Roughly seven in ten Irish mortgages are on a variable rate. As a general rule, when you're remortgaging it's worth keeping the term as short as realistically possible — there's real value in having a clear end date in sight for your family home's debt.
Fixed rate mortgages
If certainty matters to you, fixing your rate for a set period locks in your repayment amount for that time. That certainty has a cost, reflected in the gap between the fixed rate and the variable or tracker rate you could otherwise get.
An adviser can talk you through the alternatives and what each option costs — the right call depends on your risk appetite, the size of your mortgage, and your income. It's also worth paying close attention to what happens once your fixed period ends, and to any penalty for breaking the agreement early (for example, if you need to sell up and move). The upside is real, though: for the length of the fixed term, you can budget with confidence, since your repayment won't move regardless of what happens in the wider market.
Running your numbers through a mortgage repayment calculator is a good way to compare how a fixed rate stacks up against a variable one for your specific mortgage.
Variable rate mortgages
If rates are falling, or expected to hold steady, a variable rate is generally the better option — you get to benefit directly from any further rate cuts rather than being locked into a fixed figure.
Which is right for you?
There's no universal answer — it comes down to your own tolerance for uncertainty, weighed against how much that certainty actually costs at any given time. Talking it through with an independent adviser before you switch is the best way to land on the right call for your circumstances.
