You should definitely do this.Is it possible / common to get approval in principle from multiple lenders
The problem is that even if you have got AIP from a few lenders and completed a few more of the steps, you will then have to instruct your solicitor which lender to try to get full approval (a letter of offer) from. That's because the solicitor needs to engage with the lender on certain matters. It's unlikely that a solicitor would try to get full approval from multiple lenders. You could ask them if they would do that but they might want a higher fee.and then choose closer to when contracts need signing (or whichever step the mortgage cheque needs to be issued at)?
Looking at the monthly repayments is not a good idea. This thread (on a slightly different topic) explains why:I've worked it out that the 2 year fixed with the CB is the best if you calculate it over two years only.
2,219 per month - 3.4%
2,390 per month - 4.1% but if you include the cashback it works out as 2,016 per month
@Paul FThe danger of course is that
a) the rates go up in two years' time
b) you stay on a higher rate once your fixed rate expires
@Paul F if you fix on any lender let’s say at 4% and after your fixed rate is over and the current rate is less than 4%, do you stay on 4 or do you automatically drop too the lower rate ?
You will automatically go to the variable rate regardless of what your fixed rate was or what the prevailing fixed rate will be at the time .
@Pinoy adventure As skrooge says, this is what will happen at the end of your fixed rate – by default you will go onto the lender's variable rate. What @markodaly may have been referring to when he said "a higher rate once your fixed rate expires" is that some lenders' variable rates (BOI's and PTSB's) have been much higher than their fixed rates over the last several years.You will automatically go to the variable rate regardless of what your fixed rate was or what the prevailing fixed rate will be at the time .
AIB fixed rates is at least 1% higher than variable rate so a fairly big difference to start off with.@Pinoy adventure As skrooge says, this is what will happen at the end of your fixed rate – by default you will go onto the lender's variable rate. What @markodaly may have been referring to when he said "a higher rate once your fixed rate expires" is that some lenders' variable rates (BOI's and PTSB's) have been much higher than their fixed rates over the last several years.
It's important to review your mortgage about once a year, which will stop you from going onto a high variable rate at the end of your fixed rate due to not paying attention.
It can sometimes make sense to break out of your current fixed rate and switch to another lender, or to switch to another fixed rate with your current lender. The latter is very easy to do.
If you are considering breaking out of your fixed rate early, first get a break fee quote. Then use this thread to ask for guidance on whether it makes sense to switch.
AIB variable rates are currently less than the ECB lending rate. Do do think that will continue to be the case?AIB fixed rates is at least 1% higher than variable rate so a fairly big difference to start off with.
With the lower rate variable seems to be the one to go for ?
You should definitely do this.
The problem is that even if you have got AIP from a few lenders and completed a few more of the steps, you will then have to instruct your solicitor which lender to try to get full approval (a letter of offer) from. That's because the solicitor needs to engage with the lender on certain matters. It's unlikely that a solicitor would try to get full approval from multiple lenders. You could ask them if they would do that but they might want a higher fee.
So the best you can do is try to get AIP from one or two other lenders (apart from BOI) and complete whatever other steps you can. Then tell your solicitor which lender to go with.
Looking at the monthly repayments is not a good idea. This thread (on a slightly different topic) explains why:
Key Post - How to evaluate if it's worth fixing, switching or breaking out of a fixed rate
Almost every post on this topic is wrong. No matter how often it is pointed out, people look at the wrong figures. They use mortgage calculators when they don't need them. Most of the time, you can do the figures in your head. Do not look at the monthly repayments – they are misleading. Do not...www.askaboutmoney.com
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