Jump to content

Are you fixing your mortgage?


  • Please log in to reply
17 replies to this topic

#1 *JAC*

Posted 07 January 2013 - 07:54 PM

Hi!

Our mortgage is currently under fixed terms, which expires in March.  It will automatically go to Standard Variable.

I'm thinking about fixing it again as the current interest rate is 5.54% - I really can't see the rates reducing that much more in the near future.

Should I fix or leave it standard variable?

Thanks!

#2 KT1978

Posted 07 January 2013 - 08:54 PM

I'd stay on variable and pay off as much extra as I could.

I think rates may still go down but unlikely to go up quickly. Paying extra is better than a fixed rate IMO.

#3 GreenCabbage

Posted 07 January 2013 - 10:26 PM

I considered fixing half of mine but left it all variable. Already gone down twice since Nov lol.

Read some where that it works out the same in the long run and only been a couple times in past ten yrs that fixed was better. As PP said just try to put in extra.

#4 Bluenomi

Posted 08 January 2013 - 09:04 AM

We left ours unfixed when it came off fixed. Since then the interest rate has dropped so much I'm glad we did.

Also the fix rate is usually higher than the variable.

#5 bondgal

Posted 08 January 2013 - 09:10 AM

You could consider hedging your bets and fix some and keep the remainder on variable. That way you can pay extra off the variable if possible, but feel confident that some is locked in at a rate that won't change. I'm not sure of the costs involved in this approach though.

#6 HRH Countrymel

Posted 08 January 2013 - 09:13 AM

When we got ours the lady at the bank quietly suggested to leave it on variable... 'for the time being'.

I guess it depends how tight your budget is.  We are paying over the required payments so if things do change dramatically we have some wiggle room.

If things were very tight I'd probably insist we fixed at least part of it so that we weren't caught out by an unexpected jump.

My parents had fixed theirs prior to things going crazy in the 1980s - I can clearly remember Mum having to constantly remind Dad when he would start to freak out when the news would report rates going to 17%, 18% etc. that "Don't worry dear OURS is fixed rate!"

That left an impression on me.

#7 Kalota

Posted 08 January 2013 - 09:18 AM

QUOTE (KT1978 @ 07/01/2013, 09:54 PM) <{POST_SNAPBACK}>
I'd stay on variable and pay off as much extra as I could.

I think rates may still go down but unlikely to go up quickly. Paying extra is better than a fixed rate IMO.


Agree with this original.gif We are on standard variable and not planning on fixing our rate. We are paying off as much extra as we can though. Paying off more than your scheduled repayments is the best way to keep interest down, much more so than fixing your rate.

We are putting every single little extra penny into our mortgage to keep the interest down. We are able to redraw though, so if there is emergency and we need that money we are able to take it out again.

#8 julzely

Posted 08 January 2013 - 09:24 AM

I was told the only reason to fix a homeloan is if can't afford to pay of any extra, otherwise you are better to go variable and just pay off as much as you can.

A good indication of which direction the banks expect interest rate to go in is their fixed interest rate v.s their variable.  If the fixed one is lower then the variable they expect to see reductions, if the fixed is higher then the variable they expect interest rates to go up.



#9 daisydo

Posted 08 January 2013 - 09:28 AM

QUOTE (julzely @ 08/01/2013, 10:24 AM) <{POST_SNAPBACK}>
A good indication of which direction the banks expect interest rate to go in is their fixed interest rate v.s their variable.  If the fixed one is lower then the variable they expect to see reductions, if the fixed is higher then the variable they expect interest rates to go up.

This is what I have been told also.

#10 Silver Girl

Posted 08 January 2013 - 01:36 PM


QUOTE (countrymel @ 08/01/2013, 10:13 AM) <{POST_SNAPBACK}>
My parents had fixed theirs prior to things going crazy in the 1980s - I can clearly remember Mum having to constantly remind Dad when he would start to freak out when the news would report rates going to 17%, 18% etc. that "Don't worry dear OURS is fixed rate!"

That left an impression on me.


Your parents timed that well - it's fantastic it worked in their favour  original.gif

#11 jkate_

Posted 08 January 2013 - 04:03 PM

We will be definitely keeping ours variable, we pay close to double the minimum and are on track to have our 30 year loan payed off in 8 years.

DP quite enjoys tracking the additional payments and how far ahead we are in the loan.

