Mortgage interest rates, fixed vs variable

120Filmshooter

We have the opportunity to avail of a 3 percent fixed rate for a number of years compared to around 4.5 percent variable rate.

I know no one has a crystal ball but I can't see variable rates dropping to 3% in the next 2-3 years.

Just wondering what others think ?

Geuze

AIB variable rate is 2.75% today.

3% fixed is okay, not the best, but ok.

UB offer 2.3% and 2.6% fixed.

Trish56

AIB Variable rate for loan to value of 90% is 3.15% - less than 80% = 2.95% and less than 50% = 2.75%.

Rates are now not expected to increase until 2020.

Geuze wrote: »

AIB variable rate is 2.75% today.

3% fixed is okay, not the best, but ok.

UB offer 2.3% and 2.6% fixed.

120Filmshooter

We will definitely go with a fixed rate, deciding how long to sign for is the gamble !

I wonder will we ever see the type of rates some European countries have.

Geuze

120Filmshooter wrote: »

I wonder will we ever see the type of rates some European countries have.

Not unless the repossession regime is changed.

browne_rob5

Geuze wrote: »

AIB variable rate is 2.75% today.

3% fixed is okay, not the best, but ok.

UB offer 2.3% and 2.6% fixed.

Are these UB rates introductory offers or are they fixed for a decent amount of time like 5 years?

Geuze

I looked up www.ulsterbank.ie

Then I browsed to this webpage:

https://digital.ulsterbank.ie/personal/mortgages/mortgage-rates.html


I found the following info:

2yr fixed = 2.3%

4yr fixed = 2.6%

browne_rob5

Geuze wrote: »

I looked up www.ulsterbank.ie

Then I browsed to this webpage:

https://digital.ulsterbank.ie/personal/mortgages/mortgage-rates.html


I found the following info:

2yr fixed = 2.3%

4yr fixed = 2.6%

Thanks

120Filmshooter

Geuze wrote: »

Not unless the repossession regime is changed.

True I guess. But the way I look at it...if the banks were not ripping people off in the first place with extortionate rates many people may not have fell into arrears in the first place as the cost of their mortgages would have been more manageable.

browne_rob5 wrote: »

Are these UB rates introductory offers or are they fixed for a decent amount of time like 5 years?

I think many banks are offering fixed rates to new and existing customers. We are trying to decide if we should opt for the 5 year term while we have the chance :rolleyes:

Fol20

120Filmshooter wrote: »

True I guess. But the way I look at it...if the banks were not ripping people off in the first place with extortionate rates many people may not have fell into arrears in the first place as the cost of their mortgages would have been more manageable.



I think many banks are offering fixed rates to new and existing customers. We are trying to decide if we should opt for the 5 year term while we have the chance :rolleyes:

Banks are not ripping people off, its all about risk vs reward. Banks have a higher risk in ireland as its so difficult to repossess an asset where they are not paying back their loan. Theres no point saying if they charged less then people wouldnt fall into arrears when you need to solve the issue of why they charge more first.If they fixed this everything else would fall into place. The ironic thing is that if thet fixed this problem, the majority of people would benefit from this and the only people that Dont are the ones that are not abiding by the contracts they signed up for People cant have it both ways and get a good rate coupled with major protections. Personally if we went the model of more or less every other modern nation, we would be much better off. It kills me inside when i see my friend paying a rate of circa 1pc while we pay much more.

120Filmshooter

Fol20 wrote: »

Banks are not ripping people off, its all about risk vs reward. Banks have a higher risk in ireland as its so difficult to repossess an asset where they are not paying back their loan. Theres no point saying if they charged less then people wouldnt fall into arrears when you need to solve the issue of why they charge more first.If they fixed this everything else would fall into place. The ironic thing is that if thet fixed this problem, the majority of people would benefit from this and the only people that Dont are the ones that are not abiding by the contracts they signed up for People cant have it both ways and get a good rate coupled with major protections. Personally if we went the model of more or less every other modern nation, we would be much better off. It kills me inside when i see my friend paying a rate of circa 1pc while we pay much more.

Fair points.

I am fairly fresh here so this is a genuine question. What came first in Ireland, the way above average mortgage interest rates or the major arrears situation?

You have to be one of very few who think banks don't rip people off

Fol20

120Filmshooter wrote: »

Fair points.

I am fairly fresh here so this is a genuine question. What came first in Ireland, the way above average mortgage interest rates or the major arrears situation?

You have to be one of very few who think banks don't rip people off

Im not happy with the rates they charge in ireland however i understand why they are that high. Think about it this way, if you have some money lying around, would you expect to get the same rate of return with your money if you invested in stocks and shares vs a deposit account. The same can be said for banks

Geuze

Some info on banks mortgage pricing:

https://www.askaboutmoney.com/threads/capital-adequacy-rules-will-stop-any-foreign-bank-cutting-mortgage-rates-in-ireland.209828/



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