Another ECB Drop - 2%

Decks

with another half percent rate drop i feel like im been ripped off with my current 5% fixed mortgage rate, locked in for another year and half, rang EBS who said there would be a 5,000 euro penalty if i came out if it now. Anyway think its worth taking the penalty hit and getting out now?

Tigger

Decks wrote: »

with another half percent rate drop i feel like im been ripped off with my current 5% fixed mortgage rate, locked in for another year and half, rang EBS who said there would be a 5,000 euro penalty if i came out if it now. Anyway think its worth taking the penalty hit and getting out now?

need the figures to work it out

Decks

Cheers Trigger. 338,000 over 35 years, currently at a fixed rate of 5.01% another year and half to go. im 3 year into the mortgage.

Sorry Tigger not Trigger

Eglinton

You'll need to calculate the difference between what you're paying now and what you would be paying on the lower rate. If it's say 200 euro per month, then it would take you over 2 years to reclaim the 5K penalty. You run the risk over the two years of the interest rates going back up again. They could well do.

dny123456

Eglinton wrote: »

You'll need to calculate the difference between what you're paying now and what you would be paying on the lower rate. If it's say 200 euro per month, then it would take you over 2 years to reclaim the 5K penalty. You run the risk over the two years of the interest rates going back up again. They could well do.

Or fall more...which is more likely to be honest.

helimachoptor

My fixed is up in April, and its forecast rates will go down again in the Summer.

The sooner the better.

Eglinton

dny123456 wrote: »

Or fall more...which is more likely to be honest.

True but it's a risk none the less. We've seen how fast they came down. Up can be just as fast. The world got itself into this situation in the first place because we were complacent that things could only get better.

Tigger

at the moment you pay 1700 before adjustment and relief

at 2% you would pay 1150 before adjustments

so with 18 months it would be a difference of 550*18=9900 assuming i'm right and before adjustments

also this assumes the rate stays at 2%

as first if a lender will give you say 2.2% fixed for 5 years and what the repayents would be on that and how hard it would be to acually get approval as new business


tigger accepts no liabality for finiancial pondering on the interweb , terms and conditions apply the banks always win

Decks

Thanks Tigger. So you reckon i should take the hit and pay the penalty?

ZYX

Tigger wrote: »

at the moment you pay 1700 before adjustment and relief

at 2% you would pay 1150 before adjustments

so with 18 months it would be a difference of 550*18=9900 assuming i'm right and before adjustments

also this assumes the rate stays at 2%

as first if a lender will give you say 2.2% fixed for 5 years and what the repayents would be on that and how hard it would be to acually get approval as new business


tigger accepts no liabality for finiancial pondering on the interweb , terms and conditions apply the banks always win

But 2% is the ECB rate. No bank is going to give you 2%. The very best you could hope for is 3.5% and even that is optimistic. At 3.5% you would save less than €5000 over 18 months.

ZYX

Decks wrote: »

Thanks Tigger. So you reckon i should take the hit and pay the penalty?

check first what rate you will get if you switch.

Tigger

Decks wrote: »

Thanks Tigger. So you reckon i should take the hit and pay the penalty?

i haven't a clue really i just did the figures based on the numbers 2% and 5%

there is loads of stuff to consider

go to a morgage broker (i'm sure they're lonley) and find out wht you can swutch to and see what the difference in payments * 18 is

Tigger

i had a quick look and yer not gonna get better thanb 3.7% fixed or 3.4% variable


as i said the banks always win

Victor

Decks wrote: »

i feel like im been ripped off with my current 5% fixed mortgage rate

At the time you were looking for security that it wouldn't go up and it hasn't. You are paying exactly the amount agreed.