Fixed Rate Mortgage

A Fixed Rate Mortgage is one where the rate is fixed for a certain duration (e.g. 2 years, 3 years, 5 years). The benfit of the Fixed Rate Mortgage is that you know exactly what your motnhly payments willbe, and you are protected from any increases in the interest rate. On the downside however, if the interest rate does decrease, you do not benefit from this drop. Fixed Rate Mortgages were popular in Dublin a few years ago when the ECB rate was relatively low, but now that it is up to 4%, and there is a generaly feeling that they will not rise significantly higher, there is not the same incentive to fix the rate, and so new homeowners in dublin are currently more likely to go for a tracker mortgage.