I hadn't realised that Eddie Hobbs had suggested to tracker holders that they should fix at 5%!!

Brendan Burgess

Brendan Burgess

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These are from a thread in January 2010.

Should I get out of tracker? (PTSB : ECB +1.68%)

mucker2b said:
I have 25 years left to run on the mortgage. I hadn't any specific timeframes in mind as to how long I would fix it for but it's funny that people are ignoring Eddie Hobbs cos that's where I heard it first and that prompted me to post the question.
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dodo said:
I heard Eddie Hobbs on the radio yesterday stating that he had a heavily discounted tracker(now mine is 0.5+ecb)so I would say that Eddie would be same or very close as he said heavily discounted.
He said in the next few months he is going to look around and hopefully get a 10 year fixed rate of 5% .
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I wonder if Eddie is paying 5% instead of around 0.6% at the moment?
 
Actually, it was one of his [broken link removed]


[broken link removed]
Eddie Hobbs - Friday, January 01, 2010
The global economy remains on a knife edge but it's in a far better position than this time last year. It's not going to be clear for some time if the big gamble of socialising all of the toxic debt in banks and passing it to future generations of taxpayers will pay off, but it has to be tried. The uncertainty will overhang all financial decisions for some time to come so here's what to do to balance the risks;

  1. Continue to pay down debt. Ideally get all your lifestyle debt down to less than 25% of your annual net earnings and eliminate the use of credit cards if you can.
  2. Fix your mortgage early this year getting the longest rate you can like AIB's ten year 5% deal. Switch banks if you have to because long term rates are going to go through the roof over the times ahead.
 
You hardly think he was or is infalliable. He might though think he is and he certainly speaks like he thinks that way.

Financial advisors are going to get it right at least 50% of the time and wrong the other 50%. Look at the geniuses of Fitzgerald in the ESRI. Look at all those clever economists.
 
Hi Bronte

We all get stuff wrong. Fair play to Fitzgerald for acknowledging it.

Most of the ordinary punters on askaboutmoney and magic mum disagreed with Eddie's advice.

It did seem obvious at the time, as it is now, that trackers are extremely valuable. The ECB rate was 2.5% when he made that forecast and was down to 1% within 6 months. It's 0.05% now.

While that fall could not have been forecast at the time, maybe he should not have been forecasting increases either.
 
Brendan Burgess said:
We all get stuff wrong. Fair play to Fitzgerald for acknowledging it.
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Before saying he got it wrong he was quick to say the regulator was at fault. If he was really sorry he might have explained why he made such an error. He only admitted it when Joe Higgens quoted him at that time so he was caught rapid. His apology/regret to me just sounds like the mugger who robbed an aul wan and having being found guilty stated 'yeah, sorry I shouldn't have done it'. All that was missing from him was the standard white collar answer to 'I was outta me head on drugs you honour' which is 'On mature recollection I was on medication at the time which may have hindered my thinking'.
 
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