AIB vs Boi

L

Ladder22

Guest
Hi Folks,

After about 6 months we finally received an offer from BoI on a 3.5% variable mortgage.

I see AIB are offering 3.15% which would mean a saving of €9,000 over a 20 year term, which is obviously a huge saving if AIB were consistently .35% better than BoI over 20 years.

My question is, do you think the difference between the two would tend to even out over a 20 year term.

We're really don't want to delay getting a mortgage too long now that we have an offer but for the sake of €9000!

Thanks
 
Unfortunately, it's impossible to answer that question. Lenders are free to increase or decrease their variable rates (unliketrackers) at any time. AIB's rate is lower than BOI's rate at the moment but that could change overnight. It's just not possible to predict twenty years ahead.

Congrats on getting a favourable rate with BOI, by the way! Did you have a current account with BOI or is that rule only for 'switchers'? Maybe the banks are beginning to lend more freely again now that they have been re-capitalised.
 
If it were me (we are a about 2 years away from buying) I would look at the charges for overpaying the mortgage... We have plans to overpay the mortgage in the early years, though we will probably not be able to use mortgage interest relief as it will probably be abolished by then. But if you overpayed your mortgage you would make more than a €9000 saving over the life of the mortgage, if charges are imposed on overpaying then it could add up over time.

For us we are a young couple who intend to use the rent-a-room relief for the first few years before we have kids and use the proceeds towards overpaying. But there is no way of predicting what way the wind will change regarding mortgage payments. It is a competitive interest rate from BOI from what I've seen so far... good luck with whatever you decide to go with
 
Thanks for your thoughts,

When we applied to BoI (about 5 months ago) they were more competitive than AIB, and now its the other way around. This just goes to show I guess that it's a mugs game wondering which lender will be more competitive in the long run.

JAS376 we're switching, with a LTV of 40% and both have saving's a/cs with BoI for 25 years (not a whole pile of saving in them mind you). We're also topping up for home improvements. They had agreed in principle ages ago, but then decided they wanted builders quotes before they'd approve the top up, which dragged things out.

IL&P are offering 3.7% 5 year fixed, which is very competitive, but at this stage I think we'll go with the bird in the hand.

Thanks for the tip ASIF I'll definitely check that out.

All the best
 
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