#12 HRH Countrymel

Posted 08 January 2013 - 04:07 PM

QUOTE (Silver Girl @ 08/01/2013, 02:36 PM) <{POST_SNAPBACK}>
Your parents timed that well - it's fantastic it worked in their favour  original.gif


Yep... that was my Mum, a brilliant financial manager!  Irony being of course that it was Dad who was the accountant!

He could be responsible for billions of dollars of other peoples money (worked in the mining industry) but totally overwhelmed with his own!

#13 PrincessPeach

Posted 08 January 2013 - 04:11 PM

QUOTE (julzely @ 08/01/2013, 09:24 AM) <{POST_SNAPBACK}>
I was told the only reason to fix a homeloan is if can't afford to pay of any extra, otherwise you are better to go variable and just pay off as much as you can.

A good indication of which direction the banks expect interest rate to go in is their fixed interest rate v.s their variable.  If the fixed one is lower then the variable they expect to see reductions, if the fixed is higher then the variable they expect interest rates to go up.


This is what I have found out as well.

We have ours as variable for the main reason we can pay extra off it & reduce the interest charged. If it was fixed, we could still make the extra repayments, but it wouldn't reduce the interest charged, which is not what i want. So at the moment we are throwing DH's wage to it & living off mine. It works well & we should be fully paid off in a few more years - if we don't buy another house in the meantime.

#14 whale-woman

Posted 08 January 2013 - 04:15 PM

QUOTE (julzely @ 08/01/2013, 10:24 AM) <{POST_SNAPBACK}>
I was told the only reason to fix a homeloan is if can't afford to pay of any extra, otherwise you are better to go variable and just pay off as much as you can.


Not necessarily so. We had  a fixed mortgage when we lived overseas. It was the standard way of doing things there and was great. We were lucky and for most of the time had interest rates on deposits higher than the rate we were paying on the mortgage  biggrin.gif  We had actually organised a facility to make extra payments but there was never an incentive to do so.

#15 belinda1976

Posted 08 January 2013 - 04:16 PM

Our fixed rates end on 25th of this month and we are re-fixing it again.  We have 2 home loan one is fixed the other variable.

#16 Onyx

Posted 08 January 2013 - 04:18 PM

We will stay variable for now.

I see rates reducing a little more before staying put for awhile or increasing.

#17 SummerStar

Posted 09 January 2013 - 06:26 AM

QUOTE (Bluenomi @ 08/01/2013, 10:04 AM) <{POST_SNAPBACK}>
We left ours unfixed when it came off fixed. Since then the interest rate has dropped so much I'm glad we did.

Also the fix rate is usually higher than the variable.


I have noticed with our bank, while the rates are going down, the fixed rate is less than the variable. When they are creeping up, it's more.
I am considering fixing ours soon. I want to catch it before they go up.
Partly because we will have a set amount we pay, we will know how much we will be paying for however many years which for us would beneficial. I've kind of been holding out for it to get as low as it can. I'd be ok about it going slightly lower when we fix it.

Edited by SummerStar, 09 January 2013 - 06:26 AM.


#18 Pinkk_Sprinkkles

Posted 10 January 2013 - 03:55 PM

I will be leaving mine as Variable.

I went onto a Mortgage Calculator and worked out that I could meet the minnimum repayments at 10% interest rates so figured variable was the way to go.

It might be a good idea to do something similar - if you can afford the repayments if rates go up variable is probably a good option original.gif

Good Luck




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

11 things that will happen when you're breastfeeding

After having three children and various degrees of success feeding them all, there's one thing I can tell you: virtually nothing will go as planned.

Surgery for baby born with a tail

A baby born with a tail has had it removed after doctors feared the birth defect might cause long term damage to his lower body.

When 'skin to skin' becomes a family affair

An adorable photo of a little boy and his dad enjoying skin to skin contact with newborn twins is melting hearts everywhere.

35 hilariously weird 'top tips'

Who would have thunk it? We never knew there were so many uses for feminine hygiene products. 

Pregnancy skin woes: acne, dry skin, itchy skin

Here are some of the most common skin complaints in pregnancy and how to tackle them, face on.

Watch this fun dance class for babywearing dads

Is there anything sexier than a babywearing dad?

Parents, this is how to cut grapes to avoid choking

One mum has learnt a harrowing lesson about the best way to cut grapes to make it safe for toddlers and little kids to eat.

When your kids have totally different temperaments

Sometimes it has felt like whiplash parenting. She perches watchfully while I vacuum; he tries to climb on and go for a ride.

