Key Post Should I fix my rate to escape the very high variable rates?

Just wondering what are peoples opinions on fixing now, I have the option of fixing with BOI 2 Year Fixed LTV <80% @ 3.6%. I am currently on 4.5%. At this stage am I better off seeing what comes of Michael Noonan's review next month before doing anything??

Well, Brendan takes the view that nobody should fix for a period of over 1 year at any rate above 3%.

If I was in your position, I would look at switching to a better variable rate with another lender (KBC offer an effective variable rate of 3.6% at your LTV and will meet all switching costs). But if I couldn't switch for some reason, I would be strongly tempted to take the 2-year fix with BOI.

I would definitely takes steps to move off your current 4.5% rate as a matter of urgency.

rebellad, I am in exactly the same position, got the house revalued last week to get the LTV <80% so can fix for 2/3 years at 3.6%. I will be interested to hear the advice of the people on this website.

random10 said:

rebellad, I am in exactly the same position, got the house revalued last week to get the LTV <80% so can fix for 2/3 years at 3.6%. I will be interested to hear the advice of the people on this website.

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I think we need to reward banks who pass rate changes onto there existing customers, Bank of Ireland is not one of these banks.
Think about it BOI are a clever bank, why do they want you to fix for 2 to 3 years, they clearly have intelligence that suggests that rates will drop and they want to lock you in now and who can tell what trick they will pull at the end of the fixed period.

I will be switching to a provider who passes rate changes onto existing customers.

Brendan Burgess said:

Remember: If you fix, and you later want to move home, you will have to pay an early repayment penalty.

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On a point of detail, I think this should read "...may have to pay a funding break fee".

The T&Cs of most fixed-rate mortgage products explicitly provide that a borrower won't have to to pay any funding break fee if the mortage is redeemed during the fixed-rate period if at that point in time wholesale interest rates are higher than at the point in time when the mortgage was originally fixed.

Any clause that seeks to penalise a borrower (by imposing a break funding fee that is not a genuine pre-estimate of the cost to the lender) would actually be unenforceable.

Thread updated here:

Should I fix my rate to escape the very high variable rates?