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Should I fix for 3 years or 5 years?

  • 22-07-2022 10:04AM
    #1
    tigger123
    Registered Users, Registered Users 2 Posts: 4,595 ✭✭✭


    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...



Comments

  • #2
    accensi0n
    Registered Users, Registered Users 2 Posts: 2,966 ✭✭✭accensi0n


    5 years.



  • #3
    ongarite
    Registered Users, Registered Users 2 Posts: 8,508 ✭✭✭ongarite


    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.



  • #4
    StevenToast
    Registered Users, Registered Users 2 Posts: 4,036 ✭✭✭StevenToast


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

    Fix for 5 years

    "Don't piss down my back and tell me it's raining." - Fletcher



  • #5
    tigger123
    Registered Users, Registered Users 2 Posts: 4,595 ✭✭✭tigger123


    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!)



  • #6
    The Mulk
    Registered Users, Registered Users 2 Posts: 1,353 ✭✭✭The Mulk


    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



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  • #7
    StevenToast
    Registered Users, Registered Users 2 Posts: 4,036 ✭✭✭StevenToast


    Exactly......if you sell within that timeframe you will be stung with a hefty enough penalty (depending on how long is left in the fixed term)...

    Interest rates are only going one way for the next few years...

    "Don't piss down my back and tell me it's raining." - Fletcher



  • #8
    paulieeye
    Registered Users, Registered Users 2 Posts: 903 ✭✭✭paulieeye


    Worth noting that with Avant if you move house and take your next mortgage out with them then there is no break fee on the initial mortgage.

    I'm looking at fixing for 10 years.

    OP, you might be able to do better than 3% if you look elsewhere. Is there a cashback to make the 3% a bit sweeter?



  • #9
    Fawk Nin
    Registered Users, Registered Users 2 Posts: 251 ✭✭Fawk Nin


    https://www.boards.ie/discussion/comment/119371354#Comment_119371354

    Avant?



  • #10
    The Mulk
    Registered Users, Registered Users 2 Posts: 1,353 ✭✭✭The Mulk


    https://www.boards.ie/discussion/comment/119371549#Comment_119371549

    That's it, we traded up about 5 years ago so plan to stay here, hopefully.



  • #11
    tigger123
    Registered Users, Registered Users 2 Posts: 4,595 ✭✭✭tigger123


    https://www.boards.ie/discussion/comment/119371542#Comment_119371542

    Yep, there is a cashback.

    I tried ringing BOI to discuss the breakage fee on our current fixed rate. They're a complete nightmare to deal with sometimes.



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