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NEW MORTGAGE RATES?????????

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  • 25-07-2008 3:15pm
    #1
    mollydolly271
    Registered Users Posts: 290 ✭✭


    :eek:hi i just recieved a letter form my bank today to say our 2 year fixed rate is up and to pick a option but i havent a clue what is best.Are rates going up or down.My options are:

    1. tracker variable ecb+1.25% 5.500%

    2. 1 year fixed 6.250%

    3. 2 year fixed 6.350%

    4. 3 year fixed 6.310%

    5.4 year fixed 6.050%

    homeloan variable rate 5.790%


    Any advice would be gratful as i really dont know much about the economical side of these things! thanks


Comments

  • Options
    #2
    mollydolly271
    Registered Users Posts: 290 ✭✭mollydolly271


    come on somebody out there must be able to offer advice!
    what wud u do???


  • Options
    #3
    Clytus
    Registered Users Posts: 471 ✭✭Clytus


    Im no expert...but personally Id stay with the tracker.

    Iv a feeling the ECB will soon see dramatic falls in inflation and rate cuts will be on the cards again...but like i said..thats a personal opinion.


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    #4
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Forget the 1 and 2 year fixed rates. They are set at an absolutely ridiculous rate.

    Me? I would go with the tracker as it's set at a good enough rate and I don't see much more rate increases (maybe one or two) over the next year, with the possibility of them coming down again in the not so far future.

    If, however, you think rates are going to keep on rising and you can afford the 3 or 5 year rates, you should lock them in now. Ultimately, it's a gamble either way. Nobody (not even the top economist) can predict what rates will be like in 2 years time. As the past 12 months have shown us, there are so many factors out there that can affect us (and all of them have been negative so far:()

    Stay away from the Variable rate. With the current credit crunch, it's the Euribor rate and not the ECB that's costing the banks so much and as such, expect Variable rates to increase more that ECB trackers.

    Not meaning to sound arrogant:D, but how can you not know that rates have been rising? There's probably been at least 1 article in every proper paper everyday for the past 3 years talking about how rates have been climbing!


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    #5
    mollydolly271
    Registered Users Posts: 290 ✭✭mollydolly271


    dotsman wrote: »
    Forget the 1 and 2 year fixed rates. They are set at an absolutely ridiculous rate.

    Me? I would go with the tracker as it's set at a good enough rate and I don't see much more rate increases (maybe one or two) over the next year, with the possibility of them coming down again in the not so far future.

    If, however, you think rates are going to keep on rising and you can afford the 3 or 5 year rates, you should lock them in now. Ultimately, it's a gamble either way. Nobody (not even the top economist) can predict what rates will be like in 2 years time. As the past 12 months have shown us, there are so many factors out there that can affect us (and all of them have been negative so far:()

    Stay away from the Variable rate. With the current credit crunch, it's the Euribor rate and not the ECB that's costing the banks so much and as such, expect Variable rates to increase more that ECB trackers.

    Not meaning to sound arrogant:D, but how can you not know that rates have been rising? There's probably been at least 1 article in every proper paper everyday for the past 3 years talking about how rates have been climbing!


    hi thanks for response,yeah i know they are rising but just wanted to know if they were going to keep rising and just to get other peoples opinion really


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    #6
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    Mollydolly - can I ask who is your mortgage with?


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    #7
    mollydolly271
    Registered Users Posts: 290 ✭✭mollydolly271


    boi


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    #8
    BendiBus
    Closed Accounts Posts: 2,074 ✭✭✭BendiBus


    Have you looked at the possibility of moving your mortgage to another company?

    Any idea of the loan-to-value ratio of your mortgage to the value of your home?

    I believe NIB are still offering good tracker rates if your LTV is less than 80%


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    #9
    parsi
    Site Banned Posts: 5,904 ✭✭✭parsi


    Those rates are hefty -

    AIB has rtaes of 5.61 (apr) for 3-year fixed (20 year mortgage).


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    #10
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    mollydolly271 wrote: »
    boi


    They're old rates, see below:

    http://www.rte.ie/business/2008/0722/mortgage.html


  • Options
    #11
    rummy
    Closed Accounts Posts: 26 ✭rummy


    Hi there...
    Get BoI to reissue with the quotations based on the new rates so that then they will apply to you. Do not assume that the new rates apply to you because they don't because you are contracting with them for the rates that are listed on the letter they sent you (even though they say the rates might be higher and those higher rates would apply - they don't do the reverse).
    Regards
    R


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