Fixed rates increasing
The latest Ecb rate reduction has been passed on by most lenders(Ulster and First Active have not passed it on) but the sting in the tail was the increase in fixed rates that accompanied the new variable rate reductions.
Whilst the increase is not dramatic at mid term rates ,some longer term fixed rates have increased by .25% which is significant. In practical terms this implies that the market expects rates to increase over the medium to long term which i suspect is no real surprise.
However from a borrowers perspective it is important to remember that rates will most certainly move up over the coming years even if there is still a little way to go on the downward variable rate at the moment.
The ecb are not firm believers in zero or near zero rates as is happening the the UK and the Us.
So if you you are considering fixing( and assuming you don't have a tracker mortgage ) now may well be as good a time as ever.
Talk to our consultants about some of the low cost rates still on offer.