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New mortgage rate

  • 27-07-2015 9:01am
    #1
    cjmcork
    Registered Users, Registered Users 2 Posts: 2,354 ✭✭✭


    just looking for a half-educated guess on this..............

    my old fixed rate is about to expire with Ulster Bank and I've been offered

    2 year fixed at 3.85%;
    4 year fixed at 3.9%
    6 year fixed at 3.99%

    the 6 year is really too much of a commitment for me, but just wanted to see how folks reckon the market will look in two years - if I fix now for 2 years, do you think the rates will have fallen again (or am I better to fix for 4)? I'm very risk averse, so prefer to fix my rate

    Flexible Variable and SVR are both 4.3%


Comments

  • #2
    jameshayes
    Registered Users, Registered Users 2 Posts: 3,772 ✭✭✭jameshayes


    There are people at the moment who believe the SVR rate will be reduced to be more in line with europe. Personally, I would take a gamble on a years fixed but I dont think I'd go for 2 years with this in mind.

    A move to another lender might also save you a fair amount of money, KBC in particular. you should have a read here: http://www.askaboutmoney.com/forums/the-fair-mortgage-rates-campaign.139/


  • #3
    cjmcork
    Registered Users, Registered Users 2 Posts: 2,354 ✭✭✭cjmcork


    Thanks for that - there's a min of 2 year fixed, no one year option :-(

    do other lenders consider taking you on if you're still in negative equity - I reckon in 2 years, the gaff will be back at the mortgage value (rural Cork here as opposed to city centre Dublin, so the recovery is on slow speed here)


  • #4
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    Anyone thinking of choosing a 1 year fixed should get it in writing that they will not revert to a standard variable but will get a loan to value variable rate. You wont be able to remortgage to another lender if you are in negative equity.


  • #5
    jameshayes
    Registered Users, Registered Users 2 Posts: 3,772 ✭✭✭jameshayes


    cjmcork wrote: »
    Thanks for that - there's a min of 2 year fixed, no one year option :-(

    do other lenders consider taking you on if you're still in negative equity - I reckon in 2 years, the gaff will be back at the mortgage value (rural Cork here as opposed to city centre Dublin, so the recovery is on slow speed here)

    I wouldn't like to advise you either way because it could go any direction. I'm a gambler by nature so always go for variable but I don't have dependants and can cope if the rate went up..


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