Variable or Fixed Rate - which to choose ?
Just by way of update on our query regarding Variable Rate v Fixed Rate mortgage.
We are mortgage approved and propose getting a mortgage of €75k with AIB over 12 years . The repayments are as follows:
Variable - €674.64 pm - 4.49%
Fixed 2 years - €676.86 pm - 4.55%
Accepting the views expressed earlier in this thread by posters that banks are always the winners with the Fixed Rate Mortgages, the possibility of fixing for 2 years for an additional €2.22 per month for 2 years appears attractive , to us at any rate , or are we missing something ?? We understand that by going Fixed Rate, we will not be able to increase repayments or pay off on the mortgage for the fixed period but, from what we read, some predictions are that mortgage rates will rise over the next year or so ??
Any views on the above would be welcome .
Also, will the bank go with which ever option we choose, Fixed or Variable , as so far they have only mentioned variable rate in repayment options/figures supplied.
Many thanks !
Edit - any comments on Fixed v Variable in the above scenario ??
Advice appreciated as we are almost at the point of going sale agreed and would welcome views as to a 2 year fixed rate versus variable rate , given the .06% difference between the two on a small mortgage ?
Thanks again !
Edit: offer accepted for property as outlined. Issue for us now is Variable or Fix for 2 years on the mortgage of €75k- 0.06% difference on mortgage - advice / comment please ???
Thanks again !