Hi All,
I'm currently on a variable rate with my bank and I'm in the process of gathering information on switching. There are a number of options I'm considering but it looks like KBC is a good option with their fixed rates and €3000 cashback. The question I have is, how long should I fix for?
On the face of it, there's a lot of news about ECB raising their interest rates in the next 18 months and they can only go up. In addition, I've seen the changes to the way the banks now have to calculate the fees for breaking a fixed rate, so that might be option should I wish to move at some time during a fixed term. Therefore, the 10 year fixed @2.99% sounds like a good option. Am I wrong?
On the other hand, I've seen posts from Brendan B and others advising to fix for 1 or 2 years and see what options are available then. My fear is that ECB rates will already have started moving up by then and I will have lost out on the 'low rates', e.g. 2.99% fixed rate KBC is currently offering. I've also seen posts suggesting that banks here will continue to lower their interest rates as they're too high relative to the rates they can borrow from the ECB. A little confused to say the least.
Any advice on this would be great.
Thanks,
digweed
I'm currently on a variable rate with my bank and I'm in the process of gathering information on switching. There are a number of options I'm considering but it looks like KBC is a good option with their fixed rates and €3000 cashback. The question I have is, how long should I fix for?
On the face of it, there's a lot of news about ECB raising their interest rates in the next 18 months and they can only go up. In addition, I've seen the changes to the way the banks now have to calculate the fees for breaking a fixed rate, so that might be option should I wish to move at some time during a fixed term. Therefore, the 10 year fixed @2.99% sounds like a good option. Am I wrong?
On the other hand, I've seen posts from Brendan B and others advising to fix for 1 or 2 years and see what options are available then. My fear is that ECB rates will already have started moving up by then and I will have lost out on the 'low rates', e.g. 2.99% fixed rate KBC is currently offering. I've also seen posts suggesting that banks here will continue to lower their interest rates as they're too high relative to the rates they can borrow from the ECB. A little confused to say the least.
Any advice on this would be great.
Thanks,
digweed