Mortgage Options

D

decbuck

Registered User
Messages
10
Hi,
I am going to fix my mortgage rate. I am currently on variable of 3.55%. But I can move to 3 year fixed at the same rate.

I have two questions. Is this advisable?

Also,
TSB are looking for €100 for the privilegde of doing so. Is this common?


3.55 is a bit steep. Would I be better going to re-mortgage with another company?
 
What's your mortgage balance outstanding? What's your house worth? Why are you looking to fix?
 
House is worth 310.

Outstanding is 235.


Want to fix becasue I heard they rates might go up and I want to know what I am going to pay every month. I mean the vairbale rate is not going to drop?? So why not guarnatee that rate for 3 years?

But this is my understanding. I could be getting it all This post will be deleted if not edited to remove bad language ways.
 
In general, you will pay a price for the security of fixing. The banks build a margin into the fixed rates they offer. By taking out a fixed rate, you are really 'betting' that you know more about where rates are going than the banks economists. If you are right, you will win - if they are right, they will win.

decbuck said:
Want to fix becasue
a) I heard they rates might go up and
b) I want to know what I am going to pay every month.
Click to expand...

I've taken the liberty of splitting out your comments into a & b points for clarity. In relation to a), yes - rates might go up - but the rate that you are planning to fix at exceeds the current market variable rate. So why not take the benefit of the lowest rate available now by remortgaging?

In relation to b, you need to think about how important this is to you. Will your lifestyle suffer substantially if you find your self with an extra 50 or 100 per month on your mortgage payments? If so, then fixing is a valid strategy - and you will pay a price for this security in terms of the increased rate that you will pay for the moment.

Personally, if I was in your shoes, I'd be looking to get the lowest possible variable rate as a top priority.
 
OK,
so excuse my ignorance. How do I go about re-mortgaging. Is there much expense involved?

Are we taking thousands or hundreds? Solictors?
 
RainyDay said:
Have a look at the key post on Changing Lenders - Some lenders will cover your legal fees for you, but focus on the rate that you're getting as the top priority.
Click to expand...

You should also let your lender know you are not happy with their rates and are considering moving to a new lender, some will negotiate with you and give you a better rate rather than lose the business.
 
ulster bank have reduced fixed rates today. not by huge amounts, but 5 year fixed rate is now 3.75% as opposed to tracker at 3.15. Coulr be worthwhile moving to this and having the security.
 
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