What interest rate option to go for?

[Moneypit]

Hi, we're in the process of trading up and therefore getting a new mortgage more than likely with PTSB. We're borrowing €260k over 28 years, should we:-

1. Get the whole amount on a tracker rate - discounted rate for 2 years at 3.99%?
or
2. Do a split - get 50% on their 2 year fixed rate of 4.54% and the other 50% on their tracker at 3.99%?
or
3. Do something else entirely? i.e. they've given me a rate of 1yr discounted tracker at 3.49%

Sorry if this is very obvious, had a baby a few months ago and due to 'nappy brain' am finding it hard to get my head around stuff like this.

Thanks

 

[bacchus]

I do not think anybody can predict the future of interest rates and therefore answer your query..

But i can tell you that I opted for your option 2 (50% fixed for 5 years and 50%variable - No tracker at the time) in late 90s and it ended up costing me more money as the rates kept going down...but it bought me security and piece of mind as i could afford repayment shall the rate had gone up to 12%... and that's where the rates were coming from at the time..