Key Post In the light of the recent rate cuts, should I fix my mortgage rate?

elcato said:
As regards the last two posts, have you read this post ? Might be worth a shot.
Click to expand...

Hi elcato

Apparently, Carmel did not actually get a lower rate from BoI. I have asked her for clarification, but in the meantime, I have edited the title of the thread so as not to mislead people.

Brendan
 
Im with EBS on SVR of 4.33%. Current Fixed rate is 3.80% for 2 years. Thats nearly 90 euro a month less in payments.
Im about to pull the trigger and go for the fixed... Anyone got advice?. EBS are slow to change rates and it could be another year before they drop..

I cant see SVR dropping below 3.8% anytime soon. I think for someone on the standard SVR it makes sense to fix on this rate as the drop is significant?
 

My wife and I also are in this position. I think we will fix shortly. I just hope they dont drop all the rates again. Though its hard to see the SVR dropping much in 2 years and they might only do it for new customers to attract switchers!
 
i agree. Its too much of a drop to give SVR existing business. Would love to hear other peoples thoughts.
 
What is your LTV?

AIB/EBS allow people on SVRs to move to the LTV mortgages.

I think it's likely that competition will heat up in the market over the next two years. You will be stuck with AIB if you fix. If you have a high LTV mortgage and wont' be able to switch lender, then maybe this is worth fixing.

But in the past, most decisions to fix, turn out to be wrong. I expect general rates to fall , but maybe the scope for falling is limited.

Brendan
 
Thanks for the response Brendan!
Based on current market value i am likely in the 85-90 LTV range. Sounds like i should be grabbing the fixed rate based on what you have said.
 
FYI I asked EBS to move me to LTV >80 rate of 4.2 a few weeks ago and they said no. They stated that when I took out the mortgage there were no LTV products and I will be staying on SVR.
 
Hi Techhead

You should ask again as you were misinformed. I presume that EBS does not have a different policy to AIB?

Brendan
 
I'm also on SVR with EBS, in negative equity. Very tempted by their 2 year fixed@ 3.8%. Will the new measures (QE) announced today by the ECB mean banks might reduce SVR rates further?
 
+1 another on SVR with EBS. Very tempted too with the 2 year fixed @ 3.8%. As per Toby's post what are people's thoughts on the SVR coming down over the next 2 years?

Cheers
 
Thanks for the clarification Brendan. As usual EBS is a separate bank when its suits them
 
We have a very low LTV (approx 25 to 30%) but still have approx 7 years of repayments to make. We have a split mortgage. 50/50.
half is SVR, the other half is a product called SURPLUS BUILDER (it is a discounted SVR, based on a 'savings' scheme incorporated into a level term assurance life policy via Ark Life).

We currently operating on 1 salary and its hard, so I need to make the correct financial choices.
I'm worried AIB may be sold as I keep hearing murmurs of this. I'm frightened this would leave us with little control over the new owners/parent company who could (in theory) do what they like with rates for existing customers!
Is it worthwhile fixing in this scenario?
What do you think about possible future ownership of AIB?

Any advice greatly appreciated.
I've no idea what other extra costs I'd have to pay if I switched plus I don't know if I'd need a new life assurance policy (that'd cost a small fortune in view of my age). Because of low LTV, not sure if I'd gain much by switching now. Considering it more for 'peace of mind'.
 
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