Brendan Burgess
Founder
- Messages
- 52,258
if rates go down enough to warrant it, we should be able to re-fix
if I was a FTB now and getting a mortgage, I'd be fixing anywhere out to 10 years.
It's largely personal, rather than logical.agree with you, but would be interested in why you limit it to 10 years?
It is a remarkable opportunity and should be grasped while it lasts.If you can fix for the long term at a lower rate than the variable, go for it.
Limited potential future room to overpay.
But the Irish market is dysfunctional, and all lenders have higher variable rates than fixed rates.
Does that 2% contractually remain available to me after the fixed term ends even in the scenario where variable mortgage rates are higher than 2%?
There is something a little off with your calculation here Brendan. Interest only on €295k for 7 years with a 0.15% difference would only be €3100.So the additional cost over the next 7 years will be say €6,000
Yes, this is in line with my own €3097 figure above. I appreciate Brendan's effort & help here & I was due to acknowledge same by reply but I too wondered where the €6k figure came from.There is something a little off with your calculation here Brendan. Interest only on €295k for 7 years with a 0.15% difference would only be €3100.
Thanks, so choosing the 7 yr term over the 10 yr term a gamble on whether or not mortgage rates will be higher than 2.5% in 7 years time, something obviously nobody can foresee.Very crudely, let's say the average balance over the 7 years is more like €260k. The 0.15% difference would be roughly €2750.
So it is buffer of 0.4% buffer after year 7 on the €220k balance. If at year 7 the best rates available were 2.5%, then it would be roughly break even.
There is something a little off with your calculation here Brendan. Interest only on €295k for 7 years with a 0.15% difference would only be €3100.
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