Interest Rate for Affordable Housing Loan

Tired Paul

Registered User
Messages
262
Hi all, just looking for some advice.

Got letter from Cork City Council today regarding our A/H loan. Our current Fixed Rate term expires next month and they are giving us two options. Just want to see what you think we should do.

Currently we are on a Fixed Rate of 5.25% - this expires next month.

Option 1:
Fix for a further 5 years at Fixed Rate of 4.4%

Option 2:

Switch to Variable Rate (currently 2.75%) for the remaining term of the mortgage (15 years left)

I'm inclined to stick with option 1 as I'm comfortable knowing what I need to pay every month. Also, I'm not sure which way the variable rate cold go over 15 years. Its too long to perdict anything favourable.
Thanks.
 
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