Majority of FTBs now opting for fixed rate mortgages

[Sarenco]

Interesting article on the current mortgage market -

http://www.irishexaminer.com/lifest...ickle-through-to-mortgage-holders-451760.html

According to Central Bank statistics, 52% of FTBs opted for fixed-rate mortgages in the second half of 2016.

Interestingly, price competition now seems to be more pronounced on fixed-rate mortgages. For example, Ulster is now offering a three year fix @2.90% at LTVs up to 60%.

Are we starting to see a structural shift away from variable rates as the dominant type of mortgage product? IMO that would be a good thing from a financial stability perspective.

 

[Nordkapp]

Coming to the end of the low interest rate period with ECB quantitative easing to finish in 2019. Most fixed-rates would now be starting to increase I would say from now onwards. I agree from a financial stability perspective that is a good thing for borrowers but I recall being on a 5yr (4.9%) and 10 yr fixed (5.9%) that I would have been better riding the variable wave.
I am on that variable wave now but will be looking to pay down the capital before the rates rise here. On that topic, and given the rates here are almost double those in Europe, would lenders here raise rates to 6% if the ECB rate went to 3%? Is there projected ECB rate for the next 10 years that one could view? 10 years is all I need