Breaking 10 year fixed rate mortgage

I fixed my mortgage with PTSB at 6.1% for 10 yrs early last year as I was afraid that PTSB would not stop increasing their variable rate. However given recent developments PTSB appear to be getting their act together and providing slightly better interest rates. I am also in negative equity to the tune of about €120k.

I looking for a bit of advice in relation to the following;

Should I try to break out of my fixed rate and avail of the lower variable rate.

Is 6.1% a good rate for 10yr fixed and do people think interest rates will reach this level over the next couple of years.

Apart from the last year, has variable interest rates reached 6% previously.

Whilst I am acurrently working, job security is not guaranteed.

All comments greatly appreciated.

I'd think it's a poor rate to be honest. I can only see the PTSB rate going down! I think it only ever went over the 6.1% once in the last 5 years but I could be wrong... They will charge you to break it and I feel they'll feel they are on a winner with that rate so it wouldn't be cheap. You should contact them directly and ask the question...

Really the first thing you need to find out is how much it would cost you to break out - everything would depend on this figure. If you ring them they should be able to tell you.

I have been quoted 30k to break the fixed rate, but was intending to argue that I fixed due their actions of raising the variable rate and also the fixed rates, actions that the bank now acknowledge as mistakes according to the letter received by the new CEO to avoid or reduce paying this fee. Might be worth a shot, but I don't want to go down that route if it's advisable to stay on the fixed rate.

walshd said:

I can only see the PTSB rate going down! I think it only ever went over the 6.1% once in the last 5 years but I could be wrong...

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While it may be hard to see variable rates rising in the near future, the long term ECB rate should probably be around 4%, so the mortgage rate could well rise to higher than 6% within the next 9 years.

Hi Brendan, in your opinion do you feel he'll gain or lose over the full period on that rate?

That might depend if the OP would fix again if the rates were to increase.