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Mortgage Rates

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  • 18-12-2002 3:36pm
    #1
    Borzoi
    Registered Users Posts: 2,876 ✭✭✭


    The bank have just written to me to say that my first year discount mortgage rate is coming to an end and what would be my preference for continueing:

    The like ly options are:
    Homeloan rate 4.24%
    One year fixed 4.75% roughly €65 more per month
    Two year fixed 4.69% roughly €55 more per month

    Now as it stand I'm thinking of optng for the 2 year deal, as the certainty is probably worth the extra cash. Especially as the Varicable rate only has to go up 0.5% to match anyway.

    Any thoughts comments on where interest rates are goin??


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    #2
    dmeehan
    Registered Users Posts: 2,455 ✭✭✭dmeehan


    im in the same boat, only my discount rate finnished in nov
    so we decided to wait as we expected rates to come down, and they did.

    i think wait-and-see is the best approach to take at the moment, if rates look like rising again, then choose another fixed rate option.

    right now analysts (some, anyway) are expecting rates to come down again to try and lift the german economy


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    #3
    Victor
    Registered Users Posts: 78,370 ✭✭✭✭Victor


    Originally posted by dmeehan
    right now analysts (some, anyway) are expecting rates to come down again to try and lift the german economy
    Fair point, but I can't see a huge drop in the future (I don't think Germany is as FUBARed as Japan was a few years ago). Then again, I ask the question why is the 2 year rate lower than the 1 year rate? Are they trying to tie people in at a relatively high rate for a longer period of time?

    Of course, can you shop around? Or just threaten to.


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    #4
    Borzoi
    Registered Users Posts: 2,876 ✭✭✭Borzoi


    thanks for the help guys

    to be honest it's currently too much trouble to shop around. So what you see is what I'll take.

    my own personal opiinion is that things are more likely to go up than down over the next year or so, certainly over 2 years. And what with the 2 year rate being cheaper I think thats what I'm going to go for.


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    #5
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    Hi Borzoi - In general, you'll pay a premium for the security of any fixed rate deal. If this security is important to you (i.e. your lifestyle would be seriously impacted by any increase in your repayments), then it makes sense to take the best fixed deal you can. If you have the flexibility to absorb a reasonable increase in your repayment without a serious impact to your lifestyle, then I'd recommend that you stick with the best variable rate you can find.

    4.25% sounds like it's at the high end of the market for variable rates at the moment. Is this the APR% or the nominal rate? You'll find latest variable rates (after the recent drops) in this thread from Askaboutmoney.com. Don't be afraid to try to haggle - tell them you're thinking about moving to AIB to get their lowest rate & see what they say.


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