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Fixed Rate Mortgage Ending

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  • 27-01-2015 12:05am
    #1
    carltonleon
    Registered Users Posts: 1,178 ✭✭✭


    My 5 year fixed rate mortgage is coming to an end in March. The rate I was on was 3.86% and my LTV is less than 50%. Just looking for some advice on what to do ? Should I fix again or go with the LTV variable? I know that nobody can tell me what to do (apart from my wife, obviously) but I am just looking for some advice from people with a better knowledge of these thing than me. I am with AIB for my mortgage.

    Thanks in advance


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    carltonleon wrote: »
    My 5 year fixed rate mortgage is coming to an end in March. The rate I was on was 3.86% and my LTV is less than 50%. Just looking for some advice on what to do ? Should I fix again or go with the LTV variable? I know that nobody can tell me what to do (apart from my wife, obviously) but I am just looking for some advice from people with a better knowledge of these thing than me. I am with AIB for my mortgage.

    Thanks in advance

    AIB are offering 3.90% for a 5 year fixed at the moment to existing customers. You need to check what loan to value variable rate they will offer you. If you decide to move your mortgage you can get as low as 3.60% LTV mortgage.


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    #3
    Heisenberg1
    Closed Accounts Posts: 2,511 ✭✭✭Heisenberg1


    OP as your are coming of a fixed rate with AIB you can choose the less than 50% variable rate you would need to get a valuation done on your home. The less than 50% LTV is 3.85% IMO I would choose this as its a good rate and gives you reflexabilty down the road. Or as Trish56 has said you could switch KBC are offering a switcher deal at the moment.


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    #4
    carltonleon
    Registered Users Posts: 1,178 ✭✭✭carltonleon


    Thanks for the advice.
    3.90% sounds like a good rate and is only .04% above what I am paying at the moment. I know what you are saying about flexibility but my feeling is that the rates cannot get any lower so will only go up. I think that it is unlikely that I will be able to pay any sort of lump sum off my mortgage in the next 5 years so I am thinking that possibly fixing is the way forward for me.


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    #5
    Heisenberg1
    Closed Accounts Posts: 2,511 ✭✭✭Heisenberg1


    I wouldn't be so sure of rates rising in the medium term AIB have priced there fixed rates more favourable than their variable rates which may indicate that they are forecasting a further fall in rates. The 2 fixed is 3.80% good value and isn't a long time so if rates do fall over next year or two you would be in a good position. That's just my 2 cents worth I'm looking at the 2 year fixed myself but I haven't made a decision yet.


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    #6
    carltonleon
    Registered Users Posts: 1,178 ✭✭✭carltonleon


    Thanks Heisenberg1.
    That is certainly an option that I will look at and as you say gives a bit of flexibility.


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    #7
    Heisenberg1
    Closed Accounts Posts: 2,511 ✭✭✭Heisenberg1


    You might want to wait fixing.

    http://www.independent.ie/opinion/columnists/charlie-weston/bankers-face-day-of-reckoning-over-mortgagerate-apartheid-30991509.html


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    #8
    deeks
    Registered Users Posts: 552 ✭✭✭deeks


    Heisenberg1 wrote: »
    You might want to wait fixing.

    http://www.independent.ie/opinion/columnists/charlie-weston/bankers-face-day-of-reckoning-over-mortgagerate-apartheid-30991509.html

    I imagine there's a lot of people (like myself) will be watching how this develops with great interest. A game changer if the decision is upheld.


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    #9
    fmlarnapairce
    Registered Users Posts: 188 ✭✭fmlarnapairce


    Indeed, I am in the same position, have the letter signed to fix for 2 years on 4% with BOI (rather than my 4.35% variable), but can't decide whether to fix or not. Does anyone know any more about the challenge to danske bank and if any findings there would cause other banks to cut interest rates?


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