BOI reduce fixed rates - should I fix?

B

brickhouse

Registered User
Messages
8
Hi,
I'm a variable customer on 4.35% with boi.
My mortgage was 230k over 25yrs, how will this effect my repayments if I opt for the 2year fixed deal of 3.6%
 
Google is your friend - you could have found this out as easy as typing in the message into this forum !

Original repayment = 1259 euro a month @ 4.35%
Revised repayment = 1164 euro a month @ 3.6% for 2 years

difference is 95 euro a month for 24 months = 2280 (all other things remain equal)
 
You're locked for 2 years when rates might drop further. Euro average is around 2%
 
Cilar said:
You're locked for 2 years when rates might drop further. Euro average is around 2%
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Apart from AAM most media seem just to publish press release from Bank of Ireland without much comment. I thought i saw somewhere that in order to qualify for certain fixed periods your property had to be valued in excess of the Loan.
 
trojan said:
Apart from AAM most media seem just to publish press release from Bank of Ireland without much comment. I thought i saw somewhere that in order to qualify for certain fixed periods your property had to be valued in excess of the Loan.
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The new fixed rates only apply to mortgages with a loan to value (LTV) ratio of less than 80%.

These loans are less risky from a lender's perspective than mortgages on properties in negative equity and therefore they will compete for this business and offer more attractive terms to borrowers.
 
Cilar said:
You're locked for 2 years when rates might drop further. Euro average is around 2%
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It will be a very long time before Irish banks are in a position to offer loans at rates that are comparable with average new lending rates in Eurozone given the level of non-performing loans in their back book.

You are of course correct that lending rates could fall over the two-year fixed period. Equally, they could rise over the next two years - who knows?

I would have thought a two-year fixed rate of 3.6%, as against 4.35% SVR, was pretty attractive. Of course if a borrower wanted to stay on a variable rate, they could switch to KBC who have an effective rate of 3.55% at that LTV.
 
An other option is to get BOI to reduce your variable rate which they did for me.
They are offering variable rates as low as 3.6%
 
Brendan Burgess said:
No. People in deep negative equity can avail of BoI fixed rates as well.

http://www.askaboutmoney.com/threads/bank-of-ireland-trims-fixed-rates.194182/#post-1432838
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Apologies, my mistake - I should have said the 3.6% rate only applies at the lower LTV.

It's strange that BOI didn't highlight the fact that the 3.7% 2 year-fixed rate can apply to those in negative equity in their press release. That looks like a reasonably good deal to me in those circumstances.
 
Clonback said:
An other option is to get BOI to reduce your variable rate which they did for me.
They are offering variable rates as low as 3.6%
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Absolutely. I wonder will BOI publicise the fact that they will offer a variable rate of 3.6% in certain circumstances and whether KBC (or another lender) will re-act by reducing their low LTV rates.
 
I thought it seemed fairly ok.
I don't really envisage them reducing the standard variable to those sorts of rates and if they do it could be closer to the end of the 2 year period anyway.......
might give them a call on tuesday.
 
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