With many Irish lenders increasing variable rate mortgages – some homeowners might be thinking about switching to a fixed rate mortgage.
The best 3 year fixed rate mortgage available at the moment is 4.6% from Danske Bank (Max LTV 50%). See the current lowest 3 year fixed rate mortgages.
Danske Bank have a 5 year fixed rate at 5.1% also available on an LTV of 50% or less.
LTV means Loan to Value Ratio – an LTV of 60% means that the mortgage needs to be 50% (or lesss) of the value of your house.
See lowest 5 year fixed rate mortgages here.
Fixing your mortgage now for 3 or 5 years, hoping that this will cushion you against future variable rate rises – is a gamble. It might pay off or it might not. Fixing will give you the certainty of knowing what your payments will be for the next 3 or 5 years – which can be a good thing in itself.
Switching lenders to get a fixed rate will also incur legal and valuation costs which could well exceed any savings you might make.
Also – if variable rates fall in the future you may be penalised if you want to get out of a fixed rate deal before the expiry date.