AIB to announce fixed rate cuts today

laura28

Frequent Poster
Messages
98
I think we need to remember there are some AIB customers who can't switch as locked into trackers....we have a tracker mover mortgage and can't move or it's not worth our while moving until any rate moves below 1.75%...
 

Tenente

Registered User
Messages
4
In some cases it is not a question of AIB customers being too lazy to switch. Some have split mortgages with one part on a good tracker rate and the other part on a variable rate. It may be possible to get a better deal by fixing the variable part.
 

Brendan Burgess

Founder
Messages
41,421
there are some AIB customers who can't switch as locked into trackers....
Eh, you are not "locked in" to any variable rate mortgage. You can fix if you want or switch to another lender if you want.

It would be very foolish to do so, but you are not locked in.

Brendan
 

Mrs Vimes

Frequent Poster
Messages
1,000
I presume there is also a cohort who have either impaired credit rating which would preclude a switch or whose income does not meet the current LTI requirements.
 

bbari1

Frequent Poster
Messages
64
I'm with AIB on 2.75% variable. LTV <50% and o/s amount is €104K.

I am hoping to clear the mortgage in next 5 years (max) but it could be 2/3/4 years. I won't be paying in one big chunk of 80K but perhaps 10-20-30K p.a.

I know by fixing for 3 yeas I can drop the rate by .20%, saving of €500 (over 5 yrs) but it takes my freedom of paying lump sum every year for 3 yrs. What do you suggest in this case?
 

HollowKnight

Frequent Poster
Messages
212
I'm with AIB on 2.75% variable. LTV <50% and o/s amount is €104K.

I am hoping to clear the mortgage in next 5 years (max) but it could be 2/3/4 years. I won't be paying in one big chunk of 80K but perhaps 10-20-30K p.a.

I know by fixing for 3 yeas I can drop the rate by .20%, saving of €500 (over 5 yrs) but it takes my freedom of paying lump sum every year for 3 yrs. What do you suggest in this case?
Stay on your variable rate and just keep overpaying.
 

skrooge

Frequent Poster
Messages
204
I'm with AIB on 2.75% variable. LTV <50% and o/s amount is €104K.

I am hoping to clear the mortgage in next 5 years (max) but it could be 2/3/4 years. I won't be paying in one big chunk of 80K but perhaps 10-20-30K p.a.

I know by fixing for 3 yeas I can drop the rate by .20%, saving of €500 (over 5 yrs) but it takes my freedom of paying lump sum every year for 3 yrs. What do you suggest in this case?
Option 1: fix the lot.
+ You reduce your current mortgage rate.
- you may not have the flexibility to overpay... Depends on where break fees go

Option 2: stay as you
+/- reverse of option 1.

Option 3: split mortgage. Work out what you'll likely be able to pay off in the next 3 years and fix the balance.
+ Lower rate on that part of the mortgage you know you can't touch
+ Keep partial prepayment flexibility
- not as cheap as what option 1 would be.

Excuse the pun but I'd be split between options 1 & 3. With break fees clearly defined now fixed rates are a lot more flexible than they previously were.
 

bbari1

Frequent Poster
Messages
64
Option 1: fix the lot.
+ You reduce your current mortgage rate.
- you may not have the flexibility to overpay... Depends on where break fees go

Option 2: stay as you
+/- reverse of option 1.

Option 3: split mortgage. Work out what you'll likely be able to pay off in the next 3 years and fix the balance.
+ Lower rate on that part of the mortgage you know you can't touch
+ Keep partial prepayment flexibility
- not as cheap as what option 1 would be.

Excuse the pun but I'd be split between options 1 & 3. With break fees clearly defined now fixed rates are a lot more flexible than they previously were.
Thank you.
if I split 50/50. Difference of interest charged on €50K over 3 yrs is €160 (2.75% v 2.55%). Not worth losing the freedom as I may be able to finish it off quicker.
 
Top