Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Mortgage To fix or not to fix

Options
  • 02-04-2009 5:11pm
    #1
    houseoffun14
    Closed Accounts Posts: 98 ✭✭


    I am looking to get some peoples advice on what they believe I should do.

    I have my mortgage with the Irish Nationwide and currently have an option to go variable or fix the mortgage.

    Normally I fix the mortgage for 12 or 24 months as I like to know what is going out. With their variable rate being 3.74% I am wondering if I should go variable. However they way people are loosing jobs, pay cuts etc, and uncertainty on how long the low interest rate will remain I am thinking of fixing.

    However the fixed rates they are offering seem high, rates the Irish Nationwide are offering are as follows
    2yr fixed 5.45%, 3yr fixed 5.55% and 5yr fixed 5.65%, does anyone else think these are high? Would I be better of shopping around?


Comments

  • Options
    #2
    gaeilgegrinds
    Closed Accounts Posts: 1,376 ✭✭✭gaeilgegrinds


    I've the same query here, on a variable rate, doing well on it but wondering when will it turn...


  • Options
    #3
    ronaneire
    Registered Users Posts: 1,698 ✭✭✭ronaneire


    Even their variable is a bit high?
    Leave it variable if you can. If you feel that the base rate is going to increaase, fix it then.


  • Options
    #4
    gaeilgegrinds
    Closed Accounts Posts: 1,376 ✭✭✭gaeilgegrinds


    How would I know that though?


  • Options
    #5
    ronaneire
    Registered Users Posts: 1,698 ✭✭✭ronaneire


    There is still talk of it coming down another 1/4 %. We always hear on the news when it is either going to go up or go down.


  • Options
    #6
    m_stan
    Registered Users Posts: 1,653 ✭✭✭m_stan


    Go variable for sure. Rates are only going one way - down. Also look at switching. Not sure what your loan-to-value is but that rate seems high. SHop around and see if you can get better.

    If you keep an eye on the newspapers and keep informed about the european economy it won't be too hard when to spot rates are at the bottom, which is when you should go fixed.


  • Advertisement
  • Options
    #7
    3DataModem
    Registered Users Posts: 3,995 ✭✭✭3DataModem


    m_stan wrote: »
    Rates are only going one way - down.

    Really? No interest rate increases in next 5 years? Care to bet on that?


  • Options
    #8
    m_stan
    Registered Users Posts: 1,653 ✭✭✭m_stan


    3DataModem wrote: »
    Really? No interest rate increases in next 5 years? Care to bet on that?

    eh where did I say anything about 5 years? We are almost guaranteed another .25pc rate cut. After that, if you can get a good fixed rate that is worth considering but for how long?


  • Options
    #9
    3DataModem
    Registered Users Posts: 3,995 ✭✭✭3DataModem


    m_stan wrote: »
    eh where did I say anything about 5 years? We are almost guaranteed another .25pc rate cut. After that, if you can get a good fixed rate that is worth considering but for how long?

    The OP mentioned 5 years.

    You seem to think that if rates go down now then the fixed rates will also go down.

    The fixed rates a bank offers are based on their projections over the time period of the fixed rate. I suspect after the next reduction or two the fixed rates will actually INCREASE not reduce.


  • Options
    #10
    m_stan
    Registered Users Posts: 1,653 ✭✭✭m_stan


    time will tell. For me personally, I'm taking out a mortgage soon and it will be a standard variable at the best rate I can get and I'll more than likely stay variable. It's just too hard to second guess how variable rates are going to go in the next 5 years.

    Horses for courses, but this will be my personal approach.


Advertisement