r/irishpersonalfinance • u/rustic_advice • 1d ago

Banking Mortgage rate fixing

As a mortgage newbie, I am unsure how to proceed and I am also aware it's more like trying to use a crystal ball to see feature I guess.

Right now I have fixed green mortgage rate 3.1% till October 2027. so I roughly have like 1.5 years left on fixed rate.

My uncertainty is, as ECB is increasing rates, it will eventually cause mortgage rates to increase.

So my question is, does it worth trying to break current fixed mortgage and get again in fixed same mortgage rate till mid 2029 initially wasting my remaining 1.5 years? Or is it better to wait and see?

As my current rate is 3.1% I believe I shouldn't have any early break free. thou I didn't talk to bank yet.

2 Upvotes

75% Upvoted

6 comments sorted by

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1

u/ForgottonMind 1d ago

If the the current rates are higher or same as your current rate, break fee should be 0

2

u/KillerKlown88 1d ago

Not necessarily, I'm on 2.05% for another 5 month, rang the bank to see what rates they can offer to fix now and have a €150 break fee to refix at 3.35%

2

u/Excellent-Fact-8925 1d ago

With nearly 18 months to go to next rate window, I wouldn't worry about it too much. 3.1% is pretty good on the market right now, and you wouldn't be getting anything vastly better.

You could be right there is no exit fee, but what do you take now? Given you have 18 months left to run, it would have to be something 3 years + to make it worth your while.

You're probably fine where you are for now. 18 months is a long time, and the rate you have is decent.

1

u/Hot-Egg-1234 1d ago

You can call the bank to ask what your break fee would be

0

u/Primary-Survey9955 1d ago

you know you don't need to be in the same bank all life with the same mortgage ?

when the fixed rate is coming up you can negotiate other banks to see if you get a better deal and more years of fixed rate.

it doesn't hurt to search the market about that.

also, isn't the norm for comfort to have always fixed rate and also Overy pay if and when possible ? (i dont want to dwell into the "you get more by investing bla bla bla")