Stuck with BOI

Rob F

Registered User
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We took out our mortgage 2009 with BOI the LTV was less that 75% our current variable rate is 4.05%, (which seems good for BOI from what I have read). I changed jobs within the education sector last year so am a year and a half away from a CID (permanent) contract. When I spoke to KCB to move but they did not want to know until I had a CID, so I am stuck with BOI for now. My Question is, as BOI have been poor at passing on ECB rate cut should I fix for a year at 3.8% or stay on my current variable rate and hope it drops?
 
It's an impossible question for people to make a call on what way rates will go. You have to make your own decision by weighing it up.

That said, personally with so much media attention and KBC eager for business, I would say there's a good chance of a rate drop. We know already that some banks have dropped rates for customers who 'hint' or make a move to switch.
 
Thanks Bronte, I know I'm looking for a crystal ball answer. I'll give BOI a call threatening to move and see what happens. I've read a few posts that suggesting that rates will fall, I'm just worried that BOI will not pass on to existing customers if they do drop rates, they have a bad record.
 
That call is an excellent idea. You need to act as though KBC will take you. Be prepared. Don't tell them KBC will only take you in a year etc.
 
I'm with BOI on the same rate - all they would offer me is 2 yrs fixed @ 3.8% and they wanted a valuation to confirm LTV. It would have taken about 6 months for the savings to pay for the valuation and I don't like the idea of fixing so I've held off for now...
 
BOI got back to me with the same as shweeney offering 2 yrs @ 3.8%. They said the 3.7% for 1 yr, is new business only. No movement on the variable rate.
 
There seems to be a build up of pressure on the banks to reduce variable rates.

No one knows, but it seems wrong to fix when variable rates are expected for fall.

Brendan
 
Would consider fixing for 1 year @ 3.7%, as i think BOI will continue to be slow in lowering their rates, but wouldn't for 2 years.
 
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