# Variable to fixed



## cubaboy (22 Mar 2006)

This question has probably been asked a hundred times so apologies in advance.  I would like your thoughts on my situation.  My partner and I started paying back out thrity year tracker mortgage last September.  We are currently paying 3.6% (after the most recent interest rate hike).  Our mortgage goes up about 30 quid every time they up the rates.  We both work and can afford the extra we have to pay.  My questions are as follows:
1. Is it time to switch to a fixed rate mortgage???  
2. Is it possible for me to do so in the first year (am I locked in to the   variable for the first year??) 
3. What is the procedure for changing mortages in this situation??
4. What is the most favourable fixed rate I should be looking at???
5. How long should I fix my rate for??
6. CAn I switch back to tracker after the agreed time period if the financial environment changes??

What I want to avoid if at all possible is *having* to change this time next year, after three or four more interest rate increases, and regret not doing so now.

Thanks in advance for any advice you can offer me.


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## Cat (29 Mar 2006)

I rang my mortgage company as in the same situation, tracker mortgage last June and two hikes already so increased by around €60 and they helped me work out that even if there is two more hikes in interest rates, I would still be not be paying as much as the one year fixed rate which would cost me €1,063, mortgage at mo is around €960
so my answers would be the following:
1. it's really up to you but I would advise ring your mortgage company and let them work out how much that would be.
2. You can change at any time with variable rate
3. Just ring mortgage company and advise over phone and they can change for you
4. Mortgage company will give you offers of 1 year, 3 or 5 or more etc.
5 & 6. What suits you and how much you can offord each month, would always start with one year fixed and at least then in a year you can see what interest rate situation is and change back to Variable.
Hope this helps!


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## irishpancake (29 Mar 2006)

You should really look at the Bank of Scotland switcher, which gives a discounted rate for 2 years (ECB + 0.45%) then reverts to ECB +1.0%. 

This would give a two-year cushion.

They pay €1000 towards the Legal Fees of switching, which should more than cover it.

Info [broken link removed] regarding LTV, etc.


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## Petal (29 Mar 2006)

I've thought about this as well. I am hopefully buying a house soon (one purchase has just fallen through!) but either way, I'm probably going for a 2year fixed rate of 3.84, which I worked out I end up better with than going on a tracker with all the likely increases. for 2 year fixed PTSB and ICS offer the best rates.


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## irishpancake (29 Mar 2006)

Petal said:
			
		

> I've thought about this as well. I am hopefully buying a house soon (one purchase has just fallen through!) but either way, I'm probably going for a 2year fixed rate of 3.84, which I worked out I end up better with than going on a tracker with all the likely increases. for 2 year fixed PTSB and ICS offer the best rates.



Just remember that you will be paying the 3.84% for the full 2 years, and tracker rate rises (or reductions  ) only kick in after the ECB meetings. 

Also, there is a better 2 year fixed-rate available from NIB, see [broken link removed].


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## Petal (29 Mar 2006)

Most interesting... Thanks for that Irishpancake! Although I just had a look at some info I received from them, and the 2 year fixed is stated with an APR of 3.7. Still better than the others, but the info I've got is also before the latest ECB increase so not sure how up to date the info given on that webpage is. I'll find out soon enough anyway...


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