I’m just throwing this out there because while i do not fully understand how the money markets work, there are plenty here who do.
What I propose is that those people on trackers negotiate a fixed rate (3.5 to 4%) for the duration of the mortgage. We all know interest rates are not going to stay at current levels and banks are currently losing money on trackers. This puts holders in an excellent negotiating position. Is this feasible,
It does indeed help you …but only with your own bank. Best bet is around 4.5% though .
Most Irish banks do not do 10 year fixed never mind 20 year fixed so a lot of haggling may be required.
Agreed, but if something is loss making and there is an opportunity to correct/reduce loss, while at the same time give mortgage holders peace of mind of a fixed mortgage payment for life at record lows - very tempting for both the bank and mortgage holder.
When the dust settles on this fiasco, I suspect interest rates will never be this low again. There will be pressure to to keep them at or above historic norms to avoid a repeat occurrence, especially when interest rates are dictated by EU
Interest rates will stay low until Germany/France decide they want them higher - however they will not rise too high as again Germany/France will decide it is impeeding their growth. People currently on trackers are in a good position and most of them will not suffer any more than variable rate mortgage holders if rates rise. You can get a 5 year fixed loan from AIB for about 4% and you will likely do well as rates will tend higher. At the same time this recession could last another 5 years so you may lose out. The only upside of fixed rates is that you know what your payments are for 5 years.
I know that , however the bank must pay some premium to get you to bugger off the tracker, this means they must give you a longer term at 5 year rates , say 10 or even 15 .
That way everybody wins and nobody is unhappy 