PIBA recommends fixed rate mortgages - should one

veryangryman

PIBA recommends fixed rate mortgages

"PIBA, the country's largest group of independent brokers, has reacted to the ECB's cut by telling mortgage holders that this could be the best time for them to think about getting a fixed rate.

PIBA spokesperson, Rachel Doyle said that 'the interest rate cut of 0.25% would mean that a person with an average mortgage of €250,000 at a variable rate of 3.55% over a 35-year term would be saving €35.98 a month'.

She added that there is 'great value' in the market at the moment, and that customers should consider fixing their rates before inflation becomes a factor again."


I think another ECB cut or 2 is on the cards before it bottoms out and then maybe a good time to lock into a fixed rate. Im on a tarcker now FYI

Friends, Romans, countrymen, what say you to PIBAs suggestion. i suspect they may have a vested interest, but im not fully clued up on it.

Advice appreciated

Pablo Sanchez

Very much depends on what deal you have......if you are on a tracker of say ECB+1 that means you would currently be 2.25%.

If you were offered a tracker anywhere near that rate i would be amazed.

There is bound to be further rate cuts, at the very very least the ECB will hit 1%............more importantly though these rates are due to be with us for quite a while, IMO not a great time to fix as you could end up cursing yourself.

Plus they wont let you back on a tracker when you come out of the fix period.

dotsman

The one thing about fixed rates that people need to remember. The banks have already priced in the cuts/increases that they are expecting over the term of the fixed period. For example, a further cut in May not result in Fixed rates getting any lower as banks have factored in the likelihood of this.

That being said, I won't fix anytime soon! I don't see interest rates going upwards for at least a year or 2. But I'm only an amateur speculator! (to be honest, I don't think anybody, regardless of expertise, can predict what rates will be like in 2 years time!)

Drumpot

Fixed rates are as much about peace of mind as they are timing the markets.

At 1% (which is what most people believe will be the lowest) the only way I can see fixed rates going is up.

So, how happy are you with your existing rate? Do you think the fixed rate looks good?

Given the way Trichet feels about interest rates i wouldnt be that confident that they will remain as low as they are for as long as they should be. The EU were very very slow to reduce them (they really only did our of dire neccesity). Remember , wrongly, the Interest rates in the EU are soley connected to Inflation rates.

Toots

I was thinking of fixing my own recently, I was at 3.95% fixed until the end of January, and then I rolled to a variable. Luckily with the rate drops, our mortgage has gone to the lowest it's ever been, so I was thinking of checking out the fixed rates too, but they're all round 3.5% to 4% at the moment, and my variable is 2.75%. The only thing is though as dotsman said, there's nobody who can predict what way rates are going to go in 2 years time, so it's really a question of do you want to take a gamble and pay a little extra for the certainty of knowing what your repayments will be for the next few years, or take your chances and hope that the rates stay the way they are now.

gpjordanf1

veryangryman wrote: »

PIBA recommends fixed rate mortgages

"PIBA, the country's largest group of independent brokers, has reacted to the ECB's cut by telling mortgage holders that this could be the best time for them to think about getting a fixed rate.

PIBA spokesperson, Rachel Doyle said that 'the interest rate cut of 0.25% would mean that a person with an average mortgage of €250,000 at a variable rate of 3.55% over a 35-year term would be saving €35.98 a month'.

She added that there is 'great value' in the market at the moment, and that customers should consider fixing their rates before inflation becomes a factor again."


I think another ECB cut or 2 is on the cards before it bottoms out and then maybe a good time to lock into a fixed rate. Im on a tarcker now FYI

Friends, Romans, countrymen, what say you to PIBAs suggestion. i suspect they may have a vested interest, but im not fully clued up on it.

Advice appreciated

NEVER give up a tracker for a fixed, never, you'll NEVER get that deal again. I'm a tracker + 0.9% and I'll NEVER change it NEVER!
Might suit people on Variable but not for the near future!

Hope this clears things up for you.