# Should we fix mortgage interest rate now?



## idontknow (28 Jan 2010)

Following the news item today about PTSB rumoured to be thinking of making a move upwards on their interest rate should we be fixing now? Surely with reductions during 09 they can only go up in 2010?

I'm with KBC and their rates per their website are:
1 year fixed 2.40% APR 3.19%
2 year fixed 3.29% APR 3.30%
3 year fixed 3.69% APR 3.43%
Saverplus variable 2.45% APR 2.48%

Forgive my ignorance but why are APR's so different across the options above?

Of course the above are their new business rates.  Are banks open to haggling?  We may be slightly in negative equity.  

The 3 year fixed looks like a good option, but I think it's too long to fix as you don't know what's down the road (if you have to remortgage due to a house move during the fixed term are you penalised?)  

KBC also do Mix n’ Match Terms - is this recommended?

Thanks!


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## LDFerguson (29 Jan 2010)

Important question is whether or not you're on a tracker variable or a standard variable with KBC at present.  If on a tracker, what's your margin over ECB?


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## idontknow (29 Jan 2010)

Just rang KBC it's actually a tracker (fantastic!) it's 1.25% over the ECB rate.
Forgot to ask them if we fix at any stage would it revert to tracker after the fixed period.... does anyone know?


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## trailblazer (29 Jan 2010)

What about if one were on ECB+1.1%? i.e. 2.1% apr......I assume it is not time to fix for a long time.....


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## NorfBank (29 Jan 2010)

idontknow said:


> Just rang KBC it's actually a tracker (fantastic!) it's 1.25% over the ECB rate.
> Forgot to ask them if we fix at any stage would it revert to tracker after the fixed period.... does anyone know?



It won't, they will take that tracker off you at the fist opportunity.

www.moneybackmortgages.ie


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## idontknow (30 Jan 2010)

I'm curious as to why KBC didn't offer us the SVR given the current climate? Maybe it was in our contract to revert to tracker after 3 yr fixed term at the beginning.  Are saying they can apply new terms if we decide to fix now? i.e. reverts to SVR?


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## LDFerguson (30 Jan 2010)

trailblazer said:


> What about if one were on ECB+1.1%? i.e. 2.1% apr......I assume it is not time to fix for a long time.....


 
I would hold on to that rate with both hands and a leg.


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## LDFerguson (30 Jan 2010)

idontknow said:


> I'm curious as to why KBC didn't offer us the SVR given the current climate? Maybe it was in our contract to revert to tracker after 3 yr fixed term at the beginning. Are saying they can apply new terms if we decide to fix now? i.e. reverts to SVR?


 
I'd imagine your original loan offer compels them to offer you the tracker after your fixed rate expires.


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