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mortgage payments

  • 29-02-2012 3:24pm
    #1
    andyone
    Registered Users Posts: 451 ✭✭


    i'm about to come of a fixed rate mortgage.... and the bank i'm with are giving me three options.... a variable rate..... a 2 year fixed rate and a 5 year fixed rate...

    has anyone any advise about coming of the fixed rate..... to variable... or should i get back on the fixed rate wagon.... and if so.... should i go with the two years.. as oppossed to 5 years...... any advise given will be taken on board....


Comments

  • #2
    Mellio
    Registered Users Posts: 287 ✭✭Mellio


    With the fixed you are guarenteed to pay a set amount each month however you will
    miss out any interest rate falls from now until either the two year or 5 year is up.

    saying that you will also miss the rate increases.

    there is no real science to it but really a preference on having static payments of fixed or taking the gamble on the variable in the hope it will stay or go down and not go up.

    I fixed mine 5 years ago and will be coming out of it in July but because I am with the robbers of PTSB the current variable is the same as the fixed I entered into 5 years ago.
    which is around 5.15%.

    I probably wont get a choice of fixed this time around either but be forced onto a variable due to the amount of NE my house is in.

    for me it would depend on the fixed rate being offered, If i felt it was too high versus the variable I would take a gamble on the variable for a while and if there are signs of rate increases then you should still have an option to jump on to a fixed rate at any time, just check this with your bank that they will still offer the fixed once choosing your variable.

    If you go on a fixed rate you cant jump onto a variable until that term is up or pay a hefty penatly for coming out of it.

    Good Luck with what ever you choose.


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