From todays Irish Independent.
[FONT=Arial, Verdana, Arial]Fix your mortgage rate now or miss big savings[/FONT]
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Bill Tyson
Personal Finance Editor
BORROWERS can save more than €1,300 a year by grabbing a final chance to fix their home loans at the low rates still offered by a handful of banks.
Economists described the move as a 'no brainer' and mortgage advisers have been pleading with clients to avail of some fixed offers which will be withdrawn as early as tomorrow.
Most lenders have already sharply increased fixed rates by around 0.5pc after the European Central Bank clearly signalled that the cost of money is going up.
But NIB, AIB, Bank of Ireland, ICS and First Active have yet to move and still offer three-year rates at around the same cost as some variable deals.
"This is a no-brainer. It is a very rare window of opportunity," said Jim Power, economist with the Friends First investment company."
Asked if he would fix his own mortgage, Mr Power replied: "I already have."
New hikes
Mr Power warned the window "will soon close" and this was borne out by one major bank which signalled yesterday that a new round of fixed rate hikes would be announced tomorrow.
Others will soon follow. Mr Power predicted general rate rises of 0.75pc by the end of next year after which further hikes could be on the way depending on the performance of the European economy.
An increase of 0.75pc would shove the average variable rate up to around 4.2pc - or 0.7pc above the lowest fixed rates currently on offer.
That means borrowers who fix now could save €113.40 per month on a €150,000 homeloan or €1,360.80 a year by the end of 2006 - with further savings likely.
Pleading
Michael Dowling, president of the Independent Mortgage Advisers Federation, said he has been "pleading" with clients to avail of the low fixed-rate deals.
"I'm surprised they haven't gone up already . . . But there isn't much time. Today or tomorrow is the time to do it," he said.
He advised borrowers with the five banks in question to e-mail or fax in a request to fix their mortgage and insist on a receipt in writing.
"Some lenders might be sticky (about honouring the rates currently offered) if borrowers haven't signed forms in time," he said. "But if you have it writing, they will have no option."
However, new borrowers and those who want to switch from another lender will almost certainly miss out as they don't have enough time to set up a mortgage before the remaining low fixed rates are likely to go up.
Economist Alan McQuaid of Bloxham Stockbrokers predicts a rate rise of 0.5pc in the next year.
"Fixed rates are good value at 3.5pc, but I wouldn't rush in to take the ones that have already gone up," he said"
This has certainly got me thinking what would fellow AAMer's advise?
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[FONT=Arial, Verdana, Arial]Fix your mortgage rate now or miss big savings[/FONT]
[FONT=Verdana, Arial]
Bill Tyson
Personal Finance Editor
BORROWERS can save more than €1,300 a year by grabbing a final chance to fix their home loans at the low rates still offered by a handful of banks.
Economists described the move as a 'no brainer' and mortgage advisers have been pleading with clients to avail of some fixed offers which will be withdrawn as early as tomorrow.
Most lenders have already sharply increased fixed rates by around 0.5pc after the European Central Bank clearly signalled that the cost of money is going up.
But NIB, AIB, Bank of Ireland, ICS and First Active have yet to move and still offer three-year rates at around the same cost as some variable deals.
"This is a no-brainer. It is a very rare window of opportunity," said Jim Power, economist with the Friends First investment company."
Asked if he would fix his own mortgage, Mr Power replied: "I already have."
New hikes
Mr Power warned the window "will soon close" and this was borne out by one major bank which signalled yesterday that a new round of fixed rate hikes would be announced tomorrow.
Others will soon follow. Mr Power predicted general rate rises of 0.75pc by the end of next year after which further hikes could be on the way depending on the performance of the European economy.
An increase of 0.75pc would shove the average variable rate up to around 4.2pc - or 0.7pc above the lowest fixed rates currently on offer.
That means borrowers who fix now could save €113.40 per month on a €150,000 homeloan or €1,360.80 a year by the end of 2006 - with further savings likely.
Pleading
Michael Dowling, president of the Independent Mortgage Advisers Federation, said he has been "pleading" with clients to avail of the low fixed-rate deals.
"I'm surprised they haven't gone up already . . . But there isn't much time. Today or tomorrow is the time to do it," he said.
He advised borrowers with the five banks in question to e-mail or fax in a request to fix their mortgage and insist on a receipt in writing.
"Some lenders might be sticky (about honouring the rates currently offered) if borrowers haven't signed forms in time," he said. "But if you have it writing, they will have no option."
However, new borrowers and those who want to switch from another lender will almost certainly miss out as they don't have enough time to set up a mortgage before the remaining low fixed rates are likely to go up.
Economist Alan McQuaid of Bloxham Stockbrokers predicts a rate rise of 0.5pc in the next year.
"Fixed rates are good value at 3.5pc, but I wouldn't rush in to take the ones that have already gone up," he said"
This has certainly got me thinking what would fellow AAMer's advise?
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