Personally I think that now is a great time to think about fixing your mortgage. Although it is expected that interest rates will fall again next month is is debatable whether or not lenders will pass on further reductions to fixed rates.
Fixing for 3 or perhaps even as long as 5 years is an option. Some banks are offering 10 year fixed rates but that is an awfully long time to commit to.
AIB have good fixed rates on offer. For example you can fix for three years at 3.1% or for five years at 3.6%.
These are great rates to fix in at, however fixing your mortgage rate might not be the best option if you,
1/ are currently on a good tracker rate
2/ might need to move house before the end of the fixed rate
3/ want to pay off lump sums
If you are not affected by the above then fixing might be a good idea. Despite the fact that there may be another rate cut next month there is not much further that rates can go. You could say we are close to the bottom of the current rate cycle.
Once the economy starts to improve (and it will at some stage) rates will undoubtedly start to creep up again. Chances are that rates will edge back up to 4 or 5% and so fixing in at anything under 4% has to be a good idea.
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