Fixing a mortgage

RuskyRusky

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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!
 
Given you have spare cash to throw at the mortgage currently and you may want to move in the next two years then no and no. It will cost you €200 for a valuation if you want to change any mortgage from a LTV band to another. i.e. if you're fixed rate is based on a LTV of 50% you will need to prove it to them by getting a valuation.
 
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