Bank of Ireland launch new 10 year fixed mortgage rate at 4.99%
In addition to their one, two, three and five year fixed terms, Bank of Ireland are the first bank to offer a 10 year fixed (RTE reports).
This is potentially highly appealing to new and existing homeowners. With the ECB rate at the absolute floor, the only way is up.
While there is not much chance of a rise in the rate anytime soon, not with fears of crashing the whole eurozone, but at some point in the next 10 years we would hope the continent would recover enough to get back to normal interest rates (unless we see a repeat of Japan’s Lost Decade).
Fixing a 10 year deal now, even at a fair high 4.99%, would leave the mortgagee laughing as the rest of the country on trackers and variables (like most of the country) gets hit with big rises in their monthly repayments.
Although with the nation’s personal finances still fragile at best, any major rise in the interest rate would spur disaster to house prices and possibly a second mortgage arrears nightmare for the banks.
Go for the 10 year if a set figure gives you comfort, but don’t bet on immediate rises in interest rates in the next 5 years.