Should I go for 2yrs fixed or 3? need to answer bank by tomorrow

Why not overpay instead of fixing the rate.?
At least the term of your loan would be reducing .
Why save and then pay off at end of year.? When you could pay off what you can afford on top of your mortgage each month.

The way I see it if you think rates will go up in next few years then you decide to pay more now for the first 1.5 to 2 years until the rates are equal then you are only saving money for the last part of your fixed term. Assuming they go up at all.

Overpay by the amount you would have paid extra . I am.
 
QED said:
I am probably going to change from my AIB variable (2.25%) to 5 year fixed 3.86% this week.
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You'd better be quick... Colm Doherty was on Morning Ireland today saying a rise in mortgage interest rates at AIB was 'inevitable' in 2010.

When a bank CEO goes on the radio and tells the nation he's putting rates up, you can be pretty sure he's not going to wait too long before doing it...
best of luck
 
as someone who grew up in the 80s and watched my siblings paying 14% interest rates, i'm definitely opting for a 5 year fixed mortgage at the moment for my new build. i don't care about being penalised for paying extra off...why not just put any extra you have in a high interest savings account and then pay off as a lump sum when the fixed interest period comes to an end? you've then even greater peace of mind knowing you have a decent savings account in case anything goes wrong in the meantime. btw i don't ever intend to sell so a fixed rate suits me perfectly in that regard.
 
miser said:
You'd better be quick... Colm Doherty was on Morning Ireland today saying a rise in mortgage interest rates at AIB was 'inevitable' in 2010.

When a bank CEO goes on the radio and tells the nation he's putting rates up, you can be pretty sure he's not going to wait too long before doing it...
best of luck
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Agreed, it appears inevitable.
 
Thanks to everyone for your advice. I love it when a decent discussion happens on this site. I appreciate all replies. I plumped for the 3 year fixed in the end, So whats done is done now. I wasn;t brave enough to go for variable in the end.

ellamc
 
well at least you know exactly what your repayments are going to be for the next 3 years so you can budget around that
 
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