Should I go for a Fixed or Variable Mortgage in Current Financial Markets

[Bodyguard1]

I was just looking for advice regarding my own Mortgage also, I have with Permanent TSB currently I am on a 3 Year Fixed Rate of 3:30 % which is due to expire on October 5th I have a mortgage balance of around €62,000 with 12 Years remaining, my current monthly repayment including life insurance is €595.00. The current value of the property is €250,000 - €275,000.

I only switched to Permanent TSB 3 Years ago following a disastrous period with Pepper and Irish Nationwide previously so I don't think switching again is an option.

They have sent me out a list of rates as follows;

Option Rate Monthly Repayment
Variable Rate 3.70 % € 557.52
2 Year Fixed 3.10 % € 539.31
3 Year Fixed 2.95 % € 534.81
5 Year Fixed 3.00 % € 536.31

The question is giving the current economic climate is it wise to go for a 3 Year Fixed Rate or will variable rates reduce.

Thanks in advance for any feedback.

 

[NoRegretsCoyote]

Don't try to second-guess markets.

How stable is your income? How big a share of your income is your mortgage payment?

If you are able to easily handle increase in interest rates then you can take advantage of shorter-term rates which are lower.

If you want peace of mind then pay a bit more to fix for five years. Just remember you will probably have to pay to break out of this if you want to.