Change from Variable to Fixed Rate?

Hi There,


Myself and my boyfriend (both FTB) took out a variable mortgage in December of €164,680 (30 years). The rate at the moment is 2.7% and we're repaying 670 a month (after TRS). With the way rates look set to increase we did a bit of research and found;

• If we were to go for a 3 year fixed the rate would be 3% and the repayments would be 695 (after TRS).
  [*]or if we were to go with 5 years it would be a rate of 3.4% and the repayments would be 729 (after TRS).

Does anyone have any advice on whether you think we should fix or not? With all the talk of interest rates going back up we're just worried we'll miss an opportunity to fix at a decent rate.

Any advise would be appreciated!
Thanks,
Shelley

Where are you seeing the quoted 3 and 5 year fixed rates?


www.moneybackmortgages.ie

NorfBank said:

Where are you seeing the quoted 3 and 5 year fixed rates?


[broken link removed]

Click to expand...

Hi NorfBank,

We got them from this site:
[broken link removed]

We're with ICS.

Thanks,
Shelley

Ah right, you're using the APR, when looking at fixed rate you should use the nominal or initial rate so the best 3 year fixed is 3.19%, best 5 is 3.86%.

If you are thinking of fixing to time the markets and save money then don't - nobody knows where interest rates are going to go for certain. If you might find yourself overstretched due to interest rate increases then it would be wise to consider fixing.