Covid-19 impact on Standard Variable Rates


Frequent Poster
I'm currently fixed with EBS @3% until June 30th. I am in the process of switching to AIB at 2.55% for 3 or 5 years (unsure about this because of AIB's account fees). I could stay with EBS at 2.9% for up to 5 years. I have about €121,000 left over 13.5 years.

Covid will obviously have an impact on interest rates and the poor SVR customer will bear the brunt of it.

My question is - should I be fixing for as long as possible?


Frequent Poster
why not go to KBC for up to 2.25% and 3k cashback (or PTSB, BOI)?

Duration of fixing is a guess even to the best educated. My choice is to keep moving. Even if in fixed, break fees are about zero currently


Frequent Poster
We are in the process of switching, unsure whether to fix for 3 years at 2.5% or take the variable at 2.95% and chance another switch, obviously we have concerns that variable rates could go up quickly given the current situation. Any thoughts/advice would be much appreciated.
Thank you


Frequent Poster
No reason for a bank to lower their variable rate. They would lose a lot more money on their existing mortgage book then they would earn from new loans.

Any movement would be on their fixed rates. On that point, as a marketing campaign/money generator, now is probably not a great time. With new business being so low (down 62%) it's not going to earn them much. With a quarter of the working age population on some kind of state support their market has shrunk significantly.

I'd say we'll have to wait until pandemic payments stop + a few months to see any kind of movement in any rates if at all.


Frequent Poster
I would be strongly of the view that the direction of travel for rates is down.
Am not convinced. Market has shrunk a lot. Firms tend to compete for market share in a growing market. That'll take a while

Anyway the Irish mortgage market remains uncompetitive given how few players there are. As long as this persists banks will price high to subsidise their less profitable back book.

Their main cost of funding - deposits - can't fall much further either.