How do you fix your morgage?

How do you fix your morgage? I've been on variable rate for 5 years now and my repayments is quite low at the moment. Is now a good time to fix the morgage at this rate or will it go lower. Also how do you fix it? Is there a penalty for doing this? Do i have to pay anything to do this? How long can i fix it for?
Very confused!!!

go into your bank, or look at the banks website, they will list what their fixed rates are for existing business.
Rates will go lower than they are now, but its anyone's guess if the banks will continue to pass on the cuts. The fixed rates you will be offered from the bank will be higher than the standard variable your on at the moments, so it will cost you more money now but it may save you in the future.

The general consensus is, if you can afford the repayments, then don't fix. The banks wont offer a rate they know they will lose money on.

Your on a variable rate at the minute and this rate is subject to change depending on which way rates are going (down at minute) and are dependent on the lender passing on the cut.

A fixed rate is a different rate from the variable rate you are currently on.

For example, say your variable rate is 4.5%. The lender may have 2 yr fixed at 4%, 3 yr 4.7%, 5 yr 4.95% available.

Best option is to give them a ring and see what is available.

What you decide is up to you and dependent and your individual circumstance.

Jay1981 said:

How do you fix your morgage? I've been on variable rate for 5 years now and my repayments is quite low at the moment. Is now a good time to fix the morgage at this rate or will it go lower. Also how do you fix it? Is there a penalty for doing this? Do i have to pay anything to do this? How long can i fix it for?
Very confused!!!

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You can't fix a rate to match the rate you are paying at any given time. Banks have different rates for variable vs. fixed, and the fixed can be higher than the variable. They will also have different fixed rates depending on how long you want to fix for. For example, the current AIB variable rate for owner occupiers is 3.75%, two year fixed is 3.55%, three year fixed is 3.9% and four year fixed is 4.1%. So, the banks (and everyone else) thinks that interest rates will go down in the short term (hence the 2 year fixed being less than the current variable rate) but they aren't prepared to take that chance over the mid (three-four year) term.

Can i ask a similar question,

I currently have a Tracker with Ptsb @ ECB + 1.2% over 30 years.

Thankfully i have seen a big a reduction on my mortgage in the last few months but the question is,

If Ptsb say that they will no longer be passing on any rate cuts after ECB cuts will that then be the time to Fix or will they have to offer different rates to existing tracker holders seen as thay are not passing the cuts on?


S.B.

St. Bernard said:

If Ptsb say that they will no longer be passing on any rate cuts after ECB cuts will that then be the time to Fix or will they have to offer different rates to existing tracker holders seen as thay are not passing the cuts on?

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They will have to pass on the rate cuts to you if you have a tracker - that's the beauty of it. They don't have to pass on rate cuts to those on standard variable mortgages.