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I am on a variable rate of 4.7% on a repayment mortgage and wonder if I can get a better deal by getting a fixed rate. I feel that the rate is quite high compared to those on trackers and am not sure what the best thing to do are. The fixed rates are also high but if interest rates start creeping up in the next five years then it might be good. I’m just looking to sound people out who know the market better than I do.
Deirdre P, Dublin
Dear Deirdre,
Fixed rates are generally coming in at between 3.5% and 5.1% in the market. And with two more interest rate cuts expected within the next six months, it may not seem an attractive time to switch from variable to fixed, especially as the banks are under pressure to pass the rate cuts on to their customers.
A number of factors apply to the rate you will be offered – the ratio of the loan to  the value of your home – LTV and whether you are an existing or a new customer of the bank. New customers generally get preferential rates because the bank is trying to buy your new and long term custom.
Bank of Ireland, for example, is offering new customers fixed term rates of 4.4% and 4.8% on three and five year fixed terms. Existing customers are being offered rates of 4.5% and 5.11% for the same period – all loan to value rates apply.
Its variable rates look a lot more attractive – all under 3.9% depending on the LTV.
Frank Conway, personal debt adviser at www.moneycoach.ie, believes it is a good time to fix. “The market is so volatile at the moment, we don’t know what is going to happen. For security and in terms of managing your finances, it may be a good time to fix.â€
Lisa
RTE Money
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I have just retired and have 30,000 euro to invest. I am looking for the best interest savings rate up to a period of between 1 to 5 years. I would be grateful if you could advise on best return on my lump sum.. I look forward to hearing from you.
Bernadette
Dear Bernadette,
I suppose the first question you have to answer is – where do you envisage investing? Do you want to put your money on deposit in a bank or do you want to make some kind of investment in a pension, shares, or some other financial vehicle.
For this, you should seek some professional advice.
But before that you should have a look at the type of rates you get on deposit.
The National Consumer Agency runs an excellent comparison site and here’s the link to the section on lump sum investments. You will see you can get more than three per cent interest rate if you agree to lock away your cash for a year or two.
Opting for an ordinary savings account generally won’t be very profitable, but there are some great deals out there as you can see from this section on the National Consumer Agency comparison site on regular savings.
I hope that’s of help.
Lisa, RTE Money
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Q. How long can a credit card company charge me for a cash advance? I normally never use my credit card for cash because I know they charge daily but I was caught short recently and the only card that would work was my credit card. I withdrew €500 which I have since paid back. My problem is I have an outstanding balance of around €2,000 on my card and want to make sure I’m not paying for the cash advance.
Linda, Dublin 14
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Q. Where’s the best place to put savings these days? I see some banks are offering 4% but there must be a catch.
I have around €20,000 in my current account which I need to withdraw again in November when the tax man calls.
Laura, Cork Continue reading
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Got a money problem? Email money@rte.ie and we’ll got answers from the experts
Q. We have four rental properties in addition to our family home and are facing increased mortgage payments of up to €2,100 a month because Permanent TSB want to change us from interest only tracker to capital repayments. Continue reading
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