How long to fix mortgage interest rate

Hi,

In the past we fixed out mortgage interest rate quite high and were stuck with high repayments and don't want to do the same again.

We have €150k mortgage left over 15yrs and don't know to fixed for 5yrs at 2.35% or fix for 10yrs at 3.10%.

Any advise much appreciated, thanks.

Hennessy1986 said:

We have €150k mortgage left over 15yrs and don't know to fixed for 5yrs at 2.35% or fix for 10yrs at 3.10%.

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What is your current mortgage payment as a % of net income?

How secure is your employment?

How well would you be able to weather an increase in rates?

We could manage a small increase in repayment if interest rates went up.

I'm woundering should we fix for 5 or 10 years. In 5yrs time would people expect variable and fixed rates to be much higher than today's rates.

Hennessy1986 said:

I'm woundering should we fix for 5 or 10 years. In 5yrs time would people expect variable and fixed rates to be much higher than today's rates.

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You and me are just people on the internet and no one can make reliable predictions for where rates will be in five years.

What's more important is your own circumstances and level of comfort if rates rise. You know much more about this then you (or I!) do about the future path of interest rates.

Have a look at this excellent thread by @Paul F , particularly the first few posts and consider posting more of your details there to get better advice

Hennessy1986 said:

5yrs at 2.35% or fix for 10yrs at 3.10%

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I'm not sure who is offering these rates. I briefly checked on the CCPC mortgage comparison but couldn't match any LTV's/products but I'm sure it is there somewhere.

Forget about what you fixed at in the past, your focus should be on getting the best rate for your circumstances today.

If switching is not a problem for you (i.e. your employment is secure, your LTV/LTI are good) and if certainty in your monthly payment is what you value most, then you should be considering fixing at the lowest rate for as long as possible, even up to 15 years.

However, the impact of switching costs & potential cashback is significant for a loan of €150k so I would recommend that you provide more detail as outlined in the above thread

Those rates read as quite high to me.
Have you looked at other providers.

Avant are offering 1.95% for 10!year fixed if I remember correctly.

Horatio said:

Those rates read as quite high to me.
Have you looked at other providers.

Avant are offering 1.95% for 10!year fixed if I remember correctly.

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Hi Horatio, these rates are with AIB. We've never switched lenders and probably a little cautious as I don't really know anything about Avant. Are Avant a safe option to go with.

@Hennessy1986 Please consider posting your mortgage details in the switcher thread to learn your options and get estimates of what you would save.

Paul F said:

@Hennessy1986 Please consider posting your mortgage details in the switcher thread to learn your options and get estimates of what you would save.

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Thanks Paul F just done there now.

Hennessy1986 said:

Hi Horatio, these rates are with AIB. We've never switched lenders and probably a little cautious as I don't really know anything about Avant. Are Avant a safe option to go with.

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They're all subject to the same regulations and as such each is as good or bad as the rest. I'd have no hesitation switching to Avant.

In fact you might be justified in taking the position that Avant or others relatively new to the Irish market have not dirtied their bibs while some of the other longer term traditional players have absolutely destroyed the walls, carpet and curtains with bolognese sauce, ribena and vomit, figuratively speaking of course.