According to Charlie Weston in today’s independent
I would save €9 a month for the pleasure of being locked in.worth switching from the 2.75% variable to the 3 year fixed I wonder? It doesn't look like they're going to do anything with the variable as all the competition in the market is on fixed rates. What would it cost to break out of the fixed if I later decided to switch?
This is entirely my personal opinion. I've absolutely no insight into what any bank is thinking regarding mortgage rates.Is there any thought on whether the variable rates will start to change at all? Or if the fixed rates will change again in the next year enough to make people regret going for the 3 year fixed?
This is entirely my personal opinion. I've absolutely no insight into what any bank is thinking regarding mortgage rates.
I don't think AIB will touch the lowest LTV variable rate. It's 2.75% and the lowest rate available. The market is competing on fixed rates solely now, but AIB get to use this in their marketing. However we might see a bit of downward movement in their higher LTV & SVR rates. But I do think 2.75% is going to be their floor.
As for fixed, across the market I think 2% will be a hard floor that's not going to be passed in the foreseeable future. We already have 2.2% & 2.3% rates available, with some cash back for new mortgages.
I think what we will see this year is the lowest rates being made available for longer periods as banks use flatter interest rate curves to lock in funding and customers for longer. With AIB we already see the same rates for 3 & 5 years, and these are lower than the 1 year rate. I think we'll see more of those across all the lenders and over longer periods.
In summary, I think we're more likely to see banks offering 2.75% over 10 years than sub 2.2% over 2 years.
No, this reduction doesn't apply to EBS. They have their own pricing proposition, using cashback.Does anyone know if rate reduction will apply to EBS mortgages? I see Haven mentioned but no reference to EBS.
|Max LTV||Fixed term||Rate||Cash back||Notes|
|KBC||60%||2 year||2.25%||€3,000 for switchers only||Current a/c customers|
|KBC||60%||3 year||2.25%||€3,000 for switchers only||Current a/c customers|
|KBC||90%||2 year||2.3%||€3,000 for switchers only||Current a/c customers|
|KBC||90%||3 year||2.35%||€3,000 for switchers only||Current a/c customers|
|Ulster||90%||2 year FTB only||2.3%||€1,500||3.5 times LTI|
|Ulster||90%||2 years||2.45%||€1,500||Non FTBs|
|KBC||60%||5 year||2.4%||€3,000 for switchers only||Current a/c customers|
|KBC||80%||5 year||2.45%||€3,000 for switchers only||Current a/c customers|
|KBC||90%||5 year||2.5%||€3,000 for switchers only||Current a/c customers|
|KBC||90%||1 year||2.5%||€3,000 for switchers only|
|AIB||90%||3 or 5 years||2.55%||€2,000 for switchers only|
|Ulster||90%||4 years FTBs only||2.6%||€1,500|
|Ulster||90%||5 years FTB||2.6%|
|BoI||All||1 or 2 year||2.9%||2% + 1% extra after 5 years|
|BoI||All||3 or 5 year||3.0%||2% + 1% extra after 5 years|
|EBS||All||1,2,3,4 or 5 year fixed||2.9%||2% + 1% extra after 5 years|
Can I ask why AIB customers would not switch to KBC or Ulster? I can understand effort vs. reward, customer service, neg equity issues etc. But the conditions are in the customers favour here. The opportunity costs of not moving are huge up to 1% pa, the medium term outlook for rates is stagnation (look at any recent bank/insurance company annual report), you can get a low fixed rate for 2 years so if rates do drop you won't be overtaken by the change like the people who fixed for 5/10 years a year or two ago, overpayment facility on the lowest fixed rate available is available. I would hazard a guess that most customers needs would be accommodated by these conditions.But you could switch to KBC and get a rate of 2.25% or 2.3% which would be a saving of up to 0.9%.