Time to switch to fixed rate?

S

suds

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Now that the ECB have put up interest rates, does this suggest that it is a good time to switch to a fixed rate? We are currently on a Tracker at 3.1. How much more would we be likely to pay for a fixed rate for, say, five years?
 
Have you looked at the Best Buys?
FIXED RATE FOR FIVE YEARS




LenderAPRNominal RateCost/€'000

National Irish Bank3.60%3.65%€5.88

IIB Homeloans3.69%3.79%€5.95

Ulster Bank3.70%3.79%€5.95

Permanent TSB3.70%3.79%€5.95

Bank of Ireland3.80%3.85%€5.97

ICS Building Society3.80%3.85%€5.97

Irish Nationwide3.80%3.98% C€6.05

EBS Building Society3.70%3.99%€6.05
Click to expand...
Personally, I'd sit tight on a 3.1% tracker... now 3.35%. It would take a few more ECB rate rises before you'd be losing — especially as all the rates quoted above are sure now to rise also.
 
See this recent thread and the many other existing threads dealing with the whole fixed versus variable question.

Please note that the best buys list may not be up to date with recent (fixed) rate changes so don't depend in it for now.
 
Thanks for answering. My mortgage is brand new and making these kinds of decisons is difficult as it seems that it is all a matter of opinion and guesswork. I guess I just worry about interest rates shooting up suddenly (major oil crisis of some kind for e.g.) and finding it's too late. Well, will think about it for a while longer.
 
DrMoriarty said:
Personally, I'd sit tight on a 3.1% tracker... now 3.35%. It would take a few more ECB rate rises before you'd be losing — especially as all the rates quoted above are sure now to rise also.
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Same here, the fixed hardly ever pays off - just insurance policies and like insurance policies there is a cost for being able to sleep if over exposed.

Roy
 
depending on who your mortgage company is, you could definitely save money by switching now to their fixed product, before it's too late!!! The institutions are AIB and NIB. Their fixed rates are just marginally above the existing variables. check the rates out [broken link removed]

see here, Unison/Indo site requires once-off registration.
 
I don't mean to be smart but surely its too late to be thinking about fixing. A vox pop was done on 5-7 live last thursday evening where alot of people were saying I suppose now with the increase its time to be thinking about changing - the change was well signalled for about 10 days surely that was the time to decided whether or not to change?? I think practically all the banks have raised the rates at this stage. I think if you are thinking of fixing now you need to base it on whether you believe there will be another increase anytime soon, rather than thinking about the last increase.
Better stop my rant before people but me in the Dan McLoughlin category:)
 
pator said:
I don't mean to be smart but surely its too late to be thinking about fixing. I think if you are thinking of fixing now you need to base it on whether you believe there will be another increase anytime soon, rather than thinking about the last increase.
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Not if you are with AIB or NIB as Irishpancake has pointed out.
 
That Indo article gives the NIB 3-year rate as 3.45% (as does www.primafinance.ie); the Providence website says 3.35%. Which one is correct? :confused:

[Edit: To answer my own question — it's the former. Rang NIB this morning (because they don't publish their current rates on the website) and they confirmed the following rates:

2 year fixed — 3.29%
3 year fixed — 3.45%
5 year fixed — 3.8%

Now I'm giving serious thought to switching from my (LTV<60%) tracker — was 2.79%, will now be 3.04%. One more 0.25% rise in the ECB rate will bring it level with the 2 year fixed offer — 3.29%.

Hmmm... must read all the small print and check whether there's a fee for switching.]
 
DrMoriarty said:
That Indo article gives the NIB 3-year rate as 3.45% (as does www.primafinance.ie); the Providence website says 3.35%. Which one is correct? :confused:

[Edit: To answer my own question — it's the former. Rang NIB this morning (because they don't publish their current rates on the website) and they confirmed the following rates:

2 year fixed — 3.29%
3 year fixed — 3.45%
5 year fixed — 3.8%

Now I'm giving serious thought to switching from my (LTV<60%) tracker — was 2.79%, will now be 3.04%. One more 0.25% rise in the ECB rate will bring it level with the 2 year fixed offer — 3.29%.

Hmmm... must read all the small print and check whether there's a fee for switching.]
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In fairness, i think the providence figure is a typo, coz they are showing 3.50% APR for both NIB & UB, but UB's rate is shown as 3.45% (3-yr fixed).

The bad news is that AIB rates are going up, so it's already too late, AFAIK.
 
podgerodge said:
Where did you see this? Their webpage www.aibmortgages.com still quotes the same rates?
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Family member (my youngfella;) ) fixed yesterday, had to do it by fax, in a hurry, and was told by bank employee it was the last opportunity before rate rises, which i shared with the board. Perhaps the bank person was wrong, that's why i said AFAIK. Web-sites are not always updated immediately changes occur.

My advise to AIB customers who wish to fix, is to ring immediately. But it may just be too late:(
 
Conversely, when I asked my NIB branch manager whether I should get down there to do the deed today — before the rate was hiked or withdrawn — he said that there was no hurry, he hadn't heard of any such plans.

Then again, it wouldn't be the first time that news from On High reached the branch network only after it had become 'public knowledge'... ;)
 
Glad I got in there yesterday and switched to NIB's 3-year fixed at 3.45%!
(Or rather, I will be when/if the ECB rate goes up another 0.25% or 0.5% between now and 2009... ;))
 
AIB rates from today:

Just rang AIB to check their nominal fixed interest rates from today -

3yr was 3.47 now 3.98 - increase of .51%
4yr was 3.65 now 4.20 - increase of .55%
5yr was 3.82 now 4.30 - increase of .48%

So they have increased their fixed rates by double the ECB increase!
 
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