markets getting remortgage should we worry?

L

lindylou

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just about to remortgage should we go ahead with the current state of the world markets? will we be in over our heads in 6 months? will interest now just go up and up and up? don't want to get a new kitchen and not be able to fill the cupboards!!!! our new mortgage will be bigger our repayments are what we pay at the moment cos we consolidated and our new interest rate is lower should we plough ahead?
 
The fact that you are remortgaging to a lower rate is a good thing - so go ahead with that anyway. It is the borrowing more money at the same time that is worrying you.
If rates do rise (and they probably will) - I suppose you will at least be no worse off than if you had not remortgaged. If you can afford the repayments - and could also afford them if the interest rates went up by another 1% - 2% then you should be OK. If the extra loan is for a new kitchen - and you really need it - then maybe cutting back on other expenses will help (going out/drink/fags etc). Make sure you are getting the best rate available for your circumstances. (See Best Home loan Deals)
 
thanks for your reply we will be doing other things besides the kitchen just was worried that we'll go in over our heads. do you think that it would be a gradual rise as of late? or will they jump up by 1% - 2% straight away? if it meant that such things as cigs and drink had to go that wouldn't really be a hardship but you do have to live!!! don't want to be on the skids just cos we decided to update the house! or worse case scenario loose the house cos we end up not being able to afford it!
 
IIB Bank chief economist Austin Hughes says the stock-market turmoil could turn out to be good news for mortgage holders.


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sullyman said:
IIB Bank chief economist Austin Hughes says the stock-market turmoil could turn out to be good news for mortgage holders.


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He also said that after the ECB went to 3.5% they would be 'done & dusted' on the interest rate increases front.
 
beattie said:
He also said that after the ECB went to 3.5% they would be 'done & dusted' on the interest rate increases front.
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I would agree with discounting anything any Irish bank economist says. They have been wrong at every stage. The markets have priced in 0.25 point rise in the base rate in September, so it is unlikely that this will not happen. Mark Coleman (former ECB economist) said as much on Newstalk Saturday morning. Whether there will be another rise this year is more debatable.

I would re-mortgage if it is going to save you money on your current repayments, but I would be reluctant to increase the size of the mortgage for lifestyle spending (which I would count a new kitchen as (assuming you are talking about units etc)). Remember you will be paying for that debt over 25 years. It might work out cheaper in the long term to get a loan to pay for the kitchen. Get as short a term as you can afford and cut down on other spending to pay for it.
 
lindylou said:
do you think that it would be a gradual rise as of late? or will they jump up by 1% - 2% straight away?
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Do you really think rates would rise by 1% or 2% in one go in an euro country? To ask a question like that hints at the fact that you shouldn't be borrowing
 
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