Fixing Mortgage Advice

Hi All,

Just looking for some advice regarding my current situation. I know some will look at horror but this is where I’m at. The mortgage is split with my partner who earns 45k, public sector job. My salary is 45k plus 7k expenses.

Current Mortgage is €1592 per month variable at 3.24%
Car loan €438 per month 11 months remaining
Personnel Loan €558 per month fixed at 10% ends may 2013
(to make up remainder of mortgage)

The mortgage is approx 1k per month per person.


My bank have offered a 2yr fixed rate at 3.99% APR 3.45 €1760.48.

I am changing my mind back and forth whether to fix or not or split 50% of the mortgage on fixed and the other 50% variable. Really don’t know what to do.

Sorry if this topic is a rehash of a previous posts but any advice is appreciated as I am a novice in this area. Really need to get a proper handle on things as things cant stay going the way they are.

If you really really need to fix, go the half fix option as you can still put extra money in to reduce your principal.

Fixing is not a good idea unless you are so stretched that you could not keep up with repayments .05% higher than the fixed rate.

Save save save all the money you can that you would be paying into a higher fixed interest rate.
Why would you give this money to the bank? Use it as a cushion if interest rates rise. Talk to the bank about the possibility of withdrawing the extra you've been putting into the mortgage if things get really stretched in the future but TRY leave it there.



Here's what I posted to another person with a similar question:

Re: Fixing Mortgage
Don't fix. Best advice I can give you is advice I've been given.

Pay the extra 45E a month into your variable mortgage now and if interest rates rise and you are a bit stuck for a while you will have the extra money you paid to fall back on.

I don't think fixing for 3 years is long enough for you to see yourself saving in the long term. Friends of mine fixed at 5% and are really regretting it.
The one friend who didnt was stretched as it rose but it didn't stay like that for long. Pay how much you could afford to fix at and know the money is there if you need it/need to skip a payment.