Fixed or variable

Help. Buying house and have mortgage approval from boi (am losing my tracKer) - 5 year fxed is now 5.7%. Would variable be a better option?? They are offering 3%. This is a big difference. Any predictions on what way interest rates might go over 5 years. Seems to me that variable a better option as will be euro500 in the repayment difference versus going fixed.

1] I would go for the variable rate as although I can see rates 2%+ higher in 5 years, I cannot see them rising fast enough to ‘average’ 2%+ higher over the next 5 years
2] I find it shocking that Irish Banks are offering mortgages at 3%!
More proof that they are just becoming Govt owned utilities that will indefinitely subsidise the mortgage market. They will never make money and will require a good few billion infusion every 5 years or so

How can you be losing your tracker ? Are you trading up, down, or sideways and losing your tracker on an existing mortgage?

If you go variable, can you move to fixed without penalty at any time?
I think variable is the best option but then again I also think that 2012 will bring a financial crash, that QE is failing, that Ireland could well default within 12 months, and that it is a time to avoid borrowing at any cost so I might not be the best to give advice :confused:

Thanks. Yes trading up so have to get new mortgage therefore losing tracker.

If Ireland defaults, what way could this impact mortgage interest rates? Could they shoot up??

I think anyone that loads up on debt now needs locking up for their own protection, my advice would be keep to keep your very precious tracker and stay put, unless it is absolutely imperative that you move now.


With the direction ireland is going uncertain at best (default or not/leave the euro or not, level of interest rate hike…jus look at figures released yesterday forecasting lower growth and higher deficit) you would be mad, mad I’m telling you to let go of your tracker. Now is not the time to lock yourself into a large loan. If you absolutely have to move, why not rent out your current property and rent in your new location?