Is 3.2% 3 Yr Fixed a decent rate?

Lilywhite9

Hi,

Looking for some advice on fixing a mortgage rate. We are about to sign up for a first time buyer mortgage with Ulster Bank. The best rate appears to be a 3 year fixed rate of 3.2%. However, I'm a little reluctant to sign up for 3 years when rates are dropping.
For people familiar with this area, does 3.2% sound like a good deal or are we best to stick with a higher variable rate on the assumption it will drop lower than 3.2 over the 3 years?

Any advice would be appreciated!

tommyboy2222

IMO SVRs will not come anywhere near 3.2% over the next few years.

I'd fix in your case. You should have the option to move to a SVR after 3 years if I am wrong.

rainbowtrout

I'm no expert on economics, but when I bought my house in 2003 I got an introductory rate of 3.0%. I wouldn't have had a massive understanding of rate rises/falls back then, but realistically it's rock bottom in terms of mortgages and the economy was flying. At the height of the boom (2006/2007)when rates were rising every couple of months (SVR/tracker), my rate was up around 6.0%

The economy is probably in better shape now than it was in 2008/2009. People are starting to spend money again. Rates mightn't rise again for a while, but i can't see them dropping any further.

I think 3.2% fixed for 3 years is a good deal. You can change to SVR in 3 years.

Lilywhite9

Thanks for the replies, good to get some advice that's not coming from a bank. Will go with the 3.2 so. Hard to believe they were almost double that during the boom!