Fixed mortgage rates, to fix or not to fix, that is the question?

It is clear from reading reports over the past few months and weeks that Irish lenders are giving their clients better value than their counterparts in the UK.
Just look at the facts, the base rate in the UK is only 0.5% and the average mortgage rate is over 4% APR, in Ireland the ECB rate is 1% and the average variable rate is about 2.7% APR. Considering, lenders are paying high rates for deposits, for example some institutions are paying 3.5% on deposit, there is an imbalance that will be corrected sooner than later.
But what does this mean, for rates going forward?
It is obvious Irish lenders are going to have to increase their variable mortgage interest rates, one lender bucked the trend earlier this summer,and increased thier lending rate, but the other are only waiting until the time is right, post NAMA to increase their Variable rates, and will most likely also reduce the rate paid for deposits.
By how much will rates rise? that is the $64 question? but it is fair to say, it will be an increase of at least 0.5 to 0.75% and that is separate to what ever the ECB does next year, and we all know the ECB will increase rates sooner or later, but most likely later, so watch this space.
Now for fixed rates, currently fixed rates are about 4% for three years and 5%+ for 5 years or so.
So to answer the question, what do I do about fixed rates?, if you are looking to save money, then fixing may not give the result you want, because interest rates, may only rise to about the fixed rate and then crest and fall back again, with no saving.
If you want the security of a fixed repayment for a period of time, then take the best rate you can get on a day, with your lender of choice and then forget about rates for the term chosen.
If you have a question, feel free!
Gerry