Hi,
I have narrowed down my mortgage options to AIB and BOI (best rates available) and have been approved by both, however I want some advice on who I should go with and how long I should fix for.
My options are as follows;
AIB - 3 year fixed at 3.89%. This is the best three year rate available however it wont be fixed until I draw down the last payment (its a self build) in ~ June 2011. If I go with this, what do you think the maximum their 3 year rate could be in June (I assume it will have gone up by then). After the three years I would move onto their standard variable rate (3.25% at present). Not fixing now might also be a benefit as I could re-asses the economic climate in 6 months time?
BOI - 2 year fixed at 3.4%. This is the best 2 year rate at the moment and I can fix straight away...however is 2 years long enough given the current climate. What could we expect the variable rate to be in December 2012? Again I would be going onto their standard variable rate at the end of the fixed term (3.35% at present)
BOI- 3 year fixed at 4.04%. This might give me the reassurance of getting on a 3 year rate immediately, however its higher than AIB which is putting me off
I have started my self build and therefore need to get this sorted pretty soon as the builder will be looking for first payment soon. I'm a little further down the track with AIB than with BOI wrt submitting documentation etc. BOI also insist on an independent valuation
I'm not comfortable going with a 5 year fix as the difference at present is €200 PM and 5 years is a long time
Any advice anyone has one this would be appreciated.
I have narrowed down my mortgage options to AIB and BOI (best rates available) and have been approved by both, however I want some advice on who I should go with and how long I should fix for.
My options are as follows;
AIB - 3 year fixed at 3.89%. This is the best three year rate available however it wont be fixed until I draw down the last payment (its a self build) in ~ June 2011. If I go with this, what do you think the maximum their 3 year rate could be in June (I assume it will have gone up by then). After the three years I would move onto their standard variable rate (3.25% at present). Not fixing now might also be a benefit as I could re-asses the economic climate in 6 months time?
BOI - 2 year fixed at 3.4%. This is the best 2 year rate at the moment and I can fix straight away...however is 2 years long enough given the current climate. What could we expect the variable rate to be in December 2012? Again I would be going onto their standard variable rate at the end of the fixed term (3.35% at present)
BOI- 3 year fixed at 4.04%. This might give me the reassurance of getting on a 3 year rate immediately, however its higher than AIB which is putting me off
I have started my self build and therefore need to get this sorted pretty soon as the builder will be looking for first payment soon. I'm a little further down the track with AIB than with BOI wrt submitting documentation etc. BOI also insist on an independent valuation
I'm not comfortable going with a 5 year fix as the difference at present is €200 PM and 5 years is a long time
Any advice anyone has one this would be appreciated.