If the rate variable rate remains the same for the next twelve months then it will need to increase by 1.1% for the remaining 12 months of the fixed rate for it to be close to a breakeven situation.
The difference between the variable rate and fixed rate on offer is 0.55%. If all stay the same and you opt for the variable then you will have gained 0.55% for the first twelve months.
For you to lose out, the variable rate for the following twelve months will need to be 1.1% higher. 0.55% to cancel the gain made in the first twelve months and 0.55% to cover the difference between the variable and fixed rates on offer.
Hope this makes sense.
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