Interest rates

I currently have a variable mortgage. just wondering what people are thinking of doing with the current rise in interest rates.

Is it advisable to go fixed for 1, 2, 3, 4 years?

Who knows?

My advice is get rid of your variable and go with a tracker.

The general good advice (imo) given on this board is only fix if you have to - if a couple of % would hurt you badly.

Gabriel said:

Who knows?

My advice is get rid of your variable and go with a tracker.

The general good advice (imo) given on this board is only fix if you have to - if a couple of % would hurt you badly.

Click to expand...

Go with a tracker, the most likely scenario is the rates will rise by another .25% at the most bringing them up to 2.5% by about spring next year. While the Frence and German economies remain sluggish the ECB are not going to increase the rates any more than .5%.

If oil prices come down then this will further reduce the need for the ECB to increase rates beyond 2.5% at a max.

But this is all just speculation really, no one can tell for sure what will happen. Personnaly I would go for a tracker mortgage.

tracker is the best option.

As mentioned above, we are now tied to the EU interest rates which will generally remain low and even if the EU power economies improve, there will not be a desire to grow interest rates

I guess the publicity about fixing really only suits the banks.....

ECB base rate now 2.25%

Sarah

www.rea.ie