fixed at 5.23% or variable? please advise?

H

happy123

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please can someone give me good advise on whether i should opt for fixed for 5 yrs at 5.23% or variable with EBS, ill be signing mortgage papers soon and really dont know what to do. i have been through all the threads here but no specific one answers my question.
I dont have option of fixing it for a shorter term
Please advise....
 
someone posted a fixed v variable question yesterday.

I see it was your goodself.
 
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Its just like gambling, If you fix at 5.23 and the rates go up you could end up paying 5.5 upwards depending on the rate increase, the tracker is always cheaper, the reason no-one has given you an answer is that there is no answer, It depends on your circumstances, common theory is that the base ECB rates wont go above 4.5% in that case you would be probably paying around 5.25 or most likely more, If you want my opinion I would fix as there has been talk of the banks raising tracker rates regardless of the ECB rate changes as money becomes more difficult for them to borrow with the current credit squeeze.
 
danFTB said:
If you want my opinion I would fix as there has been talk of the banks raising tracker rates regardless of the ECB rate changes as money becomes more difficult for them to borrow with the current credit squeeze.
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banks can't raise tracker rates to exisiting customers. They track the ECB and put on a fixed margin They can only increase the margin on offer to new customers. They can raise standard variable rates though if thats what you mean
 
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Switch to the NIB ltv mortgage - best rates available depending on the value of your existing loan to the value of your house.

rates betwenn 4.49 and 4.89 approx
 
happy123 said:
please can someone give me good advise on whether i should opt for fixed for 5 yrs at 5.23% or variable with EBS, ill be signing mortgage papers soon and really dont know what to do. i have been through all the threads here but no specific one answers my question.
I dont have option of fixing it for a shorter term
Please advise....
Click to expand...

Nobody can give you a yes or no answer. Rule of thumb is stress test yourself with a rate rise of say 1-2%. If you can afford that, trackers offer the best value over the long term. If you think you couldn't afford anything over the fixed rate on offer then fixing might be the best thing for you. There are plenty of threads on this subject
 
thanks guys,
i was onto my bank yesterday and i might be able to get a 3 yr fixed so id prefer that than a variable for now. first time buyer and have to watch the budget so its the safest way to start off i think, thats for your help:)
 
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