My thinking is as follows:
Irish Independent said on Tuesday that Permanent TSB will likely increase it's variable rate very soon despite ECB rate remaining unchanged.
http://www.independent.ie/business/...hike-in-variable-home-loan-rates-1831796.html
If they do, it will be first time ever an Irish owned bank has brought rates up without a corresponding ECB rate increase. AIB & BOI, previously too scared of a public backlash, would then follow suit after TSB take the heat & bad press for being 1st to do so.
So rates could start going up for those on variables in weeks, even though ECB will likely stay at 1% til early next year.
So let's look at what fixed rates are out there.
Most banks offer a 5 year rate; a few also offer 10 years.
Best I found was AIB for both.
AIB's current variable rate, LTV >80%, 35 year mortgage, is 2.68%
A 5 year fixed, LTV >80%, 35 year mortgage, is only 2.77% APR
A 10 year fixed, LTV >80%, 20 year mortgage, is 4.21% APR
So by switching from a variable (2.68%) to a 5 year fixed (2.77%) you'd only lose out on .09%!!
Seems a brilliant offer. ECB rates will start going up & up in 12-18 months time, so you'd be laughing with the fixed rate if you get it now.
Thoughts?
Irish Independent said on Tuesday that Permanent TSB will likely increase it's variable rate very soon despite ECB rate remaining unchanged.
http://www.independent.ie/business/...hike-in-variable-home-loan-rates-1831796.html
If they do, it will be first time ever an Irish owned bank has brought rates up without a corresponding ECB rate increase. AIB & BOI, previously too scared of a public backlash, would then follow suit after TSB take the heat & bad press for being 1st to do so.
So rates could start going up for those on variables in weeks, even though ECB will likely stay at 1% til early next year.
So let's look at what fixed rates are out there.
Most banks offer a 5 year rate; a few also offer 10 years.
Best I found was AIB for both.
AIB's current variable rate, LTV >80%, 35 year mortgage, is 2.68%
A 5 year fixed, LTV >80%, 35 year mortgage, is only 2.77% APR
A 10 year fixed, LTV >80%, 20 year mortgage, is 4.21% APR
So by switching from a variable (2.68%) to a 5 year fixed (2.77%) you'd only lose out on .09%!!
Seems a brilliant offer. ECB rates will start going up & up in 12-18 months time, so you'd be laughing with the fixed rate if you get it now.
Thoughts?