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Fixed rate mortgages

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  • 04-12-2017 4:42pm
    #1
    kiel1234
    Registered Users Posts: 2 ✭


    My mortgage was drawndown in October 2017. It was a fixed rate mortgage for 5 years at 3.35%.

    I noticed that in November 2017, BOI reduced 5 year fixed mortgages from 3.35% to 3% irrespective of the LTV.

    I assume as an existing customer I automatically receive the benefit of same without any break cost?

    Thanks.


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    #2
    van_beano
    Registered Users Posts: 1,345 ✭✭✭van_beano


    Just my thoughts on it so don't take it as a definite until you hear it officially from BOI.

    I would be thinking that you wouldn't automatically benefit from a change in the fixed rate cuts due to the fact that it's a fixed rate. You are shielded against rate increases for the fixed time but on the flipside you don't gain from any cuts in the rates either. That's why it's called a fixed rate. What you are describing above is a rate that has the benefits of both a fixed rate and variable rate without the downsides of either.

    I could be 100% wrong on this and maybe Bank of Ireland do offer a such rate as this now.     


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    #3
    kiel1234
    Registered Users Posts: 2 ✭kiel1234


    A fair point but why is it therefore applicable to existing customers. Where is the benefit for the existing customer?


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    #4
    van_beano
    Registered Users Posts: 1,345 ✭✭✭van_beano


    kiel1234 wrote: »
    A fair point but why is it therefore applicable to existing customers. Where is the benefit for the existing customer?

    I’ve not read the T&C’s of the BOI offer but maybe by existing customers they’re suggesting those who are currently on variable rates can take up the new fixed rates as opposed to just new customers allowed to avail of the offer.

    I would think for you to avail of the new fixed rates you’d need to pay a fee to break your current fixed rate agreement. The breakage fee would be calculated by the bank.


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    #5
    Bank of Ireland: Sarah
    Closed Accounts Posts: 1,640 ✭✭✭Bank of Ireland: Sarah


    kiel1234 wrote: »
    My mortgage was drawndown in October 2017. It was a fixed rate mortgage for 5 years at 3.35%.

    I noticed that in November 2017, BOI reduced 5 year fixed mortgages from 3.35% to 3% irrespective of the LTV.

    I assume as an existing customer I automatically receive the benefit of same without any break cost?

    Thanks.


    Hi kiel1234,

    Thanks for contacting us on Boards.

    The rate you are on will be the one you have agreed to for your fixed rate period. We'd advise you to check your mortgage documents for this and if you need any clarification on the rate that you are on please give our Mortgage team on 01-6113333.

    Thanks,
    Sarah


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