Comments on: Should I fix my mortgage rate now? http://www.valueireland.com/2009/05/should-i-fix-my-mortgage-rate-now/ Better Purchasing Decisions Through Better Information Wed, 17 Mar 2010 00:17:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Colm http://www.valueireland.com/2009/05/should-i-fix-my-mortgage-rate-now/comment-page-1/#comment-1882 Colm Mon, 11 May 2009 10:47:54 +0000 http://www.valueireland.com/?p=2908#comment-1882 I wouldn't panic yet. You need to know what the signs are. Specifically Inflation in France and Germany. The ECB are hyper sensitive to inflation in France and Germany (they don't give a damn about the rest of the eurozone). At the first sign of inflation in these two countries they will put 0.25% onto the rate in one of the following two ECB monthly meeting. If the inflation rate is low then they will flag it in one meeting and put it on in the following meeting. If the rate is high then they will react straight away and put it up. Generally the inflation data will be out a couple of weeks by the time this happens. The problem will be reacting before the ECB. Therefore I would advise you contact a mortgage broker now and explain what you want to do. Get all your ducks lined up in terms of the forms and information banks will look for and then be ready to move. Some mortgage brokers won't want to know about this sort of a forward planning arrangement and will push you to fix immediately. Just walk away from them if they do. The good ones will know economics and will be already advising existing clients to get ready to fix. I wouldn’t panic yet. You need to know what the signs are. Specifically Inflation in France and Germany. The ECB are hyper sensitive to inflation in France and Germany (they don’t give a damn about the rest of the eurozone). At the first sign of inflation in these two countries they will put 0.25% onto the rate in one of the following two ECB monthly meeting. If the inflation rate is low then they will flag it in one meeting and put it on in the following meeting. If the rate is high then they will react straight away and put it up.

Generally the inflation data will be out a couple of weeks by the time this happens. The problem will be reacting before the ECB. Therefore I would advise you contact a mortgage broker now and explain what you want to do. Get all your ducks lined up in terms of the forms and information banks will look for and then be ready to move.

Some mortgage brokers won’t want to know about this sort of a forward planning arrangement and will push you to fix immediately. Just walk away from them if they do. The good ones will know economics and will be already advising existing clients to get ready to fix.

]]> By: Gerard http://www.valueireland.com/2009/05/should-i-fix-my-mortgage-rate-now/comment-page-1/#comment-1881 Gerard Mon, 11 May 2009 10:26:52 +0000 http://www.valueireland.com/?p=2908#comment-1881 You could also look at the option of fixing a percentage of your mortgage and leave the balance 'floating'. You could also look at the option of fixing a percentage of your mortgage and leave the balance ‘floating’.

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