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Mortgage rates

  • 19-10-2015 3:38pm
    #1
    peaceboi
    Registered Users Posts: 587 ✭✭✭


    Our 5 years fixed mortgage rate of 4.1% with EBS is ending this month. We have the following options to choose from.
    standard variable rate of 3.7%
    2 years fixed =3.6%
    3 years=3.65℅,
    5 years 3.8℅
    Your thoughts please:-)


Comments

  • #2
    Chris_5339762
    Registered Users, Registered Users 2 Posts: 5,928 ✭✭✭Chris_5339762


    SVR of 3.7% and overpay the "saved" 0.4%. Don't pocket it.

    Or switch to another bank! Or see if EBS will put you onto a cheaper LTV rate if they offer them and allow you to.


  • #3
    danmanw8
    Registered Users Posts: 229 ✭✭danmanw8


    Chris_5339762 wrote: »
    SVR of 3.7% and overpay the "saved" 0.4%. Don't pocket it.

    Or switch to another bank! Or see if EBS will put you onto a cheaper LTV rate if they offer them and allow you to.

    By that logic, why not recommend the 2 Year fixed and over pay the "saved" 0.5%?

    Although historically fixed rates have always been higher than variables so when it's lower you have to question that bank's expectations of the SVR. ie they will probably fall.
    I'd be inclined to stick with the SVR and take peaceboi's advice on overpaying


  • #4
    peaceboi
    Registered Users Posts: 587 ✭✭✭peaceboi


    Chris_5339762 wrote: »
    SVR of 3.7% and overpay the "saved" 0.4%. Don't pocket it.

    Or switch to another bank! Or see if EBS will put you onto a cheaper LTV rate if they offer them and allow you to.

    Thing is we got 2 more years of the mortgage relief, so switching would make it void.


  • #5
    tommyboy2222
    Closed Accounts Posts: 914 ✭✭✭tommyboy2222


    peaceboi wrote: »
    Our 5 years fixed mortgage rate of 4.1% with EBS is ending this month. We have the following options to choose from.
    standard variable rate of 3.7%
    2 years fixed =3.6%
    3 years=3.65℅,
    5 years 3.8℅
    Your thoughts please:-)

    My 5 year fixed rate with PTSB is ending this month and my options are :

    4.5% SVR
    7.5% 2 yr fixed
    8.75% 5 yr fixed

    so you are in a better place than me !!


  • #6
    Seve1980
    Registered Users Posts: 5 ✭Seve1980


    peaceboi wrote: »
    Thing is we got 2 more years of the mortgage relief, so switching would make it void.

    Your mortgage relief (trs) moves with your switch so you can still claim it.


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  • #7
    newacc2015
    Closed Accounts Posts: 2,379 ✭✭✭newacc2015


    You only fix when you think they may increase rates. With the absolute state the european economy is in. The chance of an interest rate hike within 2 years is non-existant. Within 5 years probably not either. I dont think the 0.1% saving is enough to fix for 2 years.


  • #8
    Chris_5339762
    Registered Users, Registered Users 2 Posts: 5,928 ✭✭✭Chris_5339762


    danmanw8 wrote: »
    By that logic, why not recommend the 2 Year fixed and over pay the "saved" 0.5%?

    Because in general, you can't overpay on the fixed. Gotta do some maths, the overpaying+SVR will reduce the monthly payment over two years and may result in you paying less than you would if you fixed at the lower rate.


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