Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Fixed mortgage rate vs Variable

  • 03-02-2017 12:31pm
    #1
    Caher123
    Registered Users, Registered Users 2 Posts: 22 ✭


    Hi,

    I currently have a variable BOI mortgage rate which is 4.05% and looking to switch.

    BOI have offered me a number of fixed options, one I'm considering is 3 year fixed at 3.1%. I'm wary of a fixed rate though and wonder if I should take the plunge and switch to a cheaper variable. Possible KBC 3.3% or AIB 3.3%. I've read a bit about KBC potentially exiting Ireland(?).

    Would you fix at 3.1% or switch to variable 3.3%?

    Thanks!


Comments

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


    If you switch to either KBC or AIB/Haven will give you 2k cash back of which 1k will go towards legal fees to move and you will also have to complete an application and submit evidence of income and bank accounts to the new lender. KBC also offer an extra 0.20% if you open a current account with them.
    Disadvantages in fixing is that when you come out of that fixed rate in 3 years time will interest rates have increased ? highly unlikely but possible. Also Bank of Ireland's standard variable interest rate is 4.50% and should your circumstances change in the 3 years as in ill health, redundancy etc. you are stuck with BOI variable interest rate.
    AIB/Haven at least have passed on all reductions from ECB to their customers unlike BOI and KBC.


Advertisement