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Interest rate hikes & letter of offer

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  • 07-07-2011 6:28pm
    #1
    kevin101
    Registered Users Posts: 162 ✭✭


    Currently have gone sale agreed on a property and as of 4 o'Clock today the letter of offer has been posted out to our solicitor from the bank. I am wondering with the interest rate hike today by the ECB will this affect us as presumably the bank will follow the hike with an announcement tomorrow of a rate increase. We had intended on going 4 or 5 year fixed but have not signed anything with the bank yet.
    Thanks


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    #2
    Chris_5339762
    Registered Users Posts: 5,902 ✭✭✭Chris_5339762


    Until the loan cheque issues, you will be affected by any rate increases. Unfortunately for you a letter of offer doesnt count.


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    #3
    kevin101
    Registered Users Posts: 162 ✭✭kevin101


    Thanks for the quick reply Chris.

    Question answered.


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    #4
    BillieB
    Registered Users Posts: 21 ✭BillieB


    You can draw down your loan early that way interest rate hikes wont affect u!! Thats what I did last week!!!


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    #5
    kevin101
    Registered Users Posts: 162 ✭✭kevin101


    I was thinking about that but then you are paying a mortgage for a house that you still do not own. I would be worried that the sellers could pull out at the last minute. We are currently waiting on their contracts.which should arrive before end of July and hopefully have the keys by end of August. It's a bit nerve wrecking as mortgage from Aib and surely they will raise rates very soon. Any other way around this?


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