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Why are fixed rates mortgages suddenly so low?

  • 29-11-2016 1:49pm
    #1
    ellee
    Registered Users, Registered Users 2 Posts: 397 ✭✭


    Am in the process of re-mortgaging. >80% LTV

    Fixed seems really good at the moment. According to bonkers.ie it seems I can get
    • 2.99% fixed over 3y (KBC & Ulster Bank) and
    • 3.05% fixed over 5y (KBC).

    However I am suspicious at the sudden good offers for fixed. What's the story? I heard on the news that BoI were keep variable rates artificially high to incentivise the fixed offerings but why?

    I would hate to fix for 5y and then watch rates go to 2%...

    Any theories? What's the catch?


Comments

  • #2
    bmm
    Registered Users, Registered Users 2 Posts: 912 ✭✭✭bmm


    Think of the worst, most horrible, devious reason possible and you have your answer.


  • #3
    phormium
    Registered Users, Registered Users 2 Posts: 3,395 ✭✭✭phormium


    To stop you switching again within months to another deal, the fixed rate ties you to the lender for that number of years anyway unless you want to pay a penalty to break out.


  • #4
    whiskeyman
    Registered Users, Registered Users 2 Posts: 12,564 ✭✭✭✭whiskeyman


    Be careful what rate you get put on to once the fixed term is up


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