Fixing Mortgage

mmc2010

Hello, I'm thinking of fixing my mortgage and wanted to get your opinion. Fixed interest rates are really low at the moment which is leaving me suspicious that variable rates may also drop in the near future. My current rate is 2.95% with AIB. If I fix with them for 5 years, it brings it down to 2.55%, which is obviously an attractive proposition. I would also like to reduce the term and increase the repayments, to pay it off faster. This will come with its own risks but may be worth it. Do you think its a good deal or more of an indication of what the variable rates will do?

L1011

Long term ECB rates are likely to stay the same or potentially even go negative; and there's a new player entering the market imminently (albeit apparently targeting public sector workers, just like the reborn ICS does) so I wouldn't be suprised by a slight reduction in rates by all the big players in the next while; so 5 is quite a hefty fix.

kenmc

Ulster Bank have (or had) a 2.2% 5 year fixed, I moved to it a couple months ago. Haven't seen anything else come close to that, so was happy to fix for the 5.

mmc2010

2.2% is really good alright.

AnRothar

5 is quite a hefty fix

We fixed for 5 years 18 months ago as we needed certainty of costs for the next few years.


This certainty was the only reason for us.


O/H was out sick and employer would not sign salary cert so switching was not an option for us.

L1011

Avant have now come in at 1.95% for people on very solid LTV - I would expect a slight shuffle in similar LTV rates by other banks now.

Geuze

Yes, AIB responded today.

https://www.askaboutmoney.com/threads/aib-the-first-to-cut-rates-in-response-to-avant.219751/

Geuze