1. Conor

    another great article on interpreting the yield curve and taking an analytical approach to making mortgage decisions. So do you still think that locking in your mortgage for the long term is the way to go?

  2. Hi Conor,

    I think that it boils down to where your breaking point is, if (for instance) you were to say ‘I did the figures, and if rates go to 6% I’m doomed’ then yes, lock in – pay the premium for doing so in the near term, if not though and you feel you can ride the curve then enjoy the gain you have in the here and now.

    It’s probably the hardest question to ask me! Because on one hand you have to make an inflation call but on the other you have to make a personal decision and only time will tell, my feeling is that the long term fixed rate holders will be glad of their choice in the long term, and the short term tracker/variable thinkers will be glad in the short term – might sound silly but I think that synopsis will hold true.

    One thing variable rate holders should be well aware of is that margins are almost certain to increase this year even if the ECB don’t do anything.
    thanks for dropping by!

  3. Excellent and informative article Karl. As a typical bar stool economist I think that the Interest rate debate is going to be one of the big talking points in the meeeja as the year progresses.

    The “shall I fix or ride it out on variable” debate will have lots of people losing sleep and threatens any kind of economic recovery in debt burdened Ireland.

    As you’ve said countless times before – if you’re risk averse move to fixed now and pay the premium for your piece of mind.

    Personally I can’t see rates going up beyond 1% in the next 24 months – although as you’ve said that could change quickly if inflation takes hold with all this government stimuli across Europe.

    A lot of people are struggling already and that’s with interest rates at all time lows – doesn’t bear thinking about what will happen if inflation gets out of hand and rates go up by anything more than 2-3%

  4. Anne

    Hi Karl.

    I am currently with the EBS, and have 21.5 years left on my mortgage, I am on a variable rate of 2.63%. I was thinking of moving to AIB and taking out a 3 year fixed rate, they have a ‘new business’ 3 year fixed rate of 3.19%, but I would have to extend my loan to 23 years in order to match my existing mortgage payment with the EBS, in brief i’m hoping to be able to fix at this rate to avoid any increases in the variable rate comming soon. What’s your advice?.
    Thanks, Anne

  5. alison

    hi karl, im really hoping you can help me. i have 23 years left on my mortgage at a current variable rate of 3.24% with kbc. im thinking of locking into a fixed rate of 3.99% for either 2 or 3 years – this is there maximum they will let me fix for. should i do it this month or leave it a couple of months. even if the ECB dont increase there rates this year, kbc probably will, will they, please reply


Leave a Comment

Awesome! You've decided to leave a comment. Please keep in mind that comments are moderated.