Fixed mortgage but for how long???

[strat_640]

Ok, so mine would be the age old question and possibly asked, reviewed and answered a number of times on this site!

Question: When getting a mortgage based on today's rates, should we take a fixed rate for 0, 1, 2, 3, 4 or 5 years??

That's pretty much the question! AIB have a fair rate in comparison to other lending houses but I cant help but feel that their rate will be increased some time in the future! Has anyone a crystal ball or more so, their ear to the ground concerning the future lending rates??!

Much appreciated!

 

[ryaner]

With fixed rates you are effectively asking to predict the future. Conventional wisdom has mostly been to take the SVR and overpay the difference of what the fixed rate was going to be into an account, then dip into it if the SVR goes up. In most cases you'll be better off.

It gets a little strange today given that fixed rates are below the SVR in some cases and the banks are saying the SVR will go up this year.

 

[strat_640]

Yeah its some gamble all right! I love the way banks would prob look down their nose at any applicant for betting when taking a mortgage with one provider is a gamble in itself! Wow, I would think picking your wife is easier than picking your mortgage!