On variable, go fixed?

Hi
I've a variable mortgage with the EBS. (1 year in, borrowed 260K over 25 yrs) Was just looking at their website and the rates table says it applies to new loans only. Do I have to ring the branch to find out what my current rate is?

Also, a lot of people are changing to fixed rate mortgages at the moment and I'm wondering if I should too. I suppose my reluctance is that the banks will have a better idea than me of how the rates will go, and will not lose money on fixed rate mortgages. On the other hand, if they get it wrong, will they be looking at variable rate customers to make up the shortfall? Should I be looking at going fixed?

Hi Gordanus,

Know what you mean, banks are never doing you any favours one way or the other they win, but it really depends on your own situation I suppose, I always think fixed is a bad way to go because if rates are falling you're missing out on the decrease and if rates are rising you're storing up trouble for the future, much easier to handle your mortgage going up 50 or 75 a time than miss out all the increases and then it goes up several hundred in one go overnight. But then, might suit someone who is going back to study, has small children, etc. for personal reasons it may be a good option

Thanks hippy,
I don't really need to go fixed. Although I've had the pay cuts, my job is permanent and I didn't borrow excessively so I have some leeway. But only some! If worst comes to worst, I can take a lodger.

I'm hoping with the euro we won't have a reprise of the 80s with massive interest rates. I suppose that's what I'm betting on. Just other people's talk is making me a bit nervous!

See if they will let you split it - 50% fixed and 50% variable - then you will have the best of both options and can stop worrying.

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