The ask Bandage about mortgages thread

1036

When you say the current pension “deductions”, i presume you mean the pension tax breaks by ploughing money into one - example at upper rate 40% put in 10k and real cost to you is 6k, the other 4k comes off your tax bill. Is this what you’re refereeing to by “deductions” or are you alluding to something else?

Great advice above from a few of ye - I max out on pension contributions each year so understand that is a better investment but think I will top up on this 5k penalty free allowance to pension too while the going’s good and I’m still on a fixed for another two years.

1037

Yes. You should be able to get the extra €4k out of your pension either tax free or at 20%. Unless you end up with a quite a large pot.

1038

I didn’t think anyone would ever really be disappointed to be paying down their debt early and I do myself…but it just may not be the absolute best use of your cash. There is enough of it going on tax so every avenue available to take advantage of tax rules is important

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1039

And inflation is making the relative value of the debt smaller

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1040

You’re presuming a bit that
1 the pension pot is a one way bet
2 the pension pot doesn’t become exposed to a taxation change moving forward
But basic maths would suggest pension indeed.
I doubt sub 3% mortgages will be available any longer as fixed rate deals run out.

1041

Are any of you guys regulated by CBI?

Seriously.

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1042

If any of these lads are chartered accountants and giving out pension and investment advice they could find themselves in very hot water.

1043

I pay the IOB a small sum of money annually to ensure I can give out free online financial advice on TFK.

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1044

Yes & Yes

1045

Current fixed rate up at the end of the year.

What’s the medium term play here? Variable rate or fixed rate? If fixed, for how long?

Assume the expectation is that rates will continue to rise for the foreseeable or are we likely to see a drop in 18 months to 2 years?

1046

I’d say we’re 18 months from interest rate cuts. Prob not muxh value in fixed at moment.

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1047

Fixed is the only game in town. Variable are all more expesnive. The length of time to fix for is the only question and whether it is worthwhile switching banks to get a better rate.

Interest rates is a guessing game, but I don’t think they can go much higher, but could stay where they are for a while until inflation comes down.

Also Irish mortgage rates are in general underneath ECB rates which is a bit mad, so there is still scope for rates to rise without any more interest rate increases.

Talk to the bank about a new valuation for your house, you might be able to move into a lower LTV rate which can give you lower mortgage rates.

Or they might have a green rate if your house has a reasonable BER rating

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1048

Correct on both of these. Drive down the % rate any way you can.

1049

BOI were offering commercial fixed rates at 3.7% for seven years v recently…AIB were 6.2% for same product :flushed:

1050

Similar story here, current fixed rate is up early in New Year.
Options offered to us by existing provider have a variable which is €60 a month cheaper than the best fixed rate offer. Variable rate is 3.8% and fixed is 4.75%
I had always just assumed we were going fixed again but a friend said go variable that rates can’t go much higher.
Im still thinking fixed??

1051

BOI have billuns and billuns on deposit.

They are still 3% less than AIB for corporate stuff. I’d say they are destroying AIB in the market.

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1052

EBS green fixed LTV <50% is 3 point 75 per cent.

< 80% is 3 point nine 5 percent.

Potential ECB rate reduction in the new year.

The yield curve is inverted so hum dinger of a recession on the way.

1053

For thicks like me what does that mean in simple terms?

1054

better explain that for the @Jayo76 @MountLeinster & @padjo’s of the world

1055

By that you mean?