Switch now or wait for the review in September

That looks like a change of BOI policy to me - it probably makes sense to switch provider at this stage, unless you are happy to fix for that term.
 
Well what would you do in this scenario. At the moment we pay into a joint account 1666 a month. The mortgage repayment is 1340 a month which is an overpayment of 326 a month. At the moment this money is in the account and not overpaying a mortgage. We only started mortgage at the end of last year and wanted to see how we got on making overpayments, so far so good.

So the question is this and maybe it's a stupid one should we overpay our mortgage at 4.5% by 326 a month or should we lock in at a fixed rate of 3.75% where would reduce our monthly payments to 1227 a month and thereby increase our monthly savings to 431 a month. At the end of 2 years we'd have a lump sum of 10,344 euro or after 3 years 15516 which we would then take off the mortgage!
 
random10 said:
Well what would you do in this scenario. At the moment we pay into a joint account 1666 a month. The mortgage repayment is 1340 a month which is an overpayment of 326 a month. At the moment this money is in the account and not overpaying a mortgage. We only started mortgage at the end of last year and wanted to see how we got on making overpayments, so far so good.

So the question is this and maybe it's a stupid one should we overpay our mortgage at 4.5% by 326 a month or should we lock in at a fixed rate of 3.75% where would reduce our monthly payments to 1227 a month and thereby increase our monthly savings to 431 a month. At the end of 2 years we'd have a lump sum of 10,344 euro or after 3 years 15516 which we would then take off the mortgage!
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What's your LTV?

If it's low enough, switching to KBC will get you an effective variable rate of 3.5% and the ability to re-draw any accelerated capital repayments should the need arise. Nobody can predict future interest rates (and therefore nobody knows in advance whether fixing a rate for any particular period will turn out to be a smart move) but there is definitively no point building up excess amounts in a deposit account if you're paying more than double the interest rate on your mortgage.

If I was in your position, and I could get an effective variable rate with KBC of less than 3.75%, I would switch without hesitation.
 
At the moment 81%. Lev but with a lump sum payment or new valuation of property we could get it under 80%
 
At an 80% LTV you'd get down to a 3.6% variable rate with KBC, including their current account discount. It almost certainly won't cost you anything to switch - KBC will give you €2,000 to switch plus discounted home insurance for a year - you will actually probably make a few bob on the deal.

If I was in your position, I'd switch to KBC in a heartbeat but don't hate me if interest rates subsequently rocket and you wish you had fixed! I don't expect that to happen - but then a few years ago I didn't expect to see the ECB repo rate fall as low as 0.05% so I am no better a predictor of interest rate movements then anybody else.

Whatever you do, get yourself off BOI's SVR, pronto!
 
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Zane99 said:
So I got a return call today. They won't reduce my SVR . They came back with an offer of 3.6 fixed for two or 3 years . It's just like the letter they sent out.
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Looks to me like BofI have now called the Ministers bluff and will not move on SVR. So if I were you I'd take the fix of 3.6.
 
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