How to choose mortgage type as FTB? fixed or Variable ?

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wanagetahome

Registered User
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Hi all,

Well I think things are finally comming together on the house front, myself and my boyfriend have been approved for a mortgage and have put a booking deposit on an apartment in the location I was born/raised in and am over the moon (but still being realistic, it's not over till it's over) anyway I'm very confused as to weather we should take a fixed rate or variable rate mortgage? I know it's very low on variable at the moment, but I think I'd like to know exaclty what we have to pay every month until we get on our feet, but then we could miss out on slight decreases on the variable.

The mortgage is for 220K through ICS mortgages. Any advice would be greatly appreciated.

I'm just praying it all runs smoothly for us from here on out, we've been let down a couple of times before this.

Thanks a million guys
 
If you need to know that your repayments won't go up, then a fixed rate might be good for you. But again, as you point out you'll miss out on any decreases.......

If the past few months has shown anything, with so many people ****ed off about their fixed rate mortgage, it's that you need to think about what would be the better outcome for you.

For example, if rates rise & your mortgage repayments increase, would that be worse than if rates fell & you missed out on any decreases.

Other things to consider, rates are very low already - no-one knows how much lower they will go. Also, even is you get a stndard variable rate, there's no guarantee you'll get decreases passed on.

It also depends on the difference between the fixed & SVR you've been offered.
 
Thanks Moneyhoney

That was my thought on it. I'm glad to hear someone else with the same point. we can very comfortably afford the fixed rate. So i'd rather be guaranteed that sum every month, especially for the first year or two rather than take a big risk, where we could save a 50 euro a month or even end up paying more than we can afford. Especially since we have to floor and furnish the the apartment.

I'm not sure if it's because im a FTB but im finding it difficult to make an absolute decision.

This whole process is probably the most stressful thing I have ever done in my entire life. i'm surprised I'm still in my relationship haha.
 
wanagetahome said:
I'm not sure if it's because im a FTB but im finding it difficult to make an absolute decision.
Click to expand...

Don't count on it - all the fixed rate hysteria over the past few weeks has made it a difficult decision for everyone.....I'm ona tracker & know rates will rise at some stage, but by how much, and how quickly? Dunno if I should fix, or stay on tracker & hope for best cause if I fix, that's the tracker gone for good. :(
 
I know, It seems there is not one person not affected by this 'situation' we're in. I'm just counting myself lucky we even got mortgage approval with the way things are at the moment and an absolutely amazing deal on an apartment. This time last year there would have been no hope of me living in the Dublin 16 area as a FTB, but here we are now almost there. we're even in a situation that if one of us lost our jobs we could still scrape by. so I'm pleased about that at least. So I'm going to go for the fixed rate, better the devil you know than the devil you don't, especially starting off.

I'm just going to have to keep praying now it won't all fall through on us.

Thanks again
 
Can you tell us the rates available to you by ICS at the moment. It's good that you could still afford it if one of you lost your job. As you mentioned you are not married have you thought throught the implications of purchasing such a major asset together and have you made a legal agreement in relation to this?
 
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