Sold House / Buying Again with New Mortgage

M

MoneyBall2020

Registered User
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Hi folks ,
I sold up last year and decided to rent a property to see if I would like a potential new area . I'm hoping something will come up in area soon but have a few questions.

When applying for AIP or new mortgage I don't know the amount I'll need. My LTV will be about 40% and probably looking to get either a 120k 10 year mortgage or 150k over 15 years.

When applying should I submit an AIP for both options ? Or just the higher one ?

I'd like to keep my monthly repayments below 1200 but with the potential of overpayments aswell.

I currently bank with AIB and it seems like there is an issue with 5 year fixed rate with overpayments but maybe it's not important if it's only 10 year mortgage ?

I've had a look at brokers comparisons site but should I still apply for as many AIPs as possible ?


Sorry I know there is multiple questions but with the potential variance in the amount I'm just wondering would any lender be better for 10 year mortgage ? Or what else should I consider when choosing the lender ??
FYI .purchasing on my own
 
MoneyBall2020 said:
75k / 44
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In your shoes, I'd apply for the higher amount, over 15 years. Well inside normal retirement age. Gives you flexibility when you're looking.
When you find a house and get to formal application, you can shorten the term at that stage.
 
MoneyBall2020 said:
I currently bank with AIB and it seems like there is an issue with 5 year fixed rate with overpayments but maybe it's not important if it's only 10 year mortgage ?
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There is a quirk with AIB's 5-year fixed rate that means that you will be able to make unlimited overpayments without penalty for the foreseeable future.

MoneyBall2020 said:
I've had a look at brokers comparisons site but should I still apply for as many AIPs as possible ?
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Get AIP from at least two lenders – maybe more. Rates could easily rise before you draw down.

You only need a broker if you want a mortgage from Avant or Haven. But note that Haven are very slow, at least for people who are switching their mortgage.

Here are the rates you are eligible for. (Ignore the rates marked ">€250k".) Since you planning to overpay, I would lean towards 4- or 5-year fixed rates. BOI and PTSB offer cashback on some of their rates. (So do EBS on their non-green rates, but they are slow at the moment.) Note that AIB's rates are slightly lower than the ones shown in this table if your LTV is 50% or less.

1673285739054.png


You could try to get a €250k mortgage in order to be eligible for the lower rates :D That would put you into a higher LTV bracket, so you'd need to look at a different rates table. PTSB (but not BOI) will still give you cashback. Then you could make a lump-sum overpayment shortly after you draw down (assuming the break fee is modest).
 
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Thanks for feedback.
Got initial quote from AIB for 5 year fixed of 3.25% for the max request ...so I'll try a few others
 
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