Fixed or variable?

M

Marcia

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My EBS fixed 3 year mortgage expires end March - current variable rate seems to be a bit cheaper than new fixed rates (3.7% as opposed to 3.15%). Don't know if it's worth going variable - the difference per month will only be €15 - €20 a month and that's if it never fluctuates which obviously it will. Is it worth losing the security of the predictable fixed amount every month? I'e never done variable before.
 
3.7% versus 3.15% given those options I'd choose door number 3 and switch to a much lower rate from a different bank, either fixed or variable. What's your outstanding balance, term remaining and max amount you are willing to pay?
 
Marcia said:
current variable rate seems to be a bit cheaper than new fixed rates
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I think you have this bit backwards. EBS fixed rates are cheaper than variable.

As said above though, you might get better rates elsewhere.
 
New fixed rate is 3.15%, the variable they're offering me is 3.7%, the fixed I'm currently on is 3.8%

I've another €217,000 left to pay. I'm not switching to another bank, too much hassle and no guarantee rates wont go up just the same, then more switching.
 
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Marcia said:
I've another €217,000 left to pay. I'm not switching to another bank, too much hassle and no guarantee rates wont go up just the same, then more switching.
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Well, if you switch to a fixed rate there IS a guarantee. See excellent chart here https://www.askaboutmoney.com/threads/kbc-rate-cuts.207624/. You haven't said what your LTV is so cant tell which rate is for you.

I hear ya on the hassle. I posted the same about 4 months ago. Since then I have switched from EBS to AIB and am enjoying my free E50 per month due to lower rate. Not switching due to perceived hassle is a why rates remain high. Not switching is literally saying "I don't want free money".
 
You should be trying to get the lowest rate you can. So just to be clear in ebs the fixed rate is a much better option than the variable rate for you. Particularly when variable rates will likely rise in the next few years which will mean paying even more.
However ebs fixed rate is a lot higher still than other banks such as ulster bank so you should consider moving.
I can see no reason with a substantial mortgage remaining why you would consider ebs variable
 
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