Just finished our fixed term for year at 4.99% with permo.
They've offered us these options
Tracker Variable Rate (ECB + 3.25%) : 4.25%
LTV Variable Rate: 4.15%
2 Year Fixed: 5.25%
5 Year Fixed: 5.75%
7 Year Fixed: 6.1%
10 Year Fixed: 6.1%
On paper it would seem to me that the tracker would be the best option of the variable rates in the medium term anyway since it would avoid permo deciding to put their rates up outside the ECB. 7 and 10 years are too long and the rates are just too high.
With the fixed rates, I guess the call then would be will the ECB raise rates 1% over the next 2 years, 1.5% over 5 years? I guess even if they do we'd still be saving money as the rates rise to meet these figures.
Opinions?
They've offered us these options
Tracker Variable Rate (ECB + 3.25%) : 4.25%
LTV Variable Rate: 4.15%
2 Year Fixed: 5.25%
5 Year Fixed: 5.75%
7 Year Fixed: 6.1%
10 Year Fixed: 6.1%
On paper it would seem to me that the tracker would be the best option of the variable rates in the medium term anyway since it would avoid permo deciding to put their rates up outside the ECB. 7 and 10 years are too long and the rates are just too high.
With the fixed rates, I guess the call then would be will the ECB raise rates 1% over the next 2 years, 1.5% over 5 years? I guess even if they do we'd still be saving money as the rates rise to meet these figures.
Opinions?