I am currently with AIB, on a variable rate of 2.75%. I am in the middle of switching to KBC, and i am either going to go with a 1 year fixed rate of 2.5% or a 5 year fixed rate of 2.6%.
Now the general consensus out there seems to be that the ECB will raise rates towards the end of next year. With that in mind, if i go with the 1 year fix now, will i have enough time to get a good 5 year fixed rate next year before rates start increasing? Or will i have missed the boat?
I am hoping that rates might fall further this year and next, so if i fix for 5 years now, I won't be able to gain from this. Wheras with the 1 year fix i might.
So my question is should i fix now for the certainty of a lowish rate of 2.6% for 5 years, or take the 1 year 2.5% fixed rate now, and hope that by next September, the 5 year fixed rate will be lower than it is now??
Now the general consensus out there seems to be that the ECB will raise rates towards the end of next year. With that in mind, if i go with the 1 year fix now, will i have enough time to get a good 5 year fixed rate next year before rates start increasing? Or will i have missed the boat?
I am hoping that rates might fall further this year and next, so if i fix for 5 years now, I won't be able to gain from this. Wheras with the 1 year fix i might.
So my question is should i fix now for the certainty of a lowish rate of 2.6% for 5 years, or take the 1 year 2.5% fixed rate now, and hope that by next September, the 5 year fixed rate will be lower than it is now??