AIB First Time Buyers Package - Rates Opinion.

We are FTB's and have just heard from our broker that we can get the deferred payment option for 3 months through AIB's FTB package.

This is only available on the variable rate. (2.65% LTV > 80% at moment)

He suggests the 1 year fixed rate which is 2.40% after which you switch to the standard variable rate, currently 2.25.

However, you can't have deferred option on fixed rate.

2.65 Variable rate
2.40 Fixed rate
After year 1 of the 2.40 Fixed rate, we would be on 2.25 Fixed rate

What would your opinion be on the above rates?
Obviously it depends on our personal circumstances, ie : what significance not paying our mortgage for 3 months would make to us.

Also, I've gone back to the broker with these questions :
( 1 ) If we go with the variable rate and we want to move to fixed what is the process, ie do we have to put it in writing and also pay for example a €100 to fixed fee….
( 2 ) Is there a way to calculate how much extra interest this will actually cost us if we go with the variable rate?
( 3 ) If after a year we wish to switch to a fixed, what sort of rates would we be looking at? Can we get a figure on that,, or is it possible? And what's the minimum time that we can change from variable to fixed?
( 4 ) What sort of notice is required to switch from a variable to fixed?

Thanks

If you need a 3 month deferred payment at the start of the mortgage, maybe you should hold off on getting the mortgage?

The 2.25% that you revert to, is this loan to value specific? i.e does your loan to value need to be less than 50% in order to avail of this rate?

Do you think you will be overpaying or paying back a lump sum in the first year?

When will you be drawing down the mortgage?

I'm sure your broker will answer your other questions.


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