AIB discount tracker 3.95%

just want to make sure we are doing the right thing before we go in tomorrow and sign on the dotted line!!

we have been looking into every mortgage available and finally decided on AIB discount tracker rate of 3.9%. it seems to be the best deal around.

since we have decided to go with them and told people, lots of people have advised us their tracker rate will go way back up again.

we decided on a tracker and not fixed because we are doing a self-build and won't have full mortgage drawn down for a while and also want to find the best rate. also were told by aib that we should get a good loan to value ratio when the house was built and rates should be about 4.25% after the first year.

so, just want some reassurance (if we can get it!!) that aib's rates won't go way up after this year???? thanks

Tracker rates will only change as the base ECB rate changes. The margin above this is fixed. If you can afford repayments that fluctuate with changes to the ECB base rate then go for a competitive tracker. Only fix if, for cash flow reasons, you really need the predictability and peace of mind that fixed rates give you. Don't fix in an attempt to time the market and save money over a competitive tracker/variable rate over the medium/long term.

we have been looking into every mortgage available and finally decided on AIB discount tracker rate of 3.9%. it seems to be the best deal around

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Does this discount apply for the lifetime of the mortgage, or only for an introductory period? If the latter, what rate will apply at the end of this period?

thanks for the replies! feel much better now!!

the 3.95% applies for the 1st year (but will go up with ECB) and after that will go up to about 4.25% because our loan to value will be less than 80%.

all going to plan we would be happy with that!!! thanks!

Are you sure that you can't get a better tracker deal elsewhere? I'm not up to date with rates these days so make sure that you are getting the best long term deal and not just a nice rate for the first year.

These are AIB's current rates:
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BTW is you already have a tracker with them you have to write in to change to the new rates!

Towger.