Coming off Fixed Rate PTSB Mortgage.

fluffybunny124

Hi there,

Apologies if this has already been covered but I am new to the site.

I am just looking for a little bit of advice.

Currently Four years into a mortgage with PTSB. Am just coming off a fixed rate 2 yr mortgage @ 5.25%.

Have been offered a 2 yr fixed @ 7.25% & 5 yr @ 8.75%. or stay variable @ 5.19%. This is my situation. My mortgage is at present over 1000e per month (inclusive of trs reduction).

When we bought our overpriced house in the boom, like many others when both of us were in good jobs & in full time employment. Unfortunately, my other half is out of work the last 2 years & has gone back to college to further his career , he wont be finished til May 2013. I thankfully am working full time, not a great paid job, but enough to survive (just about). We have never even come close to missing a repayment thank god.

Because we are in negative equity, we cant switch lenders so I am stuck with Ptsb and there extortionate rates.

Can anyone out there advise me on what we should do ? Should I fix @ a higher rate and struggle to meet ends meath or stay on a variable rate in the hope that rates wont increase? I myself am a real worrier so I know that I will be obsessed with checking the Independent or Irish Times to see if there is any word on an increase.

Thanks in advance for your help.

Gareth2011

Not an easy choice to make but I know PTSB do pass on the ecb cuts nearly all the time. I don't see the Ecb raising rates anytime soon if anything they might drop them again. Plus the 5.19 is still lower than 5.25 evben tho its not a big drop every little helps. If I was in your shoes id go variable and if rates start going up again and it gets too much maybe then try the fixed 2 year and hopefully the rates will have gone down by then.

Fiskar

Stay variable. These rates are going no where soon.

fluffybunny124

Garrett & Fiskar,

Thanks a million for your quick replies.

Really appreciate it

corkalien

I would agree with the other two. The variable is the best option of a bad lot.

We came off a fixed two years ago and got offered similar awful options. Luckily our contract said PTSB had to offer a tracker also and they gave us the option of a ECB + 3.25% tracker which we took.

If that hadn't have been there we would have went with the variable too. As the lads said, the ECB isn't going to raise its rates any time soon.

fluffybunny124

Thanks Cork Alien