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Mortgage renewal

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  • 21-08-2009 9:42am
    #1
    Da Ross
    Closed Accounts Posts: 24 ✭


    HI.

    I bought a house three years ago and the mortgage is up for renewal. My loan to value rate is high and no broker will touch me. I got an offer from my bank to renew which is:

    Variable at 3.24%
    and
    Fixed for 2/3 years at 3.99%

    I am currently on a fixed rate of 4.6%

    The difference between the 3.24% and the 3.99% is 100 euro per month.

    Anyone got any ideas on which is best?

    Thanks.


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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Da Ross wrote: »
    HI.

    I bought a house three years ago and the mortgage is up for renewal. My loan to value rate is high and no broker will touch me. I got an offer from my bank to renew which is:

    Variable at 3.24%
    and
    Fixed for 2/3 years at 3.99%

    I am currently on a fixed rate of 4.6%

    The difference between the 3.24% and the 3.99% is 100 euro per month.

    Anyone got any ideas on which is best?

    Thanks.

    Given the relatively positive numbers coming out of germany recently. And the small gap between a 3 years fixed and variable on offer Id suggest going with the fixed rate.

    Theres every possibility that rates will rise a quarter point in the next 2 quarters and also the possibility of many banks raising their margins on their variable rates. that alone almost wipes out the different.

    Im not a big fan of fixed rates but given the figures your quoting Id say go fixed if its 3.99% for 3 years.

    Go variable if they are only offering you 3.99% over 2 years


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