Advice Please? - Coming off Fixed Rate

C

cossieh

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Hi
In November I come off a three year fixed rate which has been costing me about 2700 per month - with about 625k left on the mortgage
At the moment, I have been offered a fixed rate for two or three years at 3425. The variable rate available would be about 100 more.
My instinct is to re-fix as I think I can just about stretch to 3425 and would like the certainty. However I'm listening to all the talk of rates about to fall and wonder are better fixed rates likely to become available in next six months or so. Any advice on the best thing to do would be greatly appreciated
cossieh
 
Hold off for a while, it is very likey rates will come down.

Yeah yeah, no one knows for sure etc but it is very likely.

But who knows what will happen to fixed rate options. Banks may not be able to offer good fixed rates options. Best option is to get a good tracker.
 
There are several recent threads on the same issue of people coming to the end of a fixed rate period and wondering what to do. There are also loads of other existing threads on the general fixed versus tracker/variable rate question.
 
As ever, don't forget to shop around. Post the details of the value of your home here and you'll probably get opinions as to what the best rates out there are. Post what rates your own lender is offering also, for comparison.
 
don't be surprised if when you come off fixed that there are no decent ECB tracking mortgage rates available - they are just too expensive for Banks to hedge/fund. It was all fine when ECB was at 2.00% for 2 years - stability, but not anymore, and unlikely to return to those times. You may find that fixed will give you the certainty you want, with a minimal margin. While not suggesting you go with them, NIB's internet site has an LTV calculator where the advanced option allows you to see the underlying Fixed Rate "cost of funds", which is a bit like the bank's cost of borrowing to lend to you for the fixed. NIB call it a reference rate, and it changes weekly on a monday
Just watch this reference rate week to week to see the development in rates. Currently falling as ECB expected to cut rates...
[broken link removed]
 
Rates are fairly low right now. It's your call if you want to wait them out to see if they go lower. However, once the rates hit the sweet spot you're looking for, lock it in for longer than 5, 6, 7 years.

As bad as things are in the market, everyday is a better time to buy. You want to stay with these rates for as long as you can.
 
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