Key Post I have an AIB tracker – should I consider fixing?

1) Existing tracker margin. ECB + 0.85%

2) If you have an additional mortgage on the same property, what is the rate? NO

3) Amount outstanding on your mortgage €114, 500

4) Remaining term 12 YEARS
5) Lender AIB
6) Value of your home €800,000
7) Might you trade up or overpay your mortgage? NO
8) Do you face any barriers to switching? NO
9) What rates are you considering fixing at? UNSURE
10) Does your house have a high BER rating which might qualify it for a lower rate? NO
11) How well could you handle a further 2% rise in the ECB rate? Just about manageable short term.

Thank you for any advice.
 
You will shortly be paying 5.1% (ECB 4.25% + 0.85%)

Here are the main options for fixing with AIB

1691579301087.png
By fixing for 5 years, you would save 0.45%

If ECB rates rise further, you will save a bit more.


Let's say you fix at 4.65% and the ECB rate falls to 3%. You would be paying 4.65% instead of 3.85%.

While it is very difficult to forecast interest rates, in the medium term, I think that there is more scope for rates to fall than to rise.

So, on balance, I think you should stick to your tracker.

Brendan
 
1. Split mortgage.
1A. Ecb Tracker now at 6.25%
1B. Fixed at 2.35%. This rate ending in June 2024.
2. Outstanding.
Tracker: €151000.
Other: €38000.
3. Remaining term.
Tracker expires March 2043.
Other expires March 2035.
4. Lender AIB.
5. Value. €500k+
6. We might try to overpay our loan. Yes.
7. Barriers to switch. No.
8. What rates fix at. Don't plan on fixing.
9. BER rate is pretty poor.

Hi Brendan,
Please see above.
We are barely making ends meet atm.
Any advice please.
Thanks.
 
Last edited by a moderator:
Neevis said:
1A. Ecb Tracker now at 6.25%
Click to expand...

So you are on a rate of ECB +1.75% ? Is that correct?

This is not a very valuable tracker, so you should not worry about giving it up.

Your LTV is <50% , so here are the rates available to you.

1707994560830.png

These rates are odd as are all mortgage rates. The variable rates should be lower than the fixed rates in a period when market rates generally are expected to fall.

So I would expect the fixed rates to fall but there is no guarantee.

A variable rate below the ECB rate makes no sense so maybe this will be increased.

But, on balance, I would just switch the tracker bit to the variable rate.
 
Last edited:
Brendan Burgess said:
So you are on a rat of ECB +1.75% ? Is that correct?

This is not a very valuable tracker, so you should not worry about giving it up.

Your LTV is <50% , so here are the rates available to you.

View attachment 8450

These rates are odd as are all mortgage rates. The variable rates should be lower than the fixed rates in a period when market rates generally are expected to fall.

So I would expect the fixed rates to fall but there is no guarantee.

A variable rate below the ECB rate makes no sense so maybe this will be increased.

But, on balance, I would just switch the tracker bit to the variable rate.
Click to expand...
Hi Brendan, yes it's ECB + 1.75%.
Thanks for the advice, appreciate it.
 
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