Switiching from SVR to Fixed Rate

Hi all, on BOI SVR, just wondering what people think; how long should I fix for given the current circumstances and the likelihood of greater rate increases. Was thinking of 3 years with BOI, but the 5 year rate is attractive, but don’t like the idea of fixing for so long. Would appreciate any answers.

Advice my mammy gave me… and she survived the interest rates of the 80s…

Don’t fix. (You don’t make your money back in 3-5 years as the fixed rate is higher than the variable anyway.) This is how banks make their money.

Fixing is not a good idea unless you foresee being so stretched that you could not keep up with repayments .05% higher than the fixed rate.

Save, save, save the extra money that you would be paying into a higher fixed interest rate by paying that same amount into your mortgage now. This will reduce your principle and you technically still have it if you need it.

Why would you give this money to the bank? Use it as a cushion if interest rates rise. Talk to the bank about the possibility of withdrawing the extra you’ve been putting into the mortgage if things get really stretched in the future but TRY leave it there. (this was an option in my mams time i presume its the same now. She was told she’d overpaid and would she like to withdraw it-she left it just in case.)

(If you really really need to fix, go the half fix option as you can still put extra money in to reduce your principal. but again…that extra interest you’re paying is going into the banks pockets-not your account.)

Thanks for that advice, hadn’t thought of that.
Will consider putting the money away like that and hope we’ll ride the storm out!!
Thanks again

Will consider putting the money away like that and hope we’ll ride the storm out!!

Post Office Savings Certificates…as good as anything ???