Hi Folks,
I recently applied to AIB to switch my mortgage from BOI (which was 125K over 20 years at 4.1% when drawn down in Q4 2014). My application was provisionally approved by AIB and now I just have to provide the solicitors details etc. but AIB offered a mortgage of 119k (the amount remaining) over 23 years.
Since I have about 18 years remaining with BOI at 4.1%, does anyone know where AIB got the period of 23 years from? I can call them to ask but I am wondering if it is an advantage or disadvantage to increase the term on the mortgate when switching?
I hope to avail of a lower rate of 3.1% with AIB but I am wondering what the significance of the longer term is? Perhaps I should go with the 23 year term and just overpay the mortgage? Are there any catches with their proposal?
Thanks,
tea4one.
I recently applied to AIB to switch my mortgage from BOI (which was 125K over 20 years at 4.1% when drawn down in Q4 2014). My application was provisionally approved by AIB and now I just have to provide the solicitors details etc. but AIB offered a mortgage of 119k (the amount remaining) over 23 years.
Since I have about 18 years remaining with BOI at 4.1%, does anyone know where AIB got the period of 23 years from? I can call them to ask but I am wondering if it is an advantage or disadvantage to increase the term on the mortgate when switching?
I hope to avail of a lower rate of 3.1% with AIB but I am wondering what the significance of the longer term is? Perhaps I should go with the 23 year term and just overpay the mortgage? Are there any catches with their proposal?
Thanks,
tea4one.