Mortgage renewal

rcottere

Just got renewal letter for mortgage with various options, variable, 2yr fixed, 3 yr fixed and so on. Variable is the chepest but, if the bank decides to raise their rates, is it always flagged in advance so that I would have the chance to go to fixed at the current rate they are offering? Mortgage is with ICS/BoI.

Liam D Ferguson

You get notice from any bank when they are increasing their rates. Sometimes the increase is flagged (officially or unofficially through the media); sometimes it isn't.

In many cases, the bank has already increased the fixed rate options before making an increase to the variable known.

It's very hard to beat a bank at making money.

Scortho

rcottere wrote: »

Just got renewal letter for mortgage with various options, variable, 2yr fixed, 3 yr fixed and so on. Variable is the chepest but, if the bank decides to raise their rates, is it always flagged in advance so that I would have the chance to go to fixed at the current rate they are offering? Mortgage is with ICS/BoI.

What's the difference between the variable and the fixed.
Realistically Variable could easily go up another 1%. Do you want to take that risk, or do you want the assurance that your payment will be the same each month for the next 12, 24, 36.
Out of curiosity were you previously on a tracker before going fixed? If so they have to offer the option of going back on the tracker.

rcottere

4.55% variable as opposed to 4.99% fixed 2 year, never on a tracker so missed that particular boat! Have tended to go with fixed so far for the reason you state, like to know what the repayments will be over a fixed period, cheers for the replies.

Anyone

BoI have said they will be raising rates soon, so that variable rate will rise, and the fixed will rise also. By how much is anybody's guess.

Henry Ford III

Liam D Ferguson wrote: »

...It's very hard to beat a bank at making money.

Except when they gamble the nations finances on an insane property play