To fix or not to fix that is the question

K

kopkidda

Registered User
Messages
158
Apologies if asked elsewhere in the forum but I'm either blind or it's not there.

Is now the time to switch from AIB variable rate to long term fix?

Hear a lot of stories of inflation and impending interest rates hikes in media, is it all to be taken with a pinch of salt, inflation definitely happening but conflicting views as always on interest rate hikes.

The variable rate is 3.15% with AIB and can get a five year fixed for LTV <50% for 2.35%, don't qualify for green mortgage of 2.10% because of BER
 
kopkidda said:
The variable rate is 3.15% with AIB and can get a five year fixed for LTV <50% for 2.35%, don't qualify for green mortgage of 2.10% because of BER
Click to expand...
Fixing depends on your circumstances. If your mortgage is 30% of net income then a 100bp increase in rates will hurt a bit, and 200bps will hurt a lot.

Personally I think we are at a point where retail mortgage rates are going to start rising very soon in line with what wholesale rates have been doing. Avant started already last week. I fixed for three years with my provider in January, with hindsight I probably should have fixed for five years. In your circumstances I doubt you will have regrets fixing for five years right now.
 
NoRegretsCoyote said:
Fixing depends on your circumstances. If your mortgage is 30% of net income then a 100bp increase in rates will hurt a bit, and 200bps will hurt a lot.

Personally I think we are at a point where retail mortgage rates are going to start rising very soon in line with what wholesale rates have been doing. Avant started already last week. I fixed for three years with my provider in January, with hindsight I probably should have fixed for five years. In your circumstances I doubt you will have regrets fixing for five years right now.
Click to expand...
Thanks for reply, ye I'd agree with your sentiments ,certainty in times of uncertainty is a big factor.
 
NoRegretsCoyote said:
I fixed for three years with my provider in January, with hindsight I probably should have fixed for five years.
Click to expand...
You probably realise that you could break and refix for a longer period with your current lender and there is unlikely to be a break fee. (If your lender is Avant, they might not allow this.)
 
Have a tracker mortgage 9 years left. Should we opt for a green fixed mortgage or wait? Could absorb 2/300 euro extra monthly if we thought it wasn’t going to last forever
 
You must log in or register to reply here.
Back
Top