As I'm sure with a lot of people, this PTSB has me a little unsettled. So, we've been looking at all our mortgage options - fixing etc... My question is, in peoples opinion, if AIB (who we're with) and BOI etc follow suit with a Variable rate rise, are they also likely to up their fixed rates too? Do these things tend to go hand in hand?
Fixed rate question.
- Thread starter danika05
- Start date
No. Like duh.
My question was, are the current rates offered i.e. (AIB) 3.19 for 3 years, and 3.5ish for 4 etc, likely to be upped too. These rate were lower a couple of months ago, I believe interbank rates which dictate fixed rate have risen etc, and they were increased. But what I don't know is historically whether there is a precident for fixed rates to follow variable rates. Or whether they tend to be loosely independent... etc, etc...
My question was, are the current rates offered i.e. (AIB) 3.19 for 3 years, and 3.5ish for 4 etc, likely to be upped too. These rate were lower a couple of months ago, I believe interbank rates which dictate fixed rate have risen etc, and they were increased. But what I don't know is historically whether there is a precident for fixed rates to follow variable rates. Or whether they tend to be loosely independent... etc, etc...
This market is not following precedent, if it was then PTSB would wait for an ECB increase before raising the variable rate. Usually fixed and variable rates rise or fall together.
www.moneybackmortgages.ie
www.moneybackmortgages.ie
Thanks for the feedback 
Yes, Norfbank, there doesn't seem to be any precedent at the moment, and I think that is making me the most jittery. I think I'm looking for a few straws to grasp at.
If rates went up a percent or 1.5 percent (and with a likely further decrease in our income in six months with the next budget) we could find ourselves quite stretched. I quite like AIB's 3 year fixed rate of 3.19. It appears to be reasonable value (as fixed rates go). Any opinions?
Yes, Norfbank, there doesn't seem to be any precedent at the moment, and I think that is making me the most jittery. I think I'm looking for a few straws to grasp at.If rates went up a percent or 1.5 percent (and with a likely further decrease in our income in six months with the next budget) we could find ourselves quite stretched. I quite like AIB's 3 year fixed rate of 3.19. It appears to be reasonable value (as fixed rates go). Any opinions?
If you think you will be stretched as a result of rate increases then I think you should consider fixing. You could split the mortgage to get best of both worlds, 50% fixed and keep 50% variable?
It's not worth getting into financial difficulty in six months to save some money on the variable rate now.
It's not worth getting into financial difficulty in six months to save some money on the variable rate now.