Fixed / Variable: What to do?

R

Riaa

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What are peoples opinions in relation to fixed versus variable rate mortgages at the moment.

I'm looking for <50% LTV mortgage. My best options seem to be

Variable: AIB 2.84%
5 year fixed: PTSB 3.70%

Is it a good time to fix or are rate more likely to fall in the short/medium term?

All opinions/advice appreciated
Thanks..
 
While I won't even hint that I know if rates will go up or not, they are unlikely to go down further. Even if the ECB were to cut all the way down to 0.25%, it would unlikely filter much if at all into the SVR.
 
I don't generally go for fixed rates. I'd go for the AIB var. rate but maybe save the difference between 2.84% and 3.7% or whatever, to supplement my repayment if rates rise. I wouldn't touch PTSB with a bargepole.
 
Thanks ryaner and michaelm for the replies.

I appreciate the original question is asking to predict the future but I'm interested in opinions nonetheless.

michaelm, Why not touch PTSB with a barepole btw?
 
PTSB are fleecing their current SVR customers, most of whom are unable to switch lender as they are in negative equity.
 
ECB are still at historically low rates, but nobody can predict what rates will go. But there is one trend. Irish banks are taking a higher margain to rebalance their books and this seems to be the future trend, and it is not just PTSB. Also I cannot see how AIB and BOI will not at some stage do the same.

The 5 year fixed at 3.7% looks good to me. Certainty and peace of mind and a low interest rate is what you are getting there. Well worth it at that rate.

All those with PTSB who are hopping mad, well just wait until the same happens to AIB and BofI customers. All banks are the same.
 
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