# 5.8% bailout consequence for Mortgages



## Josvill2010 (28 Nov 2010)

Hi,

What's the consequence of 5.8% interest to the Goverment. Will this drive the interest rate on current mortgages up?

Thanks,
j


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## TLC (28 Nov 2010)

No doubt it will - the banks will want to recover their costs & we are the suckers!


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## AlbacoreA (28 Nov 2010)

I can't see how they won't go up. Going to be mayhem if/when they do.


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## aristotle (28 Nov 2010)

Tracker mortgage and fixed rate mortgage holders won't be affected (at least for fixed rate they wont be affected until they move off the fixed rate and even then some of them will move to trackers).

Mortgages is one thing, there is still a huge amount of personal debt and commercial debt that will be serioiusly affected when\if rates go up.

How long until we see variable rate mortgages of 10%?


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## AlbacoreA (28 Nov 2010)

Will we see a lot of people on a variable rate moving to  fixed rate mortgages?


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## mmclo (29 Nov 2010)

I suppose in theory non Irish banks could offer competition or the potential of this might restrict increases? Of course this will simply prevent any recovery  of the Irish banks


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## NorfBank (29 Nov 2010)

AlbacoreA said:


> Will we see a lot of people on a variable rate moving to  fixed rate mortgages?



They already are.


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