What mortgage rate should I go for?

W

Willymac

Guest
Hope to draw down my mortgage soon. I had decided on the 2yr discounted standard variable rate with BOI for 5.29% (SVR less .50% per yr for 2 yr's) but I'm now questioning whether I should fix or go with the tracker! Fixed rate for 2yrs is 5.95% rolling ECB +1.25% or tracker for 5.45% ECB +1.20% for term.

Head is wrecked! :confused: Can someone please advise?

Thanks in advance.
 
Re: What mortgage rate should I go for?!!

A competitive tracker is most likely the best bet on minimising total interest costs over the lifetime of the loan. Discounted variable rates are sometimes just bait to drag you into a less competitive rate longer term. Only fix if you really need to and certainly not in an attempt to time the market and save money longer term compared to a competitive tracker rate. Are BoI the most competitive lender for your specific circumstances? Have you shopped around? Don't forget to shop around for mortgage protection life assurance, home insurance etc.
 
Re: What mortgage rate should I go for?!!

Thanks for the advice Clubman. :) Yeah we have shopped around.
 
Re: What mortgage rate should I go for?!!

Heres a good site to check up on rates etc....not sure how uptodate they are,ICS defo isnt uptodate.

[broken link removed]
 
Re: What mortgage rate should I go for?!!

kopkidda said:
Heres a good site to check up on rates etc....not sure how uptodate they are,ICS defo isnt uptodate.

[broken link removed]
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It's not up to date - and the NIB tracker figures are wrong (but maybe you wouldn't expect a broker to show their lower rates). Also Halifax are not included.
 
Re: What mortgage rate should I go for?!!

irishlinks said:
It's not up to date - and the NIB tracker figures are wrong (but maybe you wouldn't expect a broker to show their lower rates). Also Halifax are not included.
Click to expand...

I wudnt say any of the banks rates on this are lower in reality.
 
Re: What mortgage rate should I go for?!!

Kopkidda - The site you mentioned shows NIB lowest tracker rate as being 5.25 - when in reality their lowest tracker is still ecb plus 0.5 (was 4.5% ). Since it looks like most rates haven't been updated on that site since the ecb rise - the NIB rate shown is 0.75% too high.
Like I said - i would be surprised if a broker site showed the true NIB rates - it would just lose them potential business because NIB don't use brokers.
 
Re: What mortgage rate should I go for?!!

Answering the Original posters's question - I agree with Clubman - the tracker rate you mention would probably be better that the short term fix. The ecb rate would need to rise another 0.5% in 2 years before the fixed rate becomes cheaper . Also the rate after the 2 years may not be guaranteed - check if it is.
 
Re: What mortgage rate should I go for?!!

Errismore said:
Unfortunately I am coming to the end of a 4.5% interest rate. Have now been offered the following by my lender : a 2 year fixed @ 6.1%, a 3 yr fixed @ 6.2%, a 5 yr fixed @6.27% or a tracker @ 6.5%.
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If you need to fix then fix for the shortest possible period of time. Otherwise go tracker.
Due to present financial circumstances will have to stick with current lender.
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Why?
 
Hey

I have just got mortgage apporval with AIB for a 3 year fixed term @ 5.45%.
IIB were offering 6.1 and a third were offering 6.25. got this through my mortgage broker
 
Hi Willymac,

Slightly off topic I know, but am wondering why your taking out a morgage at this time when there's a good chance you will get the house cheaper this time next year.
Im just wondering as I am in the market for a house at the moment but would not buy in a falling market.

Rgds
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Errismore, we are in a similar situation to you as in we are just out of a fixed rate of 4.25% and our circumstances financially are alot different to what they were when we got the mortgage, i no longer work am a stay at home mam so only one income now and also can't get a little part time job to help as i am expecting #3 in 2 months so can't switch as we would only qualify for mortgage of 220,000 when current mortgage is for 246,000.

My question is if you can't switch and your bank won't help as in they won't even offer us a fixed rate right now because of the economy so where do we turn what do we do??
 
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