My Fixed mortgage Rate 5.65% Is Coming To A End

alwaystherain

At the moment im on a fixed rate 5.65% this is with EBS.
From March i should be on a new rate.

Does the bank contact me or should i contact them?

Also looking at there rates at the moment a variable is very low to what my % is. Should i fix again or go to the variable rate.

I think im gonna be paying a fair bit less no matter what but not sure longterm if fixing is a good idea as seems that there talk of variable rates coming down some more.

Any advice here is welcome.

jameshayes

You are being robbed by EBS. SVR is only as low as 3.35% with AIB. You should really move from EBS and never look back.

With EBS you are paying 623 euro per 100k borrowed, with a variable rate with any other bank you'll be paying approx 500 per 100k, thats a saving of 123 euro per 100k - immense.

Trish56

alwaystherain wrote: »

At the moment im on a fixed rate 5.65% this is with EBS.
From March i should be on a new rate.

Does the bank contact me or should i contact them?

Also looking at there rates at the moment a variable is very low to what my % is. Should i fix again or go to the variable rate.

I think im gonna be paying a fair bit less no matter what but not sure longterm if fixing is a good idea as seems that there talk of variable rates coming down some more.

Any advice here is welcome.

EBS should contact you about 6 weeks before your fixed rate expires offering you either a variable rate currently 3.70% or a choice of fixed rates ranging from 1 year fixed 3.50% to 5 year fixed at 3.80%. Their rates are very competitive so no need to move and you will have a big reduction in your monthly repayments from 5.65% to 3.70%. I would be inclined to stay on the variable rate for the next 12/18 months and perhaps fix after that if the fixed rates are still competitive.

newacc2015

Dont fix. The markets arent expecting an increase rate hike from the ECB for at least 2 years. You can see it from the yield curve, which is decent indicator of the markets outlook on rate hikes.

http://markets.ft.com/RESEARCH/Markets/Bonds

Even if it is before that. You will hear speculation in the market, when it will happen. The Fed had a hike in November which surprised no one as it was hinted in the media for months.

newacc2015

Dont fix. The markets arent expecting an increase rate hike from the ECB for at least 2 years. You can see it from the yield curve, which is decent indicator of the markets outlook on rate hikes.

http://markets.ft.com/RESEARCH/Markets/Bonds

Even if it is before that. You will hear speculation in the market, when it will happen. The Fed had a hike in November which surprised no one as it was hinted in the media for months.

ct5amr2ig1nfhp

The OP is not being 'robbed'. He fixed his rate, probably sometime in 2007/2008 when rates were between 5 to 6%. He took a gamble that rates were most likely going to go up. It also gives comfort that your monthly payment will not fluctuate.

Rates have dropped and you'll be able to get a much better rate now from any of the banks etc. SVR is as low as 3.3% with EBS.

If you like the comfort of knowing your repayments will be fixed for a length of time, you can always look at 1 or 2 year rates. Again with EBS 3.5% and 3.6%

I would stay on a variable rate for 12-24 months.

jameshayes wrote: »

You are being robbed by EBS. SVR is only as low as 3.35% with AIB. You should really move from EBS and never look back.

With EBS you are paying 623 euro per 100k borrowed, with a variable rate with any other bank you'll be paying approx 500 per 100k, thats a saving of 123 euro per 100k - immense.

Soarer

They'll inform you, in writing, of what your options are once your fixed rate comes to an end. If you don't choose an option, you should be automatically be reverted to their standard variable rate.

If you can afford the current repayments, and while rates are low, I'd suggest maintaining your current repayments on the new lower rate. This will overpay your principal and knock years, and thousands in interest, off your mortgage.
You could use something like this calculator to see what potential savings there are.

newacc2015 wrote: »

Dont fix. The markets arent expecting an increase rate hike from the ECB for at least 2 years. You can see it from the yield curve, which is decent indicator of the markets outlook on rate hikes.

http://markets.ft.com/RESEARCH/Markets/Bonds

Even if it is before that. You will hear speculation in the market, when it will happen. The Fed had a hike in November which surprised no one as it was hinted in the media for months.

Doesn't make a blind bit of difference to our institutions. The ECB has been dropping rates for years, while our shower were putting up their rates!

If fixing for 1 year can save you .2% on the variable rate, I reckon you'd be mad not to take it. The overpaying option isn't really a flyer then though. Unless you saved the difference separately.....

newacc2015

Soarer wrote: »

Doesn't make a blind bit of difference to our institutions. The ECB has been dropping rates for years, while our shower were putting up their rates!

If fixing for 1 year can save you .2% on the variable rate, I reckon you'd be mad not to take it. The overpaying option isn't really a flyer then though. Unless you saved the difference separately.....

BOI just cut their rates this week. 0.25% over 3 years is not a blind bit of difference

bb12

i'm with ebs and came off my 5 year fixed rate last summer. my mortgage contract stated i would revert to variable rate at the end of the fixed term which it did. ebs didn't contact me about any options at the time, i had to call them. i wanted to fix again so i arranged that as soon as my first fixed term came to an end. don't wait for them to get in touch with you though,

Xofpod

Just dipping my toe back in the mortgage market after ten years. Any general guidelines on who's offering good rates at the moment (EBS seem to be about the best?), and thoughts on fixed v variable for the next 2-3 years?