2 year fixed, stay or fix for longer

C

construct_06

Registered User
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hi, i am currently on a 2 year fixed interest rate of 3.39% (4.06 CPT) with Bank of Ireland. This runs until Dec. 2007

My mortgage is approx. 1 year old and is for €190,000 over 35 years.

Now my current repayments are 771.46 (190 x 4.06)


I am wondering what would be the best thing to do long term in peoples opinions.

Option 1 - stay as i am and go onto variable rate in Dec. 2007 (there will prob. have been at least 2 further interest rate rises by then)

Option 2 - Fix now for five years, opting out of the current 2 year fixed

Option 3 - Tracker mortgage with BOI or other

Option 4 - Switch Lender

Also could somebody illustrate simply how to work out mortgage repayments, cos i havent got a clue how to. i assume my calc. above (CPT x Loan value = monthly repayment is right?)
 
construct_06 said:
I am wondering what would be the best thing to do long term in peoples opinions.
Click to expand...
Only fix if you need to - i.e. cannot afford fluctuating repayments - otherwise stick with the most competitive variable/tracker rate for your circumstances. Don't fix in an attempt to time the market, second guess the financial instutions and save money over a competitive tracker/variable rate.
Also could somebody illustrate simply how to work out mortgage repayments, cos i havent got a clue how to. i assume my calc. above (CPT x Loan value = monthly repayment is right?)
Click to expand...
Your CPT based calculations should be about right. Have you tried this calculator?
 
construct_06 said:
Also could somebody illustrate simply how to work out mortgage repayments, cos i havent got a clue how to. i assume my calc. above (CPT x Loan value = monthly repayment is right?)
Click to expand...
Any of the mortgage calculators available online should give you detailed figures. The Jeacle mortgage calculator is just one example.

As for the choices, it's down to your own circumstances. If you are concerned about meeting the mortgage payments over the five years given possible % increases but are happy with the 5 year fixed deal then it would seem a good idea. If it's simply to try and save money (and time the market) it may not be as beneficial as you hope. Nobody can say for sure the best route, they can simply give opinions and how they see the rates going over time.

Edit: Post crossed with ClubMan
 
If you break your current fixed rate you'll have a penalty and you'll lose the benefit of the cheap rate for the next 15 months. No one knows what interest rates will be at the end of 2007 so why not sit tight and try to build up some savings between now and then to either reduce your mortgage balance or subsidise your repayments if rates are higher?

Sarah

www.rea.ie
 
ya, there is a lot of mortgage calculators online but i'm interested in the nuts and bolts, i've no financial background.

I suppose what i want to be able to calculate is the monthly repayments if i interchange any of the following.

term
interest rate, CPT

Ya i suppose i may have been trying to second guess the matket alright

but if current variable rates are:
(for existing customers of Bank of Ireland), 4.44%, 4.5% APR
how do i work out the repayments? i cant seem to find the CPT value on their website
 
construct_06 said:
I suppose what i want to be able to calculate is the monthly repayments if i interchange any of the following.
term, interest rate, CPT
Click to expand...

:confused: which is exactly what the calc will do??? No?

Change the details to suit your case and then adjust as necessary. You can also view the impacts of future interest rate rises, lump sum payments etc etc.
 
thanks tried the formula alright, will take a bit of tweaking to get used to.

In [FONT=Georgia,serif][SIZE=+1]Karl Jeacle's[/SIZE][/FONT] Mortgage Calculator what interest value should i be inputting, the interest rate, the apr or the CPT?
 
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