Anyone else fixing their mortgage atm?

brianiac

Hi, curious to hear other peoples thoughts...

My BOI mortgage came out of its initial fixed payment period so am now on 3.9%variable since last month.
Latest offers arrived last week...3.0% on for all the fixed periods (1,2,3,5) years and 3.3% for 10 year fixed...
Anyone have any thoughts on how their mortgage rates will go?
ECB interbank rate seems to be about as low as they can go and given the need for the bank to make cash for some of the legacy debt which is coming through are they going to drop their rates further?
Im thinking of fixing for 5 years. Brexit might knock the economy back a bit but the ECB cant drop their rates less than zero (to stimulate) so its probably the irish situation keeping the rates up.
I have only a cursory knowledge of economics but would like to pick based on a thought process reather than a random guess!

fiestaman

Hi, do you mind me asking what did you do in the end?

robocode

Would also love to get people's opinions on this. I know at the end of the day it's a bit like looking into a crystal ball as to what why rates could go over 5-10 years. I'm leaning towards fixing for 5 years as we bought last year and I'm risk-averse, so would value the stability fixing brings.

PCeeeee

I am. Now. 10 years fixed, KBC. 2.95.

brianiac

PCeeeee wrote: »

I am. Now. 10 years fixed, KBC. 2.95.

That's Good! Think loan to valu2 can affect rates. Fixed for 5 years at 3. 10 years would have cost 3.3...boi

Wesser

Ulster bank are offering 2.6 fixed for 4 years.

Andrew Beef

I fixed at 2.5% for 5.5 years with Ulster Bank and can’t see myself regretting that decision.

c.p.w.g.w

Fixed mine @ 3.15% for 3 years...variable was 3.7%

iluvfatfrogs

Wesser wrote: »

Ulster bank are offering 2.6 fixed for 4 years.

Any idea why UB have concentrated on the 4 year term so much?
The 3 / 5/ 6/ 7 year fixed term interest rates are significantly higher

fiestaman

brianiac wrote: »

That's Good! Think loan to valu2 can affect rates. Fixed for 5 years at 3. 10 years would have cost 3.3...boi

Im thinking of going 10years with BOI. €20 per month difference between 5yrs @ 3% and 10yrs @ 3.3% for me.

monday monday

just sent off the mortgage form this morning to fix for 10 years @3.3% with BOI. We agonised over whether to fix for 5 years @3.0% but opted for the 10 years. My husband gave up work at Christmas to stay at home with kids and while he will go back to work within the 10 years we just wanted to know what our payments will be. hopefully wont regret it.

fiestaman

monday monday wrote: »

just sent off the mortgage form this morning to fix for 10 years @3.3% with BOI. We agonised over whether to fix for 5 years @3.0% but opted for the 10 years. My husband gave up work at Christmas to stay at home with kids and while he will go back to work within the 10 years we just wanted to know what our payments will be. hopefully wont regret it.

I know how you feel about trying to make the decision, it's not easy.

PCeeeee

monday monday wrote: »

just sent off the mortgage form this morning to fix for 10 years @3.3% with BOI. We agonised over whether to fix for 5 years @3.0% but opted for the 10 years. My husband gave up work at Christmas to stay at home with kids and while he will go back to work within the 10 years we just wanted to know what our payments will be. hopefully wont regret it.

There is a lot to be said for certainty.

Andrew Beef

There are two main issues; the trend of ECB rates / EURIBOR rates (which is probably upwards), and the excessive margins charged by Irish banks. By fixing, we’re taking a view that nothing material will happen in relation to the latter (e.g. a transformational new entrant, a non-toothless Fianna Fail Bill, etc). I’m reasonably comfortable that I’m fixed at 2.5% for 5.5 years, but you never know; people in Europe are paying far less, albeit in jurisdiction where non-payers are tackled.

PCeeeee

Andrew Beef wrote: »

There are two main issues; the trend of ECB rates / EURIBOR rates (which is probably upwards), and the excessive margins charged by Irish banks. By fixing, we’re taking a view that nothing material will happen in relation to the latter (e.g. a transformational new entrant, a non-toothless Fianna Fail Bill, etc). I’m reasonably comfortable that I’m fixed at 2.5% for 5.5 years, but you never know; people in Europe are paying far less, albeit in jurisdiction where non-payers are tackled.

Agree. You would have to imagine ECB rates will start to go up at some point. Any change in the margins charged by the banks will be slow. I do see them gradually (glacially) moving towards Euro style rates but the benefit to the lendees will be erroded by rising ECB rates.

That's my view and that's why I fixed.

theboringfox

Fixed with UB for 4 years at 2.6%. I'd like to hedge longer but might be topping up mortgage within next year so might put that element out longer.

iluvfatfrogs

theboringfox wrote: »

Fixed with UB for 4 years at 2.6%. I'd like to hedge longer but might be topping up mortgage within next year so might put that element out longer.

Were you already with UB or did you switch?
You get the full legal fees contribution without any hassle?

theboringfox

iluvfatfrogs wrote: »

Were you already with UB or did you switch?
You get the full legal fees contribution without any hassle?

Already with UB and was in two minds between a 3.39% 7 year fix and 4 year at 2.6%.

Was very tempted by BoI 10 year fix at 3 3%. However I was running into some issues as they wanted insurance covering subsidence and can't get it even though house underpinned and certified.

iluvfatfrogs

theboringfox wrote: »

Already with UB and was in two minds between a 3.39% 7 year fix and 4 year at 2.6%.

Was very tempted by BoI 10 year fix at 3 3%. However I was running into some issues as they wanted insurance covering subsidence and can't get it even though house underpinned and certified.

Thanks,
In my opinion, that's a good deal for 4 years, specifically with your current provider.

theboringfox

iluvfatfrogs wrote: »

Thanks,
In my opinion, that's a good deal for 4 years, specifically with your current provider.

I don't think I'll call it right but I think fixing is peace of mind for a period. That's why I think BoI 10 year is great. Whilst I think rates will go up there is also the potential competition drives rates down.