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Moved to fixed rate - cal I overpay?

  • 27-02-2017 8:49pm
    #1
    onway
    Registered Users Posts: 1,013 ✭✭✭


    I am currently on BOI variable rate 4.25% so I have asked the bank for other options.

    I have been offered
    1 yr fixed - 3.4%
    2 yr fixed - 3.25%
    3 yr fixed - 3.1%
    5 yr fixed - 3.3%
    10 yr fixed - 3.85%

    I have been given the repayment details for each of these but, as I have already been overpaying each month, it appears that I can continue to overpay on a fixed rate? Is this correct and if so, does it seem like a good option?
    (If I continue with monthly payment as is , it should be paid off in 7 yrs)

    Thank you.


Comments

  • #2
    jethrothe2nd
    Registered Users, Registered Users 2 Posts: 582 ✭✭✭jethrothe2nd


    I was in exactly the same position with BoI. On a variable rate of 4.25.% and reluctant to move to fixed rate because I wanted to continue overpaying however they will allow you to move to a fixed rate and continue to overpay once the overpayment is in place prior to changing to the fixed rate. You can stop the overpayment at any time but will not be allowed to reinstate during the term of the fixed rate.

    We increased our overpayment to take into account what we would save by changing and then moved to a 3 year fixed at 3.1%. It took the hassle away from moving to a different bank for a lower variable rate.


  • #3
    onway
    Registered Users Posts: 1,013 ✭✭✭onway


    Thank you. I might do likewise!


  • #4
    newacc2015
    Closed Accounts Posts: 2,379 ✭✭✭newacc2015


    Refinance to AIB/EBS/Haven at 3.1% variable. Refinancing at another bank is an hour or two of paperwork. It is not as time consuming as people think. It can take up to 6 months from phoning up about a refinance to being with a new bank. But is not time consuming from your POV

    I would not fix rates, are not to rise for years. I would fix when there is serious take of a rate hike from the ECB

    OP I found this on askaboutmoney

    http://www.askaboutmoney.com/threads/boi-reduced-my-rate-from-4-5-to-3-3-variable-87-ltv-when-i-told-them-i-was-switching.202757/


  • #5
    onway
    Registered Users Posts: 1,013 ✭✭✭onway


    Thank you newacc2015.
    I really don'y fancy the idea of changing - lazy and all as that may seem - so my logic was that a fixed rate of 3.1% for 3 years is much lower than my current 4.25%.


  • #6
    jethrothe2nd
    Registered Users, Registered Users 2 Posts: 582 ✭✭✭jethrothe2nd


    newacc2015 wrote:
    Refinance to AIB/EBS/Haven at 3.1% variable. Refinancing at another bank is an hour or two of paperwork. It is not as time consuming as people think. It can take up to 6 months from phoning up about a refinance to being with a new bank. But is not time consuming from your POV

    I would like to talk to anyone who has refinanced at another bank with nothing more than an hour or two of paperwork. And if the op can get a fixed rate for the same %, as a variable and still continue to overpay without having to move bank where is the benefit in that?
    newacc2015 wrote:
    I would not fix rates, are not to rise for years. I would fix when there is serious take of a rate hike from the ECB

    What fact is that based on?


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