BOI fix for 3 or 5yrs?

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CCanpbell

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We're coming out of a fixed rate term (3yrs) at a killer rate of 4.89%. BOI have offered the following rates:
Variable - 4.5%
1yr fixed 3.55%
2yr fixed 3.55%
3yr fixed 3.45%
5yr fixed 3.55%
10yr fixed 4.2%

There is only €10 difference between the 3 and 5yr rates. I'm tempted to fix for 5 yrs but maybe 3yrs would make more sense. I don't really want to go to the trouble and expense of moving mortgage as I think it would take too long to realise the monetary benefits. We've been living month to month for the last 3yrs as I had a substantial Loan to pay off and there is now only 2 months left on it so we'll finally have some spare money by November and so moving isn't something we want to do.

So my question, is 5yrs too long to fix for?

Also the rates are for >80% LTV but that's taken from the mortgage amount to the current remaining mortgage which is 81% but the value of the house is considerably more than the price paid in 2010 when the bottom had all but fallen out of the market and the seller was desperate to sell and dropped €65k off his asking price very very quickly when he knew we were interested. Do I have to get a valuation done to get a <80% LTV rate which are more favourable?

Thank you.
 
We are planning to take the 1 year fixed. Not sure the benefit is to tying yourself to a 3 or 5 year rate? When you are just coming out of the pain of the last time you fixed?

Be very much worth looking at moving mortgage also imo.
 
You are being fleeced by BOI who are by far the most expensive provider in the market. All of those rates are horrific.

You should look to switch.
 
Looking at the bonkers, BOI seem to be one of the cheapest at <=60%

1yr 3.4%
2yr 3.25%
3yr 3.1%
4yr 3.3%

The rates you're being offered for <80% seem worse than those on Bonkers

I think if I were you I'd explore the options to switch. I'm on the fence will the rates change much. Everyone seems to be dragging, their heels on it.
 
AlbacoreA said:
Looking at the bonkers, BOI seem to be one of the cheapest at <=60%

1yr 3.4%
2yr 3.25%
3yr 3.1%
4yr 3.3%

The rates you're being offered for <80% seem worse than those on Bonkers

I think if I were you I'd explore the options to switch. I'm on the fence will the rates change much. Everyone seems to be dragging, their heels on it.
Click to expand...

The rates we were offered are for LTV above 80%

Copacetic said:
We are planning to take the 1 year fixed. Not sure the benefit is to tying yourself to a 3 or 5 year rate? When you are just coming out of the pain of the last time you fixed?

Be very much worth looking at moving mortgage also imo.
Click to expand...

If we take the 3yr fixed rate, we'll be paying €150 less a month that previously which is a huge amount in our opinion and takes our mortgage below €1000 for the first time ever. The 5yr rate is only €10 more so €140 less than previous. Its a very manageable amount and I like the idea of knowing what we have to pay each month but on the flip side we don't want to be tied into a fixed rate and then see rates drop but on the other flip side if we only fixed for a year (because the variable rate is simply not an option) and rates change for the worse we might not get as good a rate next year.
 
you can get 3.1% fixed for 3 years if you're <80% LTV, definitely get the house revalued if you think it will facilitate this.

in theory you should look at switching, but having just spent a whole year switching from BOI to AIB I can understand why someone wouldn't want to go through the hassle.
 
I think you just helped me decide definitely against switching. A friend of mine told me theirs took 10 months and yours 12 months which would mean paying the variable rate of 4.5% which is €100 a month in the meantime and is not something I want to do.

I will however ring the bank and speak to them about the LTV price as 3.1% would be well worth paying the €150 valuation fee for. Thank you
 
Just to update this, I rang BOI this morning to enquire about a valuation report in the hope of getting a more favourable rate for 60-80% LTV and the girl I was speaking to asked me to hold while she took a look at our mortgage account. She came back a few minutes and informed me that they were sending out new offers based on less than 80% LTV without the need for us to get a valuation done! The 3yr fixed rate is 3.1% which is competitive compared to others.

I looked into switching to another lender and TBH the difference is so little that its not worth the trouble and possible expense so I think we'll go with a 3yr fixed term and hope that in 3yrs the rates don't change too drastically for the worse.

So in this case, good on BOI, they have my custom for the foreseeable future.
 
Nice one, should give you a fair bit of extra cash each month.

(in fairness to AIB, we were initially switching to Ulster Bank, then after much delay ran into a seemingly unsurmountable problem with life insurance. At that point I went to AIB and switching to them only took a few months).
 
Be thankful you are not with EBS
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So we got our revised rates today and have the same quandary, 3 or 5yrs...

The fixed rates for 60-80% LTV are

1yr =3.4%
2ys = 3.25%
3yrs + 3.1%
5yrs = 3.3%
10yrs = 3.95%

The 3 year rate would see our mortgage drop by over €180 which is bloody brilliant IMO, the 5yr rate is €19 p/m more.
 
Why not switch to another lender?

For example Ulster Bank, who as I understand it will give you €1,500 which should cover the associated costs.

You should get a variable rate of 3.1%, which should fall.

What does your proposed BOI fixed rate revert to after 3 years?
 
Gordon Gekko said:
Why not switch to another lender?

For example Ulster Bank, who as I understand it will give you €1,500 which should cover the associated costs.

You should get a variable rate of 3.1%, which should fall.

What does your proposed BOI fixed rate revert to after 3 years?
Click to expand...

It reverts to the variable rate at that time. The variable rates at the moment are artificially high so as to ensure people fix their rates.

I have no desire to change, from speaking to others its not a simple process, it can be long and drawn out and I simply don't have the time or patience to be dealing with that kind of crap right now. The fixed rates with BOI are favourable compared to UB AIB and TSB, changing for the sake of changing is pointless as there is no financial benefit in it right now. Maybe if we fix for 3 years then in 3yrs time it may make more sense to switch to another lender, at the moment it doesn't.
 
BOI dropped our variable rate to 3.4% when they realised we were switching, so they can do better on variable rates if you want to keep your options open (we switched anyway).
 
I'm happy with the 3.1% fixed rate to be honest. I probably could save a few quid by switching but I don't think its worth the hassle. They were very quick to give us the 61-80% LTV rates without a valuation report when I rang them but I was prepared to pay to get one done as I knew the LTV was considerably less than 80% but they obviously did too.

Anyway, I sent off the form yesterday having opted for 3yrs fixed at 3.1%. It means our mortgage is €183 less a month than it has been for the last 3 years and that's quite a significant amount of extra money in our pocket each month.

Thank you for your advice and help.
 
Currently on BoI variable at 3.8% with LTV approx. 50%. Following on from the above chats I called BoI and requested a rate review. After a few days chasing the pricing team came back and offered a variable rate of 3.6%. You need to be persistent with them and mention you are considering switching. Not as good as the 3.4% variable , but suits our situation for the time being.
 
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