Stay on variable rate or change to fixed

J

JJL

Guest
Currently on variable rate of 3.75 with BOI so due to increase to 4.25 next month. Fixed rates currently on offer until end of Sep are

2 year - 4.69
3 year - 4.89
5 year - 5.29

So should I fix or stay variable, advice please.
 
You might have better luck picking this weeks lotto numbers.

Historic advise has been to stay variable unless an increase would make you unable to pay. Given the fact that the ECB has lower rates and the banks decided to then *increase* their variable rates, you can probably expect another increase on the variables when the ECB rate goes down again, but that is unlikely to happen this year.
All bets are off if they decide to follow in the foot steps of the fed and announce an unlimited QE run.
 
I agree with ryaner. Nobody can predict what way Standard Variable Rates are going to go because it's in the hands of a small number of individuals who run Bank of Ireland. Unless you can tell what decisions these men and women are going to make in the future, they cannot be predicted.

If it's something that's likely to be a cause of worry to you, pick a fixed rate - not because it might save you money against the variable rate. As said, that cannot be predicted in advance. But because you will be buying certainty for yourself. Maybe you'll end up paying a price for that certainty. Maybe you won't.
 
As you've posted 3 fixed rates and said which to choose then presumably you can afford the 5.29? Is yes then you could stick to your variable but pay a higher amount monthly, this will help to insulate you should variable rates go up.
 
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