Fixed rate over, What Now

I

idonno-1

Registered User
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I am pretty clueless when it comes to mortgages and interest rates. So I need some advice. Here's my story

Myself and husband got 100% mortgage for €205000 2 years ago at fixed rate. Repayments have been €870 (after mortgage relief). My 2 years fixed is now up, bank is now offering a variable tracker mortgage, standard variable or option to fix at 5.5% for 1 to 10 yrs. Repayments increase to around €1140 (before mortgage relief approx €140). What would you do?? Do I fix it again, if so for how many years? (Regret not fixing it for longer at the start) or variable or tracker variable(not sure what this is)?
 
The bad news - as you know - your rate will be higher.
The good news is becasue you are paying more interest you will get more tax relief. - Region 170.00 per month based on balance of mortgage being approx. 195k.

Rates may go up once or twice over the next few moths and then start coming down again.

I'd go with fixed for one year @5.5% or tracker if its less that 1.25% above ECB.
 
mcaul said:
Rates may go up once or twice over the next few moths and then start coming down again..
Click to expand...

ECB rates look like going up in July alright - but after that who knows what could happen?

If you want to fix - First Active have 4.95% for 5 years - but that rate could be gone soon. If your house is worth a bit more over 250k you might just qualify for the NIB LTV mortgage and get ecb plus 0.8% tracker. Switching will incur costs of at least 600 euro and the rates on offer today could be gone in a few weeks.
 
Hi,
Im in the same boat!! Ive just finished my two year fixed at 4.25%, now im on the tracker varialbe rate of 5.5%.

Details: bought house for 285k, mortgage over 35years!

Im going to look around next week and consider my options!! Would it be advisable to got to a broker or go directly to the banks??

cheers
 
Hi
Would you advise against going fixed for 10 years. Its tempting because at least I will know exactly what has to be paid for the next 10 years.
 
idonno-1 said:
Hi
Would you advise against going fixed for 10 years. Its tempting because at least I will know exactly what has to be paid for the next 10 years.
Click to expand...

Ten years is a long time to fix. Remember that you usually cannot break out of a fixed rate without paying a penalty. So you can't re-mortgage and if you sell the house you have to stay with the same lender for your new mortgage to avoid the penalty. Neither can you overpay your mortgage to any significant degree. Fixed rates are quite inflexible in that way.
 
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