Advice wanted - coming close to end of 1 yr introductory mortgage fixed at 2.8

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podgerodge

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Last year I remortgaged my house to purchase a French holiday home. Total mortgage on my home property is just under 60% LTV. I took the AIB one year introductory fixed at, I think, 2.8% as this would beat the tracker for that first year.

Now that the year is nearly up, I have to decide on what mortgage to go for - I'm guessing I will just go to AIB's tracker (rate for under 60% LTV) as I don't really have the stomach for moving institution. But as I and Mrs Podgerodge will be getting the full SSIA (circa 42k) next year the idea of an offset mortgage is interesting - such as PTSB - given that we don't have any immediate plans for the use of the money (and we don't want to just pay 42k off the mortgage).

Any advice appreciated.
 
As ever (search for other threads on fixed rates) only fix if you really need to - e.g. you are under cashflow pressure, or would be if rates increased by a few percent, to meet the mortgage repayments. Don't do so in an attempt to time the markets, second guess the institutions or save money. If you can afford fluctuating repayments then you should go for the lowest margin tracker available to you. You should do your own stress testing of your repayments and see how comfortable you would be if rates went up by a few percent. I'm not saying that this will happen but best to be prepared. Use this calculator to model such scenarios. Hope that helps.
 
Agreed, I would not contemplate any fixed rate. Having 42k in my account from the SSIA offset against interest though with PTSB for as long as it remained there may save more than a slightly lower variable rate with AIB...
 
I think its illegal to offset the SSIA or use it as collateral of any sort, if PTSB say otherwise I may be wrong ....and if they show you the legal opinion from the revenue on it in writing .

NIB are cheaper for >60% LTV and offer €600 towards changeover expenses to their tracker, worth a look , they have a separate offset product too.
 
sorry, this would not be offsetting the SSIA, it would be offsetting the money I get from the SSIA after maturity.
 
I assumed that podgerodge meant that when the SSIA matures the proceeds can then be offset against the mortgage while remaining available for use. For the moment the funds are locked up in the SSIA account.
 
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