Do we know what Loan to Value this rate applies to?
Let's say ECB rates stay the same for the next year, but after a year, the variable rate in Ireland drops to 2.1% for your LTV.
By fixing you will pay an extra €500 this year , but save €500 for the next three years. So you would be €1,000 worse off if you fix now.
The only way I think you might lose out is if the Ulster Bank move results in AIB offering a fixed rate of 2.5% for ten years.
Speculating here - To beef up their new mortgages before year end so they're not in breech of CBI exemption limits (only available for <80% LTV)
July is exactly the month you'd realise you've a problem, but still have s chance to fix it. This deal will take them to the end of October...OK, so they have given out too many exemptions are if they don't write a lot of new business, they could exceed the limits.
Possibly, but seems sort of unlikely in July, unless they have been giving out lots of approvals with exemptions in the first 6 months and more of their customers than anticipated drew down those offers.
Brendan