to fix or not to fix?

it is expected that the EU will keep their interest rates low (the same) for the coming three quarters. So wouldn't have thought they would increase a lot or at all before the end of the year. The rise is likely to be capped at 2% so i would be to stay on a tracker until sept (if on the cards) otherwise lock in for as long as possible .

As my personal opinion is that the interest rates around the global in the next two years will increase significantly and be very volatile as the world economy starts to get back on track.
 
fto said:
it is expected that the EU will keep their interest rates low (the same) for the coming three quarters. So wouldn't have thought they would increase a lot or at all before the end of the year. The rise is likely to be capped at 2% so i would be to stay on a tracker until sept (if on the cards) otherwise lock in for as long as possible .
Click to expand...

This is trying to time the market. Don't. Nobody can predict the future.

If you are on a tracker, make them take it from your cold dead hands unless of course you need the security of knowing what your future repayments will be.

Say you do fix in September and the next day interest rates do indeed rise, this is all well and good until your fixed rate is over and your tracker is gone forever so your repayments are then at the mercy of the bank on a variable rate unless you fix again and again and again...

www.moneybackmortgages.ie
 
Hi can anyone tell me how fixed rate is calculated as i feel mine is wrong.. 3years at 4.7 how do i calulate the interest..
 
Would any of you facing the 'to fix or not to fix' dilemma consider hedging your bets and splitting your mortgage say 50/50 between variable and fixed?

I am considering doing that with BOI but I don't know whether its worth it. I will be borrowing less than 80% LTV so the variable rate (VPR 3) applies, currently 2.9%.

The fixed rates vary between 3.2% and 3.8% rolling back to the standard variable rate (VPR 5), currently 3.1% .

I have asked the bank what happens after the fixed rate ends if I go with this option and the mortgage advisor didn't know offhand so she said she would come back to me.

Does any of you know if only the fixed part rolls back to the higher variable rate or the whole loan. Obviously I would try to negotiate it all going back to the (VPR 3) rate but the banks are not very generous at the moment!
 
just remember, banks are going to increase variable rates by at least 1% by the end of this year or very early next year....this is not taking into account ECB rate increases which probably won't happen until end of Q1 2011, could even be later if the crisis rumbles on. My opinion is that growth in Europe won't be that strong, inflation will remain low and so ECB rates won't move too much until 2012, it could even be later than that
 
really interesting thread!
since i read in the sunday times 2 weeks ago i've been sussing out whether or not to change my variable mortgage to a 2/3 year fixed?? they seemed to think that the variable rates will all increase so i'm wondering should i take their offer of 2 year at 3.25% or 3 year at 3.65%???
also on the quote they gave me there are 3 options with PDH LTV Var (and different percentages), can anyone tell me what this is??
 
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