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11-01-2019, 14:26   #1
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Fixing - Does anyone consider the variable


Thinking of going with ulster bank 4 year fixed at 2.6%, which seems like the best on the market. Just wondering do people give much consideration to the variable rate at the end of the fixed rate period?
UB variable rate (currently) is 4.3% when you come off a fixed rate in 4 years, I guess I’m trying to determine how relevant is it to a decision I’m looking to make now!
KBC do have a similar fixed rate, with a much lower variable rate at the end of 4 years, however I’m conscious that KBC rate will most likely not be 3.3 in 4 years

What’s people’s thoughts in general? Very aware it’s a crystal ball scenario and someone is always right and wrong at the end!
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11-01-2019, 14:36   #2
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If you're fixing, fix at the lowest and ignore the variable. When your fixed period ends you can move to another provider for a better variable rate or fix again
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11-01-2019, 14:39   #3
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Waste of time trying to speculate about what the variable will be in 4 years.
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11-01-2019, 14:40   #4
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Ignore the variable if you've decided to fix, too much can change in the meantime so it's unlikely to be the same in 4 years anyway.
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11-01-2019, 14:49   #5
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Go with the fixed and look at fixed/variable rates again when the fixed period is over.

Also, some bank may offer a cash back when you switch. Factor this money in your calculation -- is 2.6% for 4 years with no cash back actually better than, say 3% for 4 years with, for example, €6000 cash back?
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11-01-2019, 14:49   #6
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I didn't ignore the variable. Some banks roll you off onto a loaded rate 1-2% higher than their usual rates and some banks roll you off onto a rate that's comparable to the variable they offer to the rest of the market.

The rate may change but the gap between the rate and the normal rate around the market is likely to be the same.

It's a factor worth weighing in the decision along with other issues including your own inertia and your likelihood of being in a position to remortgage with a new provider at the end of a fixed rate.
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11-01-2019, 15:03   #7
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I'd echo above. Just wait until the 4 years are up before deciding what to do. You can fix again, move to another rate or move to a different bank.
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