FTB - Apartment Cost €440k - Mortgage €270k - Deposit €170k

I have Approval in Principle with AIB any thoughts on this. Figures below from AIB. The mortgage will be over 22 years, I'm a FTB, 43 and will be taking this mortgage out on my own.

Agreed Purchase Price: 440k
Mortgage required: 270K
Property details:
Solicitor details:
Moratorium required: Y or N
Rate required:

1-3 year fixed @ 3.2% - approx. €1424.96 p/m
4-5 year fixed @ 3.3% - approx. €1438.81 p/m
7 year fixed @ 3.5% - approx. €1466.73
Variable rate @ 2.95% - approx. €1390.67 – as discussed the variable can move up and down throughout the term of the mortgage and the repayments change in line with the rate change.

This is purely speculation on my part, but I would pick variable with AIB. Their fixed rates are no longer competitive.
I'd hope they'll have an announcement tomorrow after their annual results. They've lost market share so investors will want to know what they're plans are.
You can fix at any stage to the rates then available.

Add on management fees for apt complex and mortgage insurance. That's a hell of a lot of money for an apartment.

Its a 2 bed 2 bath in Rathmines 750 sq/ft south facing

Freddie said:

Its a 2 bed 2 bath in Rathmines 750 sq/ft south facing

Click to expand...

Looking at comparable properties on the Property Price Register, €440k sounds about right for a 2-bed, 2-bath apartment in Rathmines.

AIB's fixed rate mortgages are uncompetitive. Their variable rates are relatively good value but, IMO, fixed rates offered by other providers currently offer better value -
https://www.askaboutmoney.com/threads/fixed-rates-best-buys.204420/

However, the situation is fluid and AIB could well cut their rates in the coming days/weeks to regain market share. I think the best course of action is to look for mortgage approval with at least two providers and opt for the best deal when you go to draw down your loan cheque.

Aib have targeted low variable rates but not necessarily the cheapest fixed rates.

Your LTV is very close to being close to 60% (€264k) and lower rates across some providers. For this reason I'd be inclined to stay variable and overpay if you can.

I'd also look at ebs and their 2% cash back offer which would more or less get you there. From there is look to switch to another provider - aib and KBC both offer money towards switching. It's a bit of work but if you're willing to do it you could save even more. The only risk are rarat moving in the months in-between.

Folks

Freddie has asked a question about how to finance the purchase of his apartment.

He, like thousands of others has chosen to buy an apartment. That is his choice.

Feel free to start a new thread on why no one should buy an apartment, but please don't take this thread off topic.

Brendan