Variable or fixed rate

[craggman]

I am in a position, because of credit history, where I have to take out a GE mortgage and have the option of a 3 year fixed or variable rate, both at over 8%. Should I take the variable and hope that it will go down; knowing the type of lender that they are, it will probably go up as they don't seem to respond to ECB reductions.

 

[j26]

Go variable unless you really can't afford a hike in rates.

Your rating may improve in the future to the extent that you might be able to get a mortgage from one of the major banks at a much better rate. If you're locked into a fixed rate you'd pay a hefty enough penalty to move out of it.
Also, rates seem unlikely to go up over the next while.

 

[Beanis]

I have gone from a variable 6.1% to a fixed rate of 4.5% and I have been charged a fee of 125 euro, is this normal. It does not sound logical to me