You can, but the banks will see the increase too and adapt their fixed rates accordingly. Fixed rates are insurance, we may want the security that comes with them, or prefer the flexibility of SARON rates but if I think I’ll want insurance to cover certain types of events, I’d not wait until I feel the event is coming to get a policy: they sometimes come unexpected.
That’s the point within a short time frame the rates could go massively higher and then the Saron does also not help as you correctly say. Maybe an idea to split the loan in 50% fixed and 50% Saron though?
You may also want to consider the mustachian principle not to try to time the market. It refers to periodical investments, I know. But take the offer now and read the fine print, what the bank is allowed to do in case of future rate increases (I hope there is no such fine print).
Lower than that would be hard…think also about US inflation at 5.4%…
This is great point. That’s why I spent months to find something really closed to the end
A friend of my did a split of fixed 10 years and 5 years rate
If you split it, you will have harder time to refinance at a better rate in the future, especially if the parts due dates wont meet easily.
I think it depends.
Let’s say now this is the situation:
5 years at 0.83% and
10 years at 1%
At the time of the renegotiation, if the interest of 5 years is at 1%, then you would save some money
It might be hard to refinance your 5yrs contract with another bank than you have the 10yrs.
Changing bank seems to be only possible if there is max 2yrs between the two splits. (I dont have the experience, banker-friends told me so).