatever is the prevailing variable rate at the time. The tracker option will be available to you- but there is no guarantee that you will get a good tracking rate above the ECB rate (as is evidenced by people who have recently tried this and were shocked to be offered trackers at 1.1/1.25% above base rates). When you are aware that your fixed period is ending you need to immediately check to see what your options are- and not just assume that the bank/building society will do whatever is in your best interests.

DonJose

Horgan I hope you are standing your ground, the house market just took another tumble,

"Major housebuilding firms have cut prices at new homes schemes in Dublin and the commuter belt.

David Daly's Albany Group and Kingscroft, the Abbey Group's housebuilding division, have dropped prices at schemes by up to 25 and 11 per cent respectively in an effort to get buyers back into the new homes market."

http://www.boards.ie/vbulletin/showpost.php?p=54891276&postcount=4091

Ginny

To be honest noone is touching Holywell with a bargepole right now, i've been told by EAs that people are looking for properties but not holywell or applewood, Albany had to drop the prices. Plus the fact that if you drive through holywell right now in the evening about 3 out 5 house seem to be occupied, the rest are always dark.
As for bidding stand your ground, don't buckle I am in your position too (without the weird EAs), its killing me but I'm staying away from the phones.

horgan_p

DonJose wrote: »

Horgan I hope you are standing your ground, the house market just took another tumble,

http://www.boards.ie/vbulletin/showpost.php?p=54891276&postcount=4091

yes sir i am indeed. thanks again everyone for the advice

DonJose

GinnyJo wrote: »

To be honest noone is touching Holywell with a bargepole right now, i've been told by EAs that people are looking for properties but not holywell or applewood, Albany had to drop the prices. Plus the fact that if you drive through holywell right now in the evening about 3 out 5 house seem to be occupied, the rest are always dark.
As for bidding stand your ground, don't buckle I am in your position too (without the weird EAs), its killing me but I'm staying away from the phones.

There are 2 almost ghosttowns in Mullingar, Belvedere Hills and Glenmore Wood. They are both nice housing estates but most of the houses are rentals with few owner occupiers. That said there are at least 50 houses unsold in each estate. 3 beds in Glenmore sell of €305k, I saw one today in Daft for €275k.