Switching to shorter term fixed green mortgage

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barbaros

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Right now I am on AIB green fixed with 3.30% interest rate, my 5 year fixed period just re-started from scratch because I switched to lower interest rate. Recently AIB introduced more green fixed rates, especially 3 years fixed with 3.1% interest rate.

Bank says I can switch to Green fixed rate 3 years with 3.1% interest rate with no penalty, but my question is if it would make sense? I believe the main risk is no one knows if interest rates will be much lower or higher after 3 years but I am still wondering if it's "too good" offer to switch from 5 years to 3 years, or is it better to stay on 5 year fixed rate.

Some people say it's a no brainer to switch yet I am still confused.

Thanks!
 
Yeah I am on A2, so I suit to that 3 year old green fixed mortgage. Just worried (or unsure) about if shortening my fixed period for 2 years would be a good idea or not. Minor interest rate decrease from 3.30 to 3.10 is a bonus also.
 
After 3 years you can fix again. Banks generally offer slightly better rates on shorter fixed terms because they are a lower risk to them.
 
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