Current Mortgage Rate expiring

Hi there,

I bought a house last year at around 250,000 my current mortgage was a 1 yr fixed FTB @ 2.8%. I'm currently paying €882 per month


The bank have given us a choice of new rates:



Description RATE Estimated repayment
======== ======= =================
H/L VARIABLE LTV > 80%<500K vrp5 3.350% €949.20
2 YEAR Fixed (PDH) 4.950% €1,170.62
3 YEAR Fixed (PDH) 5.450% €1,244.15
5 Year Fixed (PDH) 6.050% €1,334.84

Haven't got a notion about any of this at all.... i don't even know what the first one means other than it is a smaller rate than the rate..

Just wondering if anyone has any opinions and if they can help me with the first line description?

Thanks in advance,

the_mada

The first line H@L probably just means Home Loan - Loan Variable rate based on the Loan to Value (LTV) ratio on your house beeing greater than 80% and the loan amount being less than 500k. The rate is 3.35%

Assuming it's BOI (going by the rates) - it looks likely that that variable rate will be rising in the next few weeks at least by 0.25% - maybe by 0.5%

If it was me - I would go for the variable rate - but try to put some regular cash aside in a savings account as well to prepare for future increases.


See more mortgage rates at www.*****************.com - but there is no chance of you being able to switch to another lender at this stage.

Hi irishlinks,

Thanks for replying... yeah it's BOI...I'm thinking variable also.

Fixed or Variable rate?

I'm in the exact same position. I got that letter two days ago, and just off the phone with a Bank Of Ireland agent.

The variable rate rises to 3.9% in two weeks. It's still a saving on the 2 year fixed term. The question is, how probable are more rises to the variable interest rate.

My reasoning is: Bank of Ireland are in the red and need to raise revenue. They more than likely will raise the variable rate in the next 24 months.

The ECB has stopped raising their rate (a contributing factor to what BOI will charge for a variable rate). So at least that pressure has subdued for now.

So from the two points above, I'm been optimistic and reckon BOI won't rise the variable by more than 1% in the next 12 months, so I'm going with variable.

Hate the idea though. Had a fixed rate of 2.4% for the last two years. Goodbye good times