Refix Preemptively

C

cian59

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Coming to the end of a 5 year fixed rate at a low percentage (2.1%) so facing into a rise when it expires at the start of next year regardless. However, the talk of potential interest rate rises are also concerning me.

Would people consider preemptively taking advantage of the current interest rate offerings and breaking now? Or does the year of lower interest rates give some cushion to wait and see what will transpire over the next year?
 
Hi Cian

It is unlikely that there will be any break fee as you fixed when rates were lower.

Your rate does not expire until this time next year so you have 10 months to go.

What is the best rate you can get at the moment?

How much extra interest will you pay over the next 10 months?

I am sick and tired of saying this but I will say it again - ignore the payments - just look at the interest charged.

So, if you have a balance of €300k at 2.1% and the lowest rate you can fix for now is 3.1%, the extra cost this year will be

€300,000 @ 1% extra = €3,000 a year or €2500 for 10 months.

Interest rates may be higher than 3.1% early next year, but they might not.

My gut feeling would be not to give up a 2.1% rate, unless you can fix at around the same rate.

But no one knows. If your finances are very tight and an increase to 4% would put you in arrears and you can fix now at 3%, then the reassurance might be worth it.

Brendan
 
I'm in almost the same boat. Fixed (1.95%) end at the end of the year. My plan was to start the process and then drag it out, but be ready to pull the trigger if a rate rise becomes imminent.
 
I am coming off my 5 year 3% fixed rate in September, from what I can make out the 7 year fixed rate is currently 3.35% with PTSB.
I would be very happy to be able to lock in at that rate.

My other mortgage is fixed at 3% until 2029.
 
Sarah Ryan said:
from what I can make out the 7 year fixed rate is currently 3.35% with PTSB.
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For < 60% LTV.

Mortgage Interest Rates | permanent tsb

No matter where you are on the property ladder we have a mortgage rate that will suit you. View our up to date mortgage interest rates.
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Who knows what might happen between now and September though - both with markets/rates in general and with the sale of PTSB specifically.

Implications of ptsb sale for mortgage holders

I have never been a fan of ptsb given their long track record of treating mortgage customers very badly. Charging much higher rates than the other lenders when there was no switching market so customers were prisoners Massive discrimination between new and existing customers e.g. offering new...
www.askaboutmoney.com
 
ClubMan said:
For < 60% LTV.
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Yes which is what I have based on my calculations.
Now foundation maths and 24 years on finance, high chance they could be wrong but Google appears to confirm them for me too so I think the calculator works.
 
ClubMan said:
Who knows what might happen between now and September though - both with markets/rates in general and with the sale of PTSB specifically.
Click to expand...
A vulture bank oh lovely, can't wait to see what fresh hell awaits. Better start getting into a position to switch if needed.
 
atgate said:
but be ready to pull the trigger if a rate rise becomes imminent.
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Well if you are dealing with PTSB just don't be waiting for them to contact you in a hurry!

Called open24 on Wednesday morning to request a call back from the mortgage advisor, was told I could expect a call back on Thursday at some point.

I had to put in a chaser with them this morning, still no call back.

I may do it the old fashioned way and go to the branch first thing on Wednesday morning. Unless there is some other magic way to contact these people I am not aware of?
 
cian59 said:
Would people consider preemptively taking advantage of the current interest rate offerings and breaking now? Or does the year of lower interest rates give some cushion to wait and see what will transpire over the next year?
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I finally got to speak to somebody in PTSB today. I didn't know that I would need a valuation to negotiate my new rates. I didn't need one when I decided to give up the tracker and go on a fixed rate.

So might be best to touch base with your bank now to see their requirements. I need to get valuation done by somebody on their panel so I have that locked in now for next week to be done asap.

There is no time to be dillydallying.
 
Morning,

I have been thinking about a pre emptive fix myself. We currently have 12 yrs left on our mortgage, approx €120K and in the last year of a 3.1% fixed 4yr Green Rate. Bank have confirmed we can fix today, for the next 4 years, at 3.2% with a breakage fee of <€200. It will mean a monthly increase of about €8. Feel it's a no brainer.

We do prefer the certainty of payments and have terrifying memories of multiple rate increases over a short period of time back at the start of the mortgage term. Any thoughts?
 
SCA911 said:
We do prefer the certainty of payments and have terrifying memories of multiple rate increases over a short period of time back at the start of the mortgage term. Any thoughts?
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That's not much extra. For peace of mind for an extra 3 years (4 minus the one remaining) I'd go for it.
 
It is definitely not clear cut. No one knows the direction of interest rates.

Your repayments at 3.2% will be about €1,000 per month.

If interest rates rise to 5.2%, the repayments will increase by €120 per month.

If that would cause you financial difficulty, you probably should go for the insurance of an extra 3.5 years fixed at a rate you can afford.

The downside of fixing for 4 years is that if you want to overpay it, you may well face a penalty.

If a 2% increase wouldn't cause you any difficulty, then I would be tempted to leave it and review it when your fixed rate ends.



Brendan
 
Got my paperwork from PTSB this morning, fixed rate of 3% due to end in September.
I have fixed in now at 3.35% for the next 7 years and no fees charged to break early.

I have another mortgage on the property, am waiting on paperwork for that one too, it's at 3% also but not due to expire until 2029.
Need to do some maths and look at the crystal ball to make a decision on that one.
 
On my letter
20260407_094222.webp
 
Surely that relates to your current fixed rate agreement and not to the 7 year 3.35% rate that you plan to move to?
Sarah Ryan said:
I have fixed in now at 3.35% for the next 7 years and no fees charged to break early.
Click to expand...
I doubt that there's no fixed rate breakage penalty fee guaranteed for this 7 year deal which is what the above comment seems to suggest.
 
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