PPR AIB ECB+.75% InvestProp AIB ECB+1.1%, Switch to fixed, shorten term or stay as is

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ben12

Guest
I have two mortages with AIB and both are on tracker rates.

My ppr rate is ECB+.75% and the investment property is ECB+1.1%. Both are on interest only but my ppr reverts back to capital and interest repayments next month.

Loan of 125k on each of the properties over 20 years.

I have 20k to put against the mortages and would like to shorten the term to 15 years.

I was also thinking of fixing them for 3-5 years.

Any advice appreciated.Thanks.
 
Re: fix or stay on tracker?

hi im not sure about the tracker on ur ppr . ecb +.75% is a good offer and standard var rates are min 2.25% . on the investment ecb +1.1% seems like a very good rate for an investment . . do you know what aib are offering on for fixing ?
 
Re: fix or stay on tracker?

I would stick with the trackers.
Moving to a fixed rate will mean you lose the trackers for good and go on to variable rate after the fixed period - which will probably be above the tracker rate.
Even if ECB rates go up by 2% you will still be better off on your trackers.
AIB ppr 5 yr fixed rate is 3.86% ( 2.11% more than your tracker).
Best AIB investment 3 yr fixed rate is 3.99% (1.89% more than your tracker).
Why pay out more straight away - for a possible short term saving if ECB rates rise by more than 2% pretty quickly.
If you can afford the extra repayments at those fixed rates - why not just put that extra into a savings account instead and then dip into it if your tracker rate rises.

www.*****************.com
 
Re: fix or stay on tracker?

Thanks for that irishlinks.With the banks about to raise their rates I think it is better to stay with the trackers.
 
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