UB - Move from Variable to Fixed?

[1stimebuyer]

Hello,

I see that the advice from Brendan now is to fix. I've been considering moving from an attractive variable rate to fixed for a while now and want to run my case by you.

I'm on an UB viariable that tracks the SVR at -1.2%, making my rate 3.1%.
UB have a fixed product that I am eligable for that works out at 2.6% if I fix for 4 years or 2.99% if I fix for 5.

I'm leaning towards fixing for 4 years but somewhere in the back of my mind I feel like I might rue switching from my variable product in future.

The (probably impossible) questions I have are:

1 - If rates rise does the SVR change immediately or do the other products change first (special rates, fixed rates etc)
2 - Is there any chance that banks are forced to reduce their SVR in the future considering their rates are disporoportionate to their cost of lending

 

[michaelm]

If you're unlikely to want to move house any time soon then the 2.6% looks like a great deal, and an easy pick over the 5 year deal. I'd jump at it if it was me.