How do our stress levels influence our baby?

Since having my second baby a number of people have commented on how placid, content and settled he is and, similarly, many have commented on how this is a reflection of how I am with him.

Separation anxiety isn't just for kids

Despite its prevalence, most doctors tend to be reluctant to diagnose adult patients with separation anxiety.

A charm bracelet, a boy, and my beliefs questioned

I was staring at the face of my son, realising that my once steadfast decision to be open minded was quickly unravelling at the seams.

Why I'm so grateful for Hayden Panettiere's PND honesty

There are baby steps and giant leaps forward. But there are steps backwards, too. And, oh, how they can hurt your heart.

The heartbreaking story of little Moko

The mother of 3-year-old Moko Rangitoheriri said she should have picked up on the signs. {Warning: distressing content}

Kate Beckinsale and teen daughter recreate birth photo

Kate Beckinsale has recreated her daughter Lily's birth photo, 17 years after she was born.

The adult-size stroller you'll want to test drive

It's one of the biggest baby related purchases they will make, so it makes sense that parents-to-be get a chance to road test a stroller.

Pregnancy announcement shows the reality of IVF

It's a long way from baby booties or bump shots people have become accustomed to in social media pregnancy announcements.  

Soleil Moon Frye welcomes fourth baby

"Punky Brewster" is a mom again, for the fourth time. Soleil Moon Frye announced the birth of her baby boy, Story, on Instagram Wednesday.

Mum breastfeeds baby found abandoned on the street

A woman has been praised as a "beautiful mother" after breastfeeding a baby which had been abandoned at the side of a street. 

A birth with a difference: the 'natural caesarean'

We've shared stories of gentle caesareans before, but a new video shows a new option called a 'natural caesarean'.

Baby name inspiration by music genre

If you're all about the music, then you'll need a musical name for that baby. We've got all the lists for you by music genre.

Giving effective instructions to toddlers

One of the most common errors made by parents is in how they give instructions to their children.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

The babies who are one in 70 million

Bethani Webb was excited to find out she was pregnant, but the first time mum did not realise she was carrying four babies not one.

Cafe offers breastfeeding mums a free cup of tea

A Sydney cafe is offering breastfeeding mums free cups of tea in a bid to show support for the right of women to nurse their babies wherever they choose.

To snip or not to snip? When the decision is not clear cut

Jamie Oliver, who considered a vasectomy, is to be a father again. A fellow dad reflects on his own decision 11 years ago

Doctors stunned by rare twins born almost six weeks apart

To everyone's surprise, Kristen Miller "kept doing better each day", keeping her second baby safe.

Baby book ideas for modern parents

Before my son was born I was given a lovely baby book full of blank pages waiting to be filled with weights and heights and first words.

The adorable smile of a baby seeing his mum clearly for the first time

There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.

Mum tells how toddler 'nearly hung himself' in cot mishap

When Alison Johnson put her 18-month-old Caleb down for a nap, she had no reason to believe her son was in any danger.

Babies are still switched at birth? Yes, it can happen

All my panic and tears aside, my biggest question looking back is about the kind of security measures used in the maternity ward.

Doctors slammed for taking selfie with newborn

Everyone who visits a mum in hospital in the days following childbirth wants to get a photo with the new baby.

ergoPouch Twosie Sleepsuit for winter breastfeeding

Finally, there's a way to keep warm while breastfeeding through winter.

Health check: How long does sex 'normally' last?

What to do with this information? My advice would be to try not to think about it during the throes of passion.

When breastfeeding sucks: fixing common problems

From niplash to tight boobs, biting to milk supply issues, Pinky McKay looks at common breastfeeding issues and how to solve them.

10 things I've learnt in my first six months with twins

Six months on we're all still alive, and the more we get to know each other the easier the days become.

Mum's loving kiss leaves baby fighting for life

Kirsty Carrington thought nothing of giving her newborn son a kiss, little did she know it would leave the baby fighting for life.

When doing chores is your new 'me time'

After children, 'me time' looks a little different.

Get going: 14 travel strollers for families on the move

A stroller can make or break travelling with a baby or toddler. Here are 15 great single travel stroller options.

10 ways toddlers are terrific

It always pays to remind yourself of how terrific toddlers can be - they're little like this for such a short time

 

Vintage Toys

The toys of your childhood

Take a trip down memory lane with these vinage and retro toys that you may have had in your childhood or your parent's childhood.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.