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Interest rates

Posted by kirstya - Created: 16 years ago
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4 replies (Showing replies: 1 to 4)

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Posted by Carolebay-180697 - 16 years ago

Hi There

With some lenders a variable rate mortgage you be changed to a fixed rate without any financial penalties. Not quite the same when you opt from fixed rate to variable.

Also, bear in mind that when you opt for a fixed rate mortgage, the lender has to forward buy these funds and the interest rate will be higher than the variable rate you are on at the moment (although of course you will know exactly what your monthly payments will be and for how long).      But the repayments may take you beyond the 33% of monthly income limit

The lending institutions understand in great depth of what they are offering and do not usually make a mistake when valuing the profit they should make.

Any change to a mortgage should be very carefully investigated, backed up by detailed quotations and statements from your lender, and, if you are approaching a new lender compare their charges too.

Kind Regards

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Posted by Zeynep-183200 - 16 years ago

No problem. Good luck :-)


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Posted by kirstya - 16 years ago

Thankyou very much for the weblink and also your advice. mmmm something to think about!!


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Posted by Zeynep-183200 - 16 years ago

Eurozone countries' base interest rates are regulated centrally, by the European Central Bank (ECB), which sets the repo rate.

You can see the current interest rates at their website:


... where there is also a link that says "click here for past interest rates".

Basically, interest rates are at the lowest level they have been for quite some time, and they are not expected to increase in the Eurozone for at least another 4-6 months. In the recent announcements of Germany, and Holland, there is a small but significant growth for third quarter of this year, which effectively ends recession in both countries. France also announced a pretty good GDP growth. Still, ECB will probably wait for about six months before increasing Eurozone interest rates.

If I may also put in a word of advice - In your place, I would look into changing my variable rate mortgage for a fixed one (i.e. refinancing) over the next couple of months, unless your mortgage period ends in a year or so. UK and Australia already raised interes rates this month, and it is only a matter of time before Europe follows.