Is it time to fix mortgage?

you would be mad to go fixed on a tracker mortgage

This advice is rapidly going out of date to be honest.

If he has a decent bit of equity in the house, then the OP could get a fixed rate in the region of 2.5% fixed for five years.

Assuming he has a tracker of (ECB rate + 1%), then he's currently paying an interest rate of 2.25%. That is absolutely going to go up to 3% before the end of the year, and even more in 2023. The tracker will be significantly more expensive pretty soon.

The only reason to stick on a tracker now is if you think interest rates will fall again quite quickly. I would be skeptical of that.

Why would you have to pay a solicitor to fix your mortgage?

You are right about the other stuff though. You'd need a crystal ball to know what is going to happen in the long term. A change might mean a win in the next 5 years but a loss in the following 10 years. I went with security and fixed for 10 years.

If it was me I'd fix it for the next 7-10 years at the lowest rate you can find.

the next few years are going to be rocky, but in 7-10 maybe it will have relaxed back to where it was a year or 2 ago. If it hasn't, then you're coming to the end of your mortgage term and your interest won't be that much anyways.

I fixed my mortgage for 5 years at 2.55%, but I'm right at the start of the term and this was the longest option open to me.

Tis hard to know what to do without a crystal ball. I've changed now anyway so I'll stick with it and see how it goes. I've about 15 years left on the mortgage with a balance of about €160k.

A split mortgage here with 50 percent of the total value of it now on a tracker (allbeit) a relatively high margin on it due to porting it a number of years ago.

We've had it since 06 and the rate was up around 5-6 percent at one point around 2009 or to 2012 - cant remember. Back then the future looked relativelt bleak to many if you had that outlook.

If it heads that direction again sobeit but I can't see it going there for too long (relative to the term). It's guess work. A lot less term left on the tracker versus the other portion of the mortgage.

The majority of the experts will no doubt get it wrong again.

Could you save over the next 5 years for a "just in case" lump sum to pay down the bulk of the remaining 6 years?

Looks like Ulster Bank rates. Only available for current customers moving from trackers.

WARNING

If you have a tracker and you switch to fixed, then with exception of KBC (high fixed rates for trackers), you LOSE your tracker. That puts you at the mercy of variable or regular fixed rates for the remaining term of your mortgage.

So if you are fixing, do not open yourself to a long period at the mercy of standard rates.

EG, if 7years left and you take a 5 year fixed, that won't be bad as balance will be very low and rate change won't make a big difference on a small balance, but if 12-15 years left be ULTRA cautious.

If you do not have a tracker, fix at whatever you can get under 3%

Of course, but that is their stated target and the market is going by that. And its as much as we can go by too.

Same hysteria is in the UK with tabloids saying 6%-7%. The UK will not go to those levels as it would trigger a phenomenal property crash and very deep recession.

Most of the inflation is in the energy market and the US dollar strength is also playing its part as so much is traded in dollars. Energy prices have been relatively stable and on a downward trend and that will see those inflationary contributors fall away or even reduce inflation (domestic electricity and gas are forward contracted so these will take longer to fall back)

If anything, government one off supports like the electricity credits and one off extra payments on low income families and fuel supports (most EU government doing a form of this) is what will ensure inflation will be contained as there's less pressure on wage inflation.

And the massive German - Middle East multi year deal on liquid gas will most likely mean gas prices will drop substantially in the spring. That will lead to coal and oil dropping. In turn lead to better prospects for the EU and euro strengthening.

Of course its an 'if', but its becoming the favoured opinion of some of the major investment experts and that's why 10 year - 30 year bonds are far lower than 5 year bonds. And why banks can still give 10 year fixed rates at 3%

6 years left on mortgage. Current payment has just gone to €961 at 2%. Can anyone tell me if I fix at 2.35 for 5 years what repayment will be? Thanks.