Fixed Rate Mortgage

razor12345

Hi

About 2/12 years ago, I signed up for a 3 year fixed rate motgage rate, as I am approaching the end of this rate Im just looking to see what my options are, will the bank offer me a new fixed rate?, it there is a cheaper rate offered by a competitor can I switch my mortgage, if I do whats are the costs involved?, since getting the mortgage I have also taken out a car loan will this affect me if I switch?

Thanks

JD24

Hi,

I was in the same position in March of this year. My 3 year fixed rate of 3.54% was coming to an end that month and the new rate i was offered was 5.69%!!!!! My mortgage went up over €200 a month! I'm in the process of switching my mortgage. Shop around, most banks have different rates. Legal costs are invovled and this should be no more than €1,000 but some banks have offers of free legal services. I know EBS offer free legal fees if you use their panel or €750 (?) towards your own Solicitor but there is a clause that you have to stay with them for 5 years or you pay back the legal fees. Permanent TSB also have a similar offer with no clause.

snapplejacks

i'm in the same boat. fixed rate of 4.39% ends in july.

What I want to do is go for a long term fixed rate, maybe 10 yr….paying high fees every 2 yrs on fixed rate deals is no good.
So as the lenders fees aren’t great at the minute and inflation has got very high I’m thinking about holding out for another year to see if the fees and rates come down…in the meantime I switch to the bank’s standard variable rate of 7%....i can get my term extended to 30 yrs however to reduce the monthly payment.

adam.number2

Hmmm, 7% seems very high for a variable.. have a look at

http://www.mortgages.ie/remortgaging.cfm

or just google mortgages, there are trackers out there that are less than that. Here's a rate list

http://www.mortgages.ie/mortgages/rates.cfm

AIB have a tracker at 4.67. Personally, there's no way I'd go for a fixed rate at the moment. Way too much credit uncertainty out there, making people nervous and increasing the rates.

beeno67

snapplejacks wrote: »

i'm in the same boat. fixed rate of 4.39% ends in july.

What I want to do is go for a long term fixed rate, maybe 10 yr….paying high fees every 2 yrs on fixed rate deals is no good.
So as the lenders fees aren’t great at the minute and inflation has got very high I’m thinking about holding out for another year to see if the fees and rates come down…in the meantime I switch to the bank’s standard variable rate of 7%....i can get my term extended to 30 yrs however to reduce the monthly payment.

7% is madness. It is simply throwing money away. 10 year fixed is very long but if you are certain you will not sell property in next 10 years at least it will protect you from large rate rises (if they happen which is unlikely). What do you mean "paying high fees every 2 years on fixed deals is no good"? You should not have to pay fees unless you change mortgage lender.
The best way to approach it, is to shop around for the best deal you can get. Get this deal in writting and then go back to your current lender and ask them to match it. They will almost certainly either match it or come close to it, so you get a good deal without the hassle ofhaving to change lenders.

snapplejacks

my thinking is long term hold on the property concerned which is why i want to hold out for a good long term deal if and when it appears. by continuing with my current lenders standard variable and extending term to 30 yrs which only costs an admin fee of 10 stg (currently 21 yrs remaining) temporarily it is only about 60 per month extra, so this doesnt bother me too much

i would've liked a short-term tracker or capped currently but the fees are monstrous..1000stg plus. current best fixed deals are about 5.59% but i'm not paying a 1000 fee. i believe that once inflation is controlled and lowered (this may not be today or tomorrow but i am sure it will happen) then lenders can then start to lower their fees and rates at whcih pointt i can take my long term fixed deal....

tHE vAGGABOND

tbh 7% is pure insanity..

Sounds like a "we dont want the business, so think of a number and double it and offer them that" kind of quote!

IMHO, as someone else said, get a tracker which offers to track ECB at below 1% - so you are paying 4.x% - not 7%!

The_Conductor

tHE vAGGABOND wrote: »

tbh 7% is pure insanity..

Sounds like a "we dont want the business, so think of a number and double it and offer them that" kind of quote!

IMHO, as someone else said, get a tracker which offers to track ECB at below 1% - so you are paying 4.x% - not 7%!

In fairness he mentions sterling- and the current BOE rate is 5%- so a rate of just over 6% would be expected in the short term (though 7% does seem excessive).

snapplejacks

yes, sorry its a sterling mortgage

tHE vAGGABOND

I banked with Barclays when I was in the UK, and found them terrible value in everything

Here are their fixed rate products: http://www.woolwich.co.uk/mortgages/fixed-rate-mortgages.html 10 yrs fixed @ 6.4%..

I bet you that you could find some products/rates which could beat their rates pretty easily too tbh..

jdivision

Watch for the small print in tracker mortgages. Banks apparently changed them recently to say they can change the rate at which they track the ECB rate.

jennyhicks

Many people say, get a tracker as the interest rate will more likely go down than up but with the ever increasing costs of food and bills, if you manage to get a decent fixed rate deal, I think you should take it. At least you know how much you are paying each month for the mortgage. These tracker deals are all quite a short term as well, as mentioned in a previous post, having to pay out admin fees each time you move mortgages, even moving mortgages within the same company incur admin costs as well, scandelous!

MortgageBrbr

razor12345 wrote: »

Hi

About 2/12 years ago, I signed up for a 3 year fixed rate motgage rate, as I am approaching the end of this rate Im just looking to see what my options are, will the bank offer me a new fixed rate?, it there is a cheaper rate offered by a competitor can I switch my mortgage, if I do whats are the costs involved?, since getting the mortgage I have also taken out a car loan will this affect me if I switch?

Thanks

If you wait 3 years before switching there will not be a breakage charge. If you switch within the 3 yr period there will be a charge involved.
As far as switching is involved you will have the followings costs.
Legal approx €1k
Valuation €130.00
You may have to amend your existing mortgage protection cover.

The car loan should not affect the switch, you could always consolidate the car loan and reduce your monthly repayment.