M
makus
Guest
Hi There
Long time reader, first time poster. I didn't want to hijack anyone else's posts regarding related topics; however your advice would be much appreciated.
Summary: Husband and I fixed our mortgage at 2.8% for 2 years which ends in August. Repayments are manageable; we are both working, I am in a contract role and currently pregnant. My contract will end upon commencement of my Maternity leave in April but I plan to return to the workforce in late 2011-early 2012 (assuming I can get a job!).
Our provider is currently advertising fixed rates of up to 4.39% for 5 years. Considering I will be relying on savings for the second half of this year, we are looking at our options around mortgage repayments and concerned that interest rates are only going one way, and fast. We could manage repayments of 4.39% and would have peace of mind knowing that this was the rate for 5 years. So I have the following questions:
1. Should I contact the bank and request to move to the 5 year fixed rate now rather than waiting to see what the rates/ fixed options are like in August? It is the difference of about €400 per month extra. Is this better in our pockets or the banks?
2. Would the bank agree to this in advance of our current fixed term ending or would they insist we wait until August to discuss? We paid some money into the mortgage a few months ago and they didn’t charge us a break clause for doing so.
Many thanks in advance for your help
Makus
Long time reader, first time poster. I didn't want to hijack anyone else's posts regarding related topics; however your advice would be much appreciated.
Summary: Husband and I fixed our mortgage at 2.8% for 2 years which ends in August. Repayments are manageable; we are both working, I am in a contract role and currently pregnant. My contract will end upon commencement of my Maternity leave in April but I plan to return to the workforce in late 2011-early 2012 (assuming I can get a job!).
Our provider is currently advertising fixed rates of up to 4.39% for 5 years. Considering I will be relying on savings for the second half of this year, we are looking at our options around mortgage repayments and concerned that interest rates are only going one way, and fast. We could manage repayments of 4.39% and would have peace of mind knowing that this was the rate for 5 years. So I have the following questions:
1. Should I contact the bank and request to move to the 5 year fixed rate now rather than waiting to see what the rates/ fixed options are like in August? It is the difference of about €400 per month extra. Is this better in our pockets or the banks?
2. Would the bank agree to this in advance of our current fixed term ending or would they insist we wait until August to discuss? We paid some money into the mortgage a few months ago and they didn’t charge us a break clause for doing so.
Many thanks in advance for your help
Makus