Variable or Fixed - Need Help!

Philomena

Hi guys,

I am getting my first mortage and had orginally agreed to a 5 year fixed rate with First Active and I am about to close the sale but now think that I should go for variable. Unfortunately the variable is a higher repayment.

(Buying the apartment through the affordable housing)

Which of the following do you think I should go for?

Variable repayment after tax relief - €1,166 or
5 year fixed rate after tax relief - €1,140

Would appreciate any advice thanks

The_Conductor

We need more information- for example- what percentages are being offered, whether there are penalties to switch from fixed to variable, etc etc.

The absolute sums being paid seem fine- but its entirely possible that you may be able to negotiate a better deal out of them- only we don't have enough information to comment on it here.

jetski

Philomena wrote: »

Hi guys,

I am getting my first mortage and had orginally agreed to a 5 year fixed rate with First Active and I am about to close the sale but now think that I should go for variable. Unfortunately the variable is a higher repayment.

(Buying the apartment through the affordable housing)

Which of the following do you think I should go for?

Variable repayment after tax relief - €1,166 or
5 year fixed rate after tax relief - €1,140

Would appreciate any advice thanks

Similar situation myself.

congrats on the house!

I went with

2/3 Fixed

1/3 Tracker

All the best

Philomena

smccarrick wrote: »

We need more information- for example- what percentages are being offered, whether there are penalties to switch from fixed to variable, etc etc.

The absolute sums being paid seem fine- but its entirely possible that you may be able to negotiate a better deal out of them- only we don't have enough information to comment on it here.

Sorry didn't give enough information:

Borrowing €220,000 from First Active over 28 years (Buying the apartment through the affordable housing)


5.9% for 5 year Fixed
6.3% Variable

Which do you think I should go for?

Would appreciate any advice thanks

Philomena

jetski wrote: »

Similar situation myself.

congrats on the house!

I went with

2/3 Fixed

1/3 Tracker

All the best

Hi jetski,

Congratulations to you too and thanks

The_Conductor

Philomena wrote: »

Sorry didn't give enough information:

Borrowing €220,000 from First Active over 28 years (Buying the apartment through the affordable housing)


5.9% for 5 year Fixed
6.3% Variable

Which do you think I should go for?

Would appreciate any advice thanks

The rates seem very high, if you don't mind me saying.
BOI are currently 5.9% variable, 5.5% fixed (according to their website) (trackers don't seem to be available anywhere though).

Personally I'd go for the variable rate- as the difference between the variable and the fixed is only .4% and rates are widely expected to fall (though how far and how long is anyone's guess).

I really don't think the rates you are being quoted are competitive- have you shopped around?

The_Conductor

AIB have a one year fixed rate of 3.25% for first time buyers (link here)

Seriously- make sure that you get as good a deal as possible. The rates from First Active do not appear to be competitive at the moment.........

Philomena

smccarrick wrote: »

AIB have a one year fixed rate of 3.25% for first time buyers (link here)

Seriously- make sure that you get as good a deal as possible. The rates from First Active do not appear to be competitive at the moment.........

I went through a broker and she said that this was the best she could get for me. Cant go through AIB unforunately as its affordable housing.

Thanks for the advice