My mortgage -fix now or leave it variable

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blanketyblank

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I owe about 40000 on my mortgage _ I've the option to fix now or leave it variable
The variable is 3.7 now 4.15 in September
The best fixed for which I'd have to do a valuation is 3.75 this is ltv 50%
The valuation would be 150 euro
5 years remain on mortgage

Basically I'm wondering what to do? What will rates do?
Thanks
 
You'll have to ask the Central Bank to look into their crystal rate ball for your last question.

Do rates going up bother you? Would they affect you massively. What is making you think about fixing. Do you want peace of mind.
 
I suppose I'm wondering is paying 150 for a valuation worth it to get the lowest rate?
But then if rates started jumping up it might be worth it!
I got my first letter from EBS a while ago I'm coming out of a fixed rate of 2.9%
The lowest rate on that letter was 3.3 % FOR LTV 50% THE rates I quoted above come in in Septemver
It isnt a huge amount extra every month if I just stay variable but if rates jumped it might be
I'm prob overthinking a bit
Dithering over what to do!
 
blanketyblank said:
I suppose I'm wondering is paying 150 for a valuation worth it to get the lowest rate?
Click to expand...
An estate agent valuation?
Many (most?) will do it for free.
Even if you do have to pay it should be trivial to work out if/when it pays for itself in terms of lower interest costs.
 
There isn't a single estate agent in the country who will provide a valuation for this purpose for free.

Your lender will have agreed a price with their accepted panel of valuers.

With 40k left over 5 years, it's not going to make you or break you if rates change by 1%. But I'd be inclined to fix for certainty. It's unlikely that variable rates will drop while you've any material balance remaining.
 
RedOnion said:
There isn't a single estate agent in the country who will provide a valuation for this purpose for free.
Click to expand...
I'm constantly getting leaflets in the door offering free valuations and not just for probate etc.
 
ClubMan said:
I'm constantly getting leaflets in the door offering free valuations and not just for probate etc.
Click to expand...
Those are free valuations in order to sell your house as the auctioneers wants to encourage you to sell. They will not give an official valuation that can be relied on by a bank. My auctioneers gave me 'free valuations' and then gave me a contract. But it's not like the one you need for a bank valuation. Plus as RedOnion said the banks have a panel of auctioneers you have to pick from.
 
Do you actually need a valuation, sometimes if you speak to the bank they will waive this requirement, particularly in your situation with such equity (so clearly you've nearing the end of your term)
 
You probably won't need a valuation to fix with current lender with such small mortgage. Ask them. A lot of banks won't allow you to switch to them with a 40k mortgage. Not worth their while.
 
There is scope for banks to increase their rates well in excess of 6%.

For example, the 5 year 'Green' rate with AIB was 2.15% last June while the ECB rate was -0.50%.
Today, the 5 year 'Green' rate with AIB is 3.75%, which is the same as the ECB rate now.

A lot depends on the size of current account deposits earning 0%. If they start to drop significantly, I suspect banks will raise rates further, regardless of an ECB pause.
 
I rang my bank about this and they said I had to have it - I was asking re the lowest variable read with LTV less than 50 %
Perhaps twould be different for fixing.

I think it's ridiculous considering the value of my house and how much I owe. The value is clear with a glance on DAFT

Anyway thanks for replies
 
Ring someone else in the bank, you might get a different answer ! I'd send in the query by email.
 
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