The 'fixed rate' panic

K

kkelly77

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It's been all over the news now about PTSB's massive increase of 1% on their variable rate mortgages. And we're being told it's only a matter of time before the rest of the institutions jump on the band wagon.

I rang the ESB to discuss my own rate, currently 3.83 variable, only to be told they are being inundated with calls and that they are organising callbacks.

Is this the sign of things to come as everyone gets out their crystal balls to decide which way to gamble on the variable rate/fixed rate game?

K
 
kkelly77 said:
Is this the sign of things to come as everyone gets out their crystal balls to decide which way to gamble on the variable rate/fixed rate game?
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It's been this way for a loooooooong time. Try a search of fixed v variable rate. :)
 
PTSB have today removed their fixed rate offering. It's variable only from now on in.

To date the other banks have tended to following PTSB.

This could be the end of the crystal ball.
 
Well i sent in my fixed rate form for 5 years at 5.65 last monday into EBS. I rang them this morning and they confirmed they received it. I just wanted to know what i would be paying.
 
This is very frustrating. I'm the elusive FTB in the current market and this is making me reconsider. I was going to fix for 5 years to hedge against the potentially significant increases in variable rates. Now it seems likely that option will be removed and I will be left exposed to variable rate fluctuations. This means I need to reduce the amount of money I was going to spend or run the risk of being on a mortgage I struggle to make repayments on.

I don't know how introducing more risk into the equation is going to help anybody right now. Increase your fixed rates, sure, but why remove them altogether unless you plan serious variable rate increases - independent of ECB - in the coming years. This is very worrying for me.
 
NorfBank said:
My sources have told me that fixed rates will be reintroduced in a couple of weeks. Who knows?
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They may indeed but at what rates?

I came off a fixed in may and was offered 5.75% for 5 years and 6.1% for 7 and 10 years. In a few weeks these will more than likely be at least 1% higher, if not more.
 
I was in touch with EBS the other day asking about their fixed rate.

I am currently on a variable of 3.83% and their "offer" was -

3 yrs 5.2%
5 yrs 5.7%
10 yrs 6.25%

Now I was shocked at these figures as a friend of mine who is with AIB (3.2% variable) was offered 3.8% for 3 years. What do you think of these numbers? Anyone else getting similar rates?
 
KKelly, just to add my 2 cents, I have a similar story to your friend.

I've being on the BOI SVR for the last 3 years, it's currently at 3.49%

Yesterday I fixed my mortgage for the next 3 years @ 3.74%. To be honest I was happy to get this rate after seeing what other people are currently getting. My Bank told me that the 3.74% rate was a special rate for BOI customers.
 
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