Variable rate

tigershould

MarkAnthony wrote: »

Drinks on you? :pac:

Not quite. Dissapointingly I split my mortgage 50/50 variable/fixed and now wished I just opted 100% variable. I feel furthe cuts in the next couple of years.

MarkAnthony

tigershould wrote: »

Not quite. Dissapointingly I split my mortgage 50/50 variable/fixed and now wished I just opted 100% variable. I feel furthe cuts in the next couple of years.

Both of us get drinks on Mellowbird then! :pac:

tigershould

MarkAnthony wrote: »

Both of us get drinks on Mellowbird then! :pac:

Actually, drinks might be in me, I just read the leaflet that came with the letter and I think they've reduced my fixed rate by 0.25% too.

pat1981

Great to see lending institution beginning to lower their svr. As a boi mortgage holder i am really disappointed that they have not reduced their standard variable rate (svr) appears they wont after reading a article on last Sundays independent. It doesn't suit me to fix my rate, I like the flexibility that a svr offers. My rate is 4.35% and the loan to value is approximately 58%.

I welcomed Mr Noonan intervention and I hope he can exert further pressure on Mr Boucher and the relevant people in his bank to reduce their rates. The investors in boi must be very happy with the svr they currently advertise (must be making a nice sum from this), Senator Fergal Quinn proposed bill looks very interesting and I hope this is enacted.

http://www.irishtimes.com/business/financial-services/senator-s-bill-would-let-central-bank-cap-mortgage-rates-1.2215890

zagmund

tigershould wrote: »

Actually, drinks might be in me, I just read the leaflet that came with the letter and I think they've reduced my fixed rate by 0.25% too.

Say what now?

You had a contract for a fixed rate for a fixed period and they are voluntarily reducing the rate before the fixed period is up. This makes no sense. It means you have a variable rate fixed rate mortgage. Is there anyone in the banks that knows how to run a bank any more?

z

brianon

Got a letter today. My Variable rate mortgage is down by 0.38% (Now 3.95%). Was curious about one thing though...

The letter also had a notice with it about their Fixed Rates. They are offering a 1 year fixed rate of 0.45% lower (3.50%) than my variable.

I thought Fixed rates were always higher than Variable rates ? Would I be mad NOT to switch to the 1 year fixed ?

bidiots

They usually dump you onto the SVR after the 1yr fixed....

doniemaca

brianon wrote: »

Got a letter today. My Variable rate mortgage is down by 0.38% (Now 3.95%). Was curious about one thing though...

The letter also had a notice with it about their Fixed Rates. They are offering a 1 year fixed rate of 0.45% lower (3.50%) than my variable.

I thought Fixed rates were always higher than Variable rates ? Would I be mad NOT to switch to the 1 year fixed ?

I got exactly the same and thought exactly the same .I enquired and there is no charge for changing either.To switch to a one year fixed would be an even bigger interest rate reduction ie. 3.95% to 3.50% for me.when the term is up you automatically go back onto the current variable rate .seems like a no brainer to change for one year,even if the current 3.95% comes down more it probably won't be any lower than 3.50 % within the next year anyway.with all this going on im also woundering if it's actually worth looking into changing mortgage lender for a better deal ?????

brianon

bidiots wrote: »

They usually dump you onto the SVR after the 1yr fixed....

SVR? There is just svr and fixed no ? So I am on svr atm.

celticbhoy27

Mortgage just went out from my account. Recent cut in variable rates by air not reflected. Was supposed to come in the start of month. Anybody in similar situation?

MICKEYG

celticbhoy27 wrote: »

Mortgage just went out from my account. Recent cut in variable rates by air not reflected. Was supposed to come in the start of month. Anybody in similar situation?

I am with AIB and it looks like the accrual period at the new rate starts this month.

Dortilolma

Ok - just throwing in my two cents here.
in 2013 we started on a low 1 year fixed rate because our financial situation was going to be tricky for the first year.
in 2014 we moved to the variable rate because we knew we'd be in a position to repay more off our mortgage and we wanted the flexibility.

While the interests rates had some baring on our decision the main factor was the flexibility of repayments.

Chris_5339762

No move from KBC yet at all?

pm1977x

brianon wrote: »

SVR? There is just svr and fixed no ? So I am on svr atm.

As I understand it you'll go onto their blanket Standard VR which ignores your current Loan To Value % and is usually higher than most other rates so probably not worth the 1 year reduced price.

There are many variable rate bands and rates based on the LTV, just as there are various fixed rates based on your LTV.

James Bond Junior

Chris_5339762 wrote: »

No move from KBC yet at all?

My mortgage advisor in KBC reckoned it will existing customers only and will beannounced this week but no reduction for new ones.

Chris_5339762

Hopefully a monumental cut in the SVR rate. I would advise them to look at the historical trackers that exist with the other banks and price their SVR to be more competitive