These are my personal musings:do you think that it would be wise
Hi,
What worries me are the interest rates that people were paying in the 80’s and 90’s when the country was in a recession so that why I’m thinking they might go up again but maybe circumstances were different at the time
That's a nice idea. People usually talk about splitting between fixed & variable, but splitting over different fix periods might be attractive in current market.I'd look at a blended fix
Ireland saw precisely one year of negative GDP growth in the 80s and 90s.Hi,
What worries me are the interest rates that people were paying in the 80’s and 90’s when the country was in a recession so that why I’m thinking they might go up again but maybe circumstances were different at the time
Thanks for the advice, I will look into the 7 years mortgage as well. The main thing for me is the peace of mind of knowing how much I will pay per month for the next 10 years and the security of a fixed rate.These are my personal musings:
1. I don't ever assume we can predict interest rate movements better than the market. If we could, we'd be very wealthy. The market is currently trading at negative interest rates for being 10 years.
2. There is great security in knowing exactly how much your largest monthly expense will be over a long period.
3. Nothing is going to change dramatically in the next few weeks.
My advice:
If fixing long term, I'd be looking for a sub 3% rate. E.g Ulster Bank at 2.95%, with the flexibility to overpay by 10% of the balance each year. So you'd save 3.5% over the 10 years, compared to BOI, and have the added flexibility of overpayment without break fee.
Have a look at 7 year rates too. You might get better value there, and still give yourself a lot of insurance against rate rises.
In the short-term there seems to be very little reason to expect long term rates to rise above where they were up until recently. So 10 year fixed rates shouldn't be expected to rise any time soon
I agree with redOnion on the benefits of Ulster Banks overpayment options but if you wanted to be a bit more aggressive I'd look at a blended fix. KBC in particular seem to offer a nice array of rates. Spreading a mortgage over 1,3,5 & 10 years seems a nice mix of maturities and rates. Take advantage of the lower short-term rates for the portion of the mortgage you can pay while having the insurance on the balance that you know you can't touch for a number of years yet.
Ok, not in a recession technically but I meant when the economy wasn’t great.
When you see the interest rates (source cso)
1979 14.15%
1980 14.15%
1981 16.25%
1982 16.25%
1983 13.0%
1984 11.75%
1985 13%
1986 12.5%
1987 12.5%
1988 9.25%
1989 11.4%
1990 12.37%
1991 11.95%
1992 13.99%
1993 13.99%
1994 7.49%
What was the reason then for those high interest rates?
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