Hi Folks,
In the past few years it has clearly been more favorable to opt for a variable rate mortgage as opposed to a fixed one. Variable rates, although high compared to continental values, have come down in the past year or two and appear to offer better value than fixed rates.
However, I am wondering if now might be the time to avail of "low" fixed rates as I suspect variable rates may soon start to rise again. for example:
- In Dec 2016 the German rate of inflation rose to 1.7% ([broken link removed])
- In the US we saw the Dow Jones hit 20,000 for the first time yesterday and we know that the UD Fed are keen on more interest rate increases.
Also, AIB's lowest variable rate is 3.1% but their lowest fixed rate is 3.5%. does this strike anyone else as strange?
The lowest fixed rate at BOI is 3.1% which seems like a good deal compared to AIB and especially if the chances of interest rate increases have increased.
I am actually in the process of switching from BOI (3.7% variable) to AIB (3.1% variable) but now I am suspicious that AIB are using their variable rate of 3.1% to pull in customers and if they increase variable rates in the the next year or so customers will have no option but to fix at a higher rate or switch mortgages.
Does anyone else feel that we may have bottomed out on variable interest rates in Ireland or does anyone have an opinion on the fact that the AIB fixed rates are significantly higher than their variable rates?
Thanks,
tea4one.
In the past few years it has clearly been more favorable to opt for a variable rate mortgage as opposed to a fixed one. Variable rates, although high compared to continental values, have come down in the past year or two and appear to offer better value than fixed rates.
However, I am wondering if now might be the time to avail of "low" fixed rates as I suspect variable rates may soon start to rise again. for example:
- In Dec 2016 the German rate of inflation rose to 1.7% ([broken link removed])
- In the US we saw the Dow Jones hit 20,000 for the first time yesterday and we know that the UD Fed are keen on more interest rate increases.
Also, AIB's lowest variable rate is 3.1% but their lowest fixed rate is 3.5%. does this strike anyone else as strange?
The lowest fixed rate at BOI is 3.1% which seems like a good deal compared to AIB and especially if the chances of interest rate increases have increased.
I am actually in the process of switching from BOI (3.7% variable) to AIB (3.1% variable) but now I am suspicious that AIB are using their variable rate of 3.1% to pull in customers and if they increase variable rates in the the next year or so customers will have no option but to fix at a higher rate or switch mortgages.
Does anyone else feel that we may have bottomed out on variable interest rates in Ireland or does anyone have an opinion on the fact that the AIB fixed rates are significantly higher than their variable rates?
Thanks,
tea4one.