Should I fix for 3 years or 5 years?

tigger123 · 22-07-2022 9:04am #1

Hi all, some advice needed.

We've been offered a 3 year and 5 year fixed from our bank, both at 3%. This rate would reduce our monthly payment by approx 40 euro (better in our pocket than theirs).

But what I'm wondering is whether its a good idea to fix for 5 years? Or will this current situation pass relatively quickly?

Please polish your crystal balls...

accensi0n · 22-07-2022 9:05am

5 years.

ongarite · 22-07-2022 9:07am

Fix for 5 years.

ECB base rates will never be a low as they have been for last few years, virtually negative interest rates. Only going to increase to 2% by end 2023.

3% fixed is poor rate IMO.

StevenToast · 22-07-2022 9:07am

As long as you have no intention on selling the house in the next 5 years....

Fix for 5 years

tigger123 · 22-07-2022 9:10am

https://www.boards.ie/discussion/comment/119371330#Comment_119371330

Why does the house sale within 5 years come into it? Because of the breakage fee?

(Yes I can hear you Clem Fandango!)

The Mulk · 22-07-2022 9:14am

I'm fixing mine for 20 years at 2.5%. We've just gone onto variable at the moment, knocks 5 years of the term with the same payments and can over pay by 10% every year