Fixed rate v variable

loukkcat

Registered User
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2 year fixed rate of 2.7% is up at the end of this month.

So, they (AIB) are offering me variable rate of 3.25%, which will mean basically paying about €50 more a month than I currently am.

Or 3 year fixed rate of 4.88%, which will mean an extra €350 a month or thereabouts.

What I'm thinking is to go with variable, but make sure I put an extra €300 into my mortgage account every month, so that I have that as a cushion if rates rise.

Does this make sense? Or would I be better going fixed?

I am single, female, early 30s, job is secure. I currently have one lodger but am going to get in a second to make up this extra €350.

Thanks
 
Yes, it makes sense especially if you need an extra lodger to make up the extra €300 you would need were you to fix.

Which are you suggesting? Not sure from your post? Thanks though.

I don't need the extra lodger, but think either way it would be nice to have the cushion, without having to change my current standard of living. I could just save €350 less a month than I currently am (€500-1000 depending on the month), but what would be the point in that when I have the room going spare?
 
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