Fixed or Variable Loan

[Lance Vance]

I have being approved for a car loan but I need some assistance in deciding if I should opt for a fixed rate of interest or a variable rate of interest. At current rates the variable loan is €1 cheaper per month. I hope to make extra loan repayments to lower the term of the loan and would aspire to settling the loan early. Any advice much appreciated.

 

[JonG]

If you're looking to close if off early I believe you want a variable as a fixed rate will cost you to close before the term is complete, but of course you have the risk of the interest increasing before you pay it off.