to fix or not to fix....?

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junestar11 Posts: 98
Hey everyone .. this is such a headwreck of a topic but would love some advice. so our mortgage fixed term is up the end of december. I was just wondering has anyone any ideas on how long we should fix our rate for. We had originally fixed for 2 yrs at 3.4 % , so now what were looking at if we fix for 2yrs again is our payments going up by 200euro per month, if we fix for 3yrs we are looking at 230euro increase per month and if we fix for 5yrs its 300euro extra per month. i know the interest rates are only going to go up but in 5 yrs time they could still be pretty much the same as what we are getting quoted now and we have the extra 100euro in our pocket per month. Anyone any sound advice.. economics and business were never my strong point :compress O:|
galwaygirl2010 Posts: 2447
Its a difficult one to call - this article in the Indo might be of interest: http://www.independent.ie/business/pers ... 57198.html Im presuming there is nothing in your contract to state at the end of your current fixed term your mortgage will revert to a Tracker rate? If it does, take the tracker rate and dont let go!.
junestar11 Posts: 98
I dont think there is.. but ill double check this evening .. thanks a mil galwaygirl! I think anything to do with this kinda stuff makes my head swirl give me science stuff any day! :)
PaniniRoses Posts: 3628
We recently went through the same debate. We ended up going for a 3yr fixed - with 2 small ones we need the certainty but we're hoping by then we'll be in a position to knock a decent lump off the principle and rates won't have gone up too much to screw us again...
junestar11 Posts: 98
i know its so hard to call isnt it paniniroses?! we have no kids yet.. but just dont want to be paying more than what we need to.. our plan is also to pay a lump sum off the principle every yr (if we can) as well as our monthly repayments..i think we will probably fix for 3 yrs also. hopefully things will be more stable then
Bigsurprise Posts: 961
[quote="junestar11":btwn48ml]i know its so hard to call isnt it paniniroses?! we have no kids yet.. but just dont want to be paying more than what we need to.. our plan is also to pay a lump sum off the principle every yr (if we can) as well as our monthly repayments..i think we will probably fix for 3 yrs also. hopefully things will be more stable then[/quote:btwn48ml] Talk to the bank about paying off extra money on the principle before you fix as they may not let you once you have fixed. We pay more each month but we got this approved & then fixed as they told us to do. Also state it is the principal you want the money paid into.
junestar11 Posts: 98
thanks big surprise... we have a meeting with the bank next week anyway to see what spin they put on it all and aswell to discuss paying money off the principal. Thanks for all the help :)
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