KBC customers
The ECB rate is currently 1.25%. I will base my comments on an ECB rate of 2%
If you have a KBC tracker with a margin of 0.5% ("ECB + 0.5%"), then you will find yourself paying 2.5% .
I think that this is more attractive than KBC's fixed rates for people getting the 0.2% current account discount:
Update: Peemac has reported that KBC is, in effect, not allowing tracker customers to fix:
Just for anyone with a KBC tracker that had thoughts of fixing. Don't even bother calling them. They are only offering "standard fixed rates" (whatever these are) if you are on a tracker. These rates start at 3.9% I have just over 5 years left. Tracker 0.95, LTV about 25%, so thought I'd take...
www.askaboutmoney.com
Of course, the risk is that ECB rates could exceed 2%.
At the other end of the scale if you are on ECB + 1.5% (a margin of 1.5%), you will shortly be paying 3.5%
You should definitely not fix for the short term, e.g., 3 years. You will be scalped by Bank of Ireland after that.
It also depends on how much you have left on your mortgage and how long you have left on your mortgage and whether you might overpay it or clear it before the natural term. Or you might want to trade up.
If you only have 10 years left and €100k, I would probably fix for 5 years. Even if BOI scalps you for the last few years, you won't have a big balance.
You could fix for 10 years, but then you could face an break fee if you want to clear it early.
Brendan