1. Heard you loud and clear Karl.

    Do you know of any good rate calculators to show you the difference between what you currently pay vs. what you would pay if you switch to fixed?

  2. Philip

    Hi Karl,

    just one comment about those in serious negative equity fixing their rates now. Will the lender actually allow this? For example Permanent TSB have a note on their fixed rates saying “To avail of a fixed rate you must have a loan to value of 50% or less”. I would presume that those currently on fixed rates would be okay until their current rate period expires and then the bank would give them no option but to switch to a variable and those currently on a variable have no option but to stay where they are?

  3. Hi Philip,

    It would vary from lender to lender and be at their sole discretion, the issue might be more to do with arrears expectation because a person might need to break a fixed rate in order to sell (if they can’t pay their mortgage) and having people in negative equity on a fixed rate could make the process more expensive. on the other hand, if the person has good odds of servicing the loan and the negative equity is there but not an immediate threat they might make a call on it in the clients favour, sometimes the ‘rules’ are there to stop a sense of entitlement to certain products/rates but in practice it might be very different once an underwriter looks at it.

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