I have mortgage approval from several banks, how do I choose the best?

Hi everyone
I hope someone can help me. I have received mortgage approval from AIB, KBC, PTSB and BOI for a mortgage to the value of €350k and have just gone sale agreed on a property. I now need to choose between the banks and they have all provided me with rates but I am finding it confusing choosing between all the banks and all of the options.

I have read here and in other forums that variable rates should fall so I am considering just going for a short period fixed rate however looking at the current variable rate it is still much higher that the fixed rates.

Can anyone advise?

What's your LTV?

leonmahon said:

What's your LTV?

Click to expand...

The LTV is 85%

Fixing is not a good idea. I expect the rates charged in Ireland to fall. The other disadvantage of fixing is what happens after the fixed term ends? You could end up on the SVR which is very high.

Here are the variable rates for less than 90% LTV



I think you should consider AIB. AIB is the only lender to pass on the recent cuts to existing customers. Don't forget, that after taking out your mortgage, you will be an existing customer.

Keep an eye on Ulster Bank as well. The above rates are uncompetitive, but I would expect them to cut rates in the coming weeks. I have been told that Ulster Bank allows people whose LTV has reduced to house price increases or capital repayments, to move to the lower rate. This seems to conflict with their official policy. But if this were true, it would make UB a serious contender.

Hi Brendan

Many thanks for responding and for your advice.

Are the incentives offered by banks worth considering. I see that PTSB, as well as droping rates are offering to pay €1,000 of legal fees for new customers and of course BOI will pay the stamp duty to the value of 1%.

Hi All

Both AIB and PTSB have replied to me directly and have offered me the following rates;

AIB Rates PTSB Rates
Variable 4.10% 4.20%
1 year fixed (NBO): 3.50% -
2 year fixed: 3.80% 4.00%
3 year fixed: 3.80% 4.30%
4 year fixed: 3.90% 4.30%
5 year fixed: 3.90% 4.35%

To me the logical decision based on the above rates would be to go for a 1 year fixed rate mortgage with AIB and then go variable thereafter. AIB would need to reduce their variable rate by 0.6% to make variable and fixed rates the same.

I feel I am missing something based on all the advice available on this website saying to only go for a variable mortgage.

For one year only fixed I would tend to agree with you. You certainly will not loose a lot by doing so but would not be inclined to fix for any longer.