RuskyRusky
Registered User
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Hi,
Long time lurker but the first time poster. We have a 193.5k variable mortgage with AIB @ 2.95%. Current remaining term is 26 years which is reducing as we’re overpaying the mortgage by topping up every month to ~€1300pm (this month it’ll be €879 monthly plus €421 overpayment). The projected term reduction at the current interest rate and the rate of overpayment is 9 years. The questions is - does it make financial sense to switch to fixed AIB mortgage at 2.55% for 3 or 5 years which doesn’t allow the overpayment? We’re due a first family expansion mid July so it’ll make the mortgage assessment in summer a bit more difficult but not terminal as our current combined income is in excess of 110k. Another thing is that we’re thinking to start looking to trade up to a bigger house (3 bed to 4 bed) in the next year or two so what could be the potential effect of breakage fees? We will use the overpayment money towards the deposit. And the last question - do we need a valuation and a solicitor for this type if switch? Thank you for your help in advance!
Long time lurker but the first time poster. We have a 193.5k variable mortgage with AIB @ 2.95%. Current remaining term is 26 years which is reducing as we’re overpaying the mortgage by topping up every month to ~€1300pm (this month it’ll be €879 monthly plus €421 overpayment). The projected term reduction at the current interest rate and the rate of overpayment is 9 years. The questions is - does it make financial sense to switch to fixed AIB mortgage at 2.55% for 3 or 5 years which doesn’t allow the overpayment? We’re due a first family expansion mid July so it’ll make the mortgage assessment in summer a bit more difficult but not terminal as our current combined income is in excess of 110k. Another thing is that we’re thinking to start looking to trade up to a bigger house (3 bed to 4 bed) in the next year or two so what could be the potential effect of breakage fees? We will use the overpayment money towards the deposit. And the last question - do we need a valuation and a solicitor for this type if switch? Thank you for your help in advance!