Fixed versus Variable Mortgages

macvin

https://www.boards.ie/discussion/comment/119397364#Comment_119397364

Really depends on the capital balance and term remaining.

She has paid off at least 15 years, so don't be looking at what the media say as a "typical" tracker mortgage does not have 25 years remaining. (a few will, but average is less than 15 years remaining)

cubatahavana

I just got the loan offer from avant. 24 years at 2.65. I’m very happy with it

MvsC3

A lot of people on here seem to understand this better than me, I'm on a tracker and expected today would be the first payment with the 0.5% raise, but it must be next month. Anyone want to take a guess how much it'll go up based on my figures.

Current Monthly €767 Balance €146,733 and another 19 and half years left maturing in Feb 2041, Rate at ECB plus 1.25% with Tsb

Thanks in advance, any answers/advice appreciated

Danzy

https://www.boards.ie/discussion/comment/119403310#Comment_119403310

Given the scale of time and money, you need to fix now.

What happens when the next rise in September is another.5% and again and again and probably again and again.

Put your information in to bonkers.ie

Tracker isn't working for you at the rate you are, the changes coming and the time Frame left

Look at the person above you. 24 years at 2.65.

You'll be paying a bit more than now but the aim is not to be paying 200 or more extra in 18 months.

Whatever happens you will not be better off if you don't start to fix now

MvsC3

Thanks, I'll definitely look into fixing it

macvin

https://www.boards.ie/discussion/comment/119403310#Comment_119403310

Don't get too concerned about multiple rate rises. 1.25% tracker is OK. The cost, hassle and time to switch would mean you would likely to be on a higher rate. Cost will be about €1800 and it is currently taking about 4 months. At 1.25% tracker, you were always borderline whether to fix for remaining term with someone like Avant or stay on tracker. Avant also only do mortgages for main towns and cities

DO NOT FIX WITH PTSB - you will lose your tracker AND after the fixed rate you revert to their extortionate standard variable rate.

You have 18.5 year left and you do not have a huge balance.

0.5% increase is about €35 a month extra. I reckon ECB rate will move to 2% by middle of next year and then stabilise. (inflation already showing some forward signs of easing)

If ECB went to 2%, you would have a repayment of about €905

Cape Clear

https://www.boards.ie/discussion/comment/119399314#Comment_119399314

Are all rates calculated daily? I was under the impression that some older mortgages were calculated monthly?

macvin

https://www.boards.ie/discussion/comment/119420918#Comment_119420918

similar. They work out the number of days in the month, so actual interest portion of the payment will vary and March would be slightly higher than February, and April lower than March due to the number of days.

Banks tend to take payment at the beginning of the month and that gives the bank a slight advantage.

You can switch to any date in the month up to 28th (this ensures February is paid) and it makes no difference. I pay on the 28th. (warning, if a payment does no go through by the last day of the month, you are immediately in arrears, so only chose 28th if you are 100% sure of payment)

Cape Clear

https://www.boards.ie/discussion/comment/119422978#Comment_119422978

Is there a benefit to paying at the end of the month instead of the beginning?

Ush1

20 years left with 107k balance, have option to fix for five years at 2.35% or ten years at 2.8%. Thoughts?

jj880

https://www.boards.ie/discussion/comment/119396547#Comment_119396547

Got my BOI letter today. Increase of 8.70 per month from 624.30 to 633. I'm relieved with that. So each 0.5% increase should be slightly less than 8.70 in future?

Fiona

If you come off a fixed rate with PTSB do they not give you an option to lock in again for another fixed term?

I am in this predicament accept my tracker mortgage was 2.25% and now it's gone up to 2.75% so for me I think fixing it is a no-brainer...... I think I'm so confused!

wotzgoingon

https://www.boards.ie/discussion/comment/119430056#Comment_119430056

You are on a dear tracker. My brother's was 1.05% and since the increase it is now 1.55%. So not too bad but still a pain with the increase. I think it went up around €26.

Fiona

Yeah as part of tracker portability mortgage we got an extra 1% put on the rate so now it may as well be a standard variable.

Just sick about going on fixed and coming off it with 14 years left on it as you will be shafted!

Ours went up €31.82

jj880

Looks like more increases coming before the end of the year. The idea I can't seem to shake is if these rate increases we're gona go bananas (ECB rate 5+ %) then surely banks fixed rate offerings would be at a far higher rate? Maybe I'm way off but I can't see banks missing out if rates are going to go that high so this implies they think rates won't go that high? Or not high for very long?

walterking

https://www.boards.ie/discussion/comment/119599815#Comment_119599815

It will not go to 5%. That's just scaremongering.

It will probably go to 3% and then fall late 2023 into 2024 and gradually settle at 1.5-2%

ECB needs to give the market a short sharp jolt. In reality they should have started back in January. I expect another 0.5%-0.75% before Christmas and then again in March. That may be enough or then might go again before pausing

jj880

https://www.boards.ie/discussion/comment/119603760#Comment_119603760

Don't mean to scaremonger. Trying to get a realistic idea of what could happen (leaning towards worst case scenario) and plan accordingly. I hope your prediction is right.

Cape Clear

https://www.boards.ie/discussion/comment/119599815#Comment_119599815

Back in June I'd have said 4% but now I wouldn't rule out 6% especially given the latest increment of 0.75%.The ECB seem to be intent on fighting this aggressively and we could see 1.5% increases between now and December. The game plan isn't a quarter of a percent every couple of months.

jj880

https://www.boards.ie/discussion/comment/119603892#Comment_119603892

If banks change their fixed rate offers to say 4% or more before the end of the year or early next year things could start to get well hairy. A clear sign of whats coming. Hopefully not but will be holding back some cash just in case. 1 night in the pub for Christmas/new year instead of half a dozen.

walterking

https://www.boards.ie/discussion/comment/119603892#Comment_119603892

Even at the height of the bull run in 2007, the ECB stopped at 4.25% to tame a roaring market (just before collapse)

They know Europe and elsewhere is on the verge of a recession and they just need to do enough now to have a shallow recession and then back to normal inflation and normalised growth.

Bond markets are the best barometer and currently 5 year bond are under 2% and 10 year bonds 2.38%. These are averages - the premium German bonds are about 0.5% lower.

Things can go awry, but the money markets are currently looking at 2.5%-3.25% max rate and then falling back to about 2%.

The main problem is you have "journalists" giving nothing but doomsday rubbish based on no real information.