to fix or not to fix?

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fuzzy10

Registered User
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141
Hi, here is the background..

Mortgage of 285k in 2006 (PTSB), fixed rate finished in 2008. offered tracker variable +1.5% ecb of 5.8% or fix again for two years at 5.7%. As rates were rising at the time, i decided to fix (which I regret to this day). I never benefited from the rate decreases & also lost my tracker rate. DISASTER.... why,why me!:rolleyes:

Well, that’s the past and now i have the same dilemma this July. Should i stay at the mercy of the banks on a variable rate or fix again at a higher rate?

Any advice much welcomed.... before i get the rate offers!
 
I would wait and see what the offers will be at the time. There are 3 months where decisions will yet to be made with the ECB on the rate they set.
 
I'm currently on a fixed mortgage rate of 4.73%. I was offered the following rates from my bank:

Variable: 3.65%
1 Year Fixed: 3.99%
3 Years Fixed: 4.5%
5 Years Fixed: 5%

Has anybody any advise on the best option?

Thanks.
 
Wishes said:
I'm currently on a fixed mortgage rate of 4.73%. I was offered the following rates from my bank:

Variable: 3.65%
1 Year Fixed: 3.99%
3 Years Fixed: 4.5%
5 Years Fixed: 5%

Has anybody any advise on the best option?

Thanks.
Click to expand...

Hi,
Which option did you take? I would possibly take the 3years fixed. Its a personal decision really.
 
Hi Fuzzy10, I decided to take the 3yr fixed. It was the best option under the circumstances.
 
All the advise from the experts over the last while to fix your morgtage if you could get a rate under 4%.

However this famous Greek crisis seems to be putting a real spanner in the works, with the possibility of the ECB reducing interest rates rather than increasing them to aid credit flow and steady the markets.

I too am in 'fix or not to fix' dilema and must decide within the next 2 weeks, I dont really know what to do. But what seemed like a simple choice 2 weeks ago is not so simple now. One would need a crystal ball!!
 
i agree.. its a big decision.

I made a massive mistake in 2008 fixing while rates were rising (and losing my tracker). I don’t want to make a big mistake again this time around!

I’m seeing a "financial advisor" when i get my rate offers from PTSB. A second opinion could be useful.
 
Bilzer19 said:
However this famous Greek crisis seems to be putting a real spanner in the works, with the possibility of the ECB reducing interest rates rather than increasing them to aid credit flow and steady the markets.
Click to expand...

This is only relevant if you are on a tracker and if you are on a decent tracker you should keep in.

Variable rate will be going up regardless of what the ECB does.

www.moneybackmortgage.ie
 
Any changes in the ECB rates will directy affect varaible rate morgtages as well as trackers. So it is very much a matter that must be taken into account when one is making a decision
 
Bilzer19 said:
Any changes in the ECB rates will directy affect varaible rate morgtages as well as trackers. So it is very much a matter that must be taken into account when one is making a decision
Click to expand...

I agree with you. ECB rise will increase trackers (obviously) and the banks will put it straight onto the variables too.

I've the option of a 4.15% variable or a 4.25% (ECB + 3.25%) tracker with PermoTSB. Of those two I'd be tempted to go with the tracker which would isolate me from the bank getting a notion and putting up their rates on their own.
 
If you are fixing for the next 3-5 years at a rate of e.g. 1.5% to 2% above the tracker rate available, essentially you are saying that you expect interest rates to rise way above this margin within this timeframe e.g. that interest rates will rise by as much as 3-4% within the next 3-5 years e.g. if you are paying a premium of 1.5% to fix, then for every day that interest rates stay at todays rate, you will need them to be 3% above todays rate in order to break even.
 
The events of the weekend would suggest that fixing now (below 4%) is probably the wise option. It would appear that the ECB will not now reduce interest rates because of the inflation risk associated with doing so. In the case of trackers all the experts say to hold on to your tracker under any circumstances. For me it seems if you have a tracker hold it. If you havent then if you can get a 3-5 year fixed morgtage below 4% take it or if its is fixed above 4% you shoudl move back to variable as soon as possible. Remember if you fix it is difficult to adjust terms etc for changed circumstances. This is an opinion only but I am no expert just waht I am gathering from reading the newspapers and from other websites.
 
I have also heard the advice that if you can fix at 4% then do , otherwise stick to your tracker or st. var. rate..
I am coming off a 2 year fixed @ 4.8%.
The offers are:
2y = 4.2%
3Y = 4.3%
5y = 4.95%
My default is to go onto a tracker +1.1%. Ulster made some mess of the original Ts & Cs so the must offer me the tracker. The fixed offers arent the worst but I reckon the tracker is the best option. Am i thinking right? Also if I fix this time I lose my tracker.
cheers.
 
Spoke to a broker yesterday who said I should have stuck with the variable or 1yr fixed because he thought the 3yr fixed that I went for was too high a rate.
 
shoconne said:
I have also heard the advice that if you can fix at 4% then do , otherwise stick to your tracker or st. var. rate..
I am coming off a 2 year fixed @ 4.8%.
The offers are:
2y = 4.2%
3Y = 4.3%
5y = 4.95%
My default is to go onto a tracker +1.1%. Ulster made some mess of the original Ts & Cs so the must offer me the tracker. The fixed offers arent the worst but I reckon the tracker is the best option. Am i thinking right? Also if I fix this time I lose my tracker.
cheers.
Click to expand...

What mess did ulster make?
 
not 100% sure fuzzy.

A few months ago they sent me a letter regarding my top up mortgage saying that they made some mistake at the last fixing and that i could revert and backdate to a tracker @ 1.1% if i wished. I was on 5.2% fixed so I was delighted.
Regarding the main mortgage they said that there would be no cancellation of the fixed rate, however they would be offering the "old" tracker rate as the default option after the fixed period, as per the t's and c's. It all got a bit vague at this stage and i didnt persue it further. (maybe I should have?).
I think at the last fixing the options given were not correctly stated regarding the default options - my only guess is that the regulater caught them with their pants down and forced them to offer all affected customers the old tracker rate???. Also my mortgage is with the old First Active - now Ulster.

Did anybody else get similar letters form First Active??
 
fixed rates

Hi i have just recently fixed my mortage at 4.7 for 3 years. Viewing my account on line i check each month the remaining balance after the DD has been paid, when on the variable rate it would reduce by about 450 per month, however i noticed today that my balance has only reduced by 230???
How can that be if my monthly payments have gone up to meet the fixed rate increase..
Any help would be an eye opener..
 
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