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continued interest rate rises

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  • 28-01-2010 5:27pm
    #1
    marbar
    Registered Users Posts: 390 ✭✭


    appolgies if this is sounding repetitive with the talk of the day


    I have read in a few places today that interest rates on mortgages could be set to go up by 4% throughout the year (politics.ie posters referencing eddie hobbs) and obviously this frightens the bejesus out of me

    Knowing that these rises are probable, can people pay in to have their variable mortgage changed to a fixed now?

    May sound like a stupid question (shamefully I have no idea about the terms of my own mortgage), but I know that people paid to get out of fixed rates when the variable rates were tumbling


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    #2
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    Contact your bank/mortgage broker and ask.

    The answer is, most probably, yes.


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    #3
    penexpers
    Closed Accounts Posts: 4,038 ✭✭✭penexpers


    You don't "pay in" to go fixed - you just go and request if off your bank.

    I would only go fixed if you want to have security in knowing how much your repayments are going to be for x years - I wouldn't go fixed to try and beat any potential interest rate rises - it generally doesn't work.


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    #4
    marbar
    Registered Users Posts: 390 ✭✭marbar


    penexpers wrote: »
    You don't "pay in" to go fixed - you just go and request if off your bank.

    I would only go fixed if you want to have security in knowing how much your repayments are going to be for x years - I wouldn't go fixed to try and beat any potential interest rate rises - it generally doesn't work.

    why not?


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    #5
    lazernuts
    Registered Users Posts: 56 ✭✭lazernuts


    Should I hold onto my tracker mortgage? - the lowest my mortgage lender is offering to fix is at 5.65%.


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    #6
    marbar
    Registered Users Posts: 390 ✭✭marbar


    ah i see, they won't ffix it at teh current variable rate, but will offer another rate to fix for X anmount of years


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    #7
    penexpers
    Closed Accounts Posts: 4,038 ✭✭✭penexpers


    lazernuts wrote: »
    Should I hold onto my tracker mortgage? - the lowest my mortgage lender is offering to fix is at 5.65%.

    It depends on your margin, but in general it's advisable to retain trackers.


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    #8
    penexpers
    Closed Accounts Posts: 4,038 ✭✭✭penexpers


    marbar wrote: »
    ah i see, they won't ffix it at teh current variable rate, but will offer another rate to fix for X anmount of years

    Yeah fixed rates are higher than variable rates. The bank is predicting where interest rates will go and is factoring that into the fixed rate.


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    #9
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    In general (not in all cases)

    Tracker is lower than variable
    Variable is lower than fixed
    And fixed has a set rate (normally highest) depending on the number of years it's fixed for.


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    #10
    TheDriver
    Registered Users Posts: 12,515 ✭✭✭✭TheDriver


    I wouldn't give up my tracker for love nor money at moment to be honest.


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    #11
    Trampas
    Registered Users Posts: 7,680 ✭✭✭Trampas


    TheDriver wrote: »
    I wouldn't give up my tracker for love nor money at moment to be honest.

    I am with you.

    I have ECB +.75% will take something to get me off that


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    #12
    Colonel Sanders
    Closed Accounts Posts: 7,669 ✭✭✭Colonel Sanders


    Most sources I have read claim that, from the banks point of view, the economic lending rate is over 4%(eg see here). Most SVR's are lower than 3% at present. They are only going one way

    If it wasn't for political influence/interference (you choose!) I have a feeling the last few ECB decreases wouldn't have been passed on


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    #13
    Cabaal
    Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,497 Mod ✭✭✭✭Cabaal


    lazernuts wrote: »
    Should I hold onto my tracker mortgage? - the lowest my mortgage lender is offering to fix is at 5.65%.

    I'd say yes as they are rare as hens teeth and while the interest rate is low your getting the best deal, what % are you paying?


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    #14
    TheDriver
    Registered Users Posts: 12,515 ✭✭✭✭TheDriver


    1.6% believe it or not!!!
    AIB came out with a better tracker when rates were very high and of course they are stuck with me now! Wooooohoooooo


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    #15
    Cabaal
    Moderators, Technology & Internet Moderators, Regional South East Moderators Posts: 28,497 Mod ✭✭✭✭Cabaal


    TheDriver wrote: »
    1.6% believe it or not!!!
    AIB came out with a better tracker when rates were very high and of course they are stuck with me now! Wooooohoooooo

    You'd be crazy to move from that :D
    I wish I was so lucky....

    Your likely costing AIB money ;)


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    #16
    gent9662
    Closed Accounts Posts: 697 ✭✭✭gent9662


    I got 0.75% above ecb rate from Bank of Ireland, tracker that is.

    How does this compare with other trackers?


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    #17
    TheDriver
    Registered Users Posts: 12,515 ✭✭✭✭TheDriver


    Oh they love ringing up asking me about "better" products thinking I don't know what I am paying. I usually have to say everything is grand except for the interuption via phone calls!


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    #18
    Tippex
    Registered Users Posts: 2,918 ✭✭✭Tippex


    also lets not forget there is a reason why none of the lenders now offer tracker mortgages.

    So like me if you have a tracker stick with it.


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    #19
    waffleman
    Registered Users Posts: 580 ✭✭✭waffleman


    WOW some good tracker rates there!

    My 2 year fixed rate ended this month with BOI. They offered me ECB + 1.25% - with all the talk of variable rates going mental i think i would have been a fooi not to take it.

    My mortgage payment has gone down 20%. wonder where rates will go now....


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    #20
    gaeilgegrinds1
    Registered Users Posts: 1,071 ✭✭✭gaeilgegrinds1


    AIB 1.25% on tracker, should I stay or should I go?!


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    #21
    TheDriver
    Registered Users Posts: 12,515 ✭✭✭✭TheDriver


    oh stay as you can always move but never go back! Irish banks are never going to be lower than ECB + 1.5% in the foreseeable future on their own variable rates


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    #22
    waffleman
    Registered Users Posts: 580 ✭✭✭waffleman


    TheDriver wrote: »
    oh stay as you can always move but never go back! Irish banks are never going to be lower than ECB + 1.5% in the foreseeable future on their own variable rates

    I really hope this is true! :)


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    #23
    Kashkai
    Closed Accounts Posts: 3,399 ✭✭✭Kashkai


    My tracker with Halifax is at 1.75% and I know this is probably a loss maker for them.

    I wonder if that explains why I get such sh1t service from them every time I ring up with a question or why they don't send me an annual statement of my current mortgage position despite my asking 4 times for it last year.


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