Moneymakeover 6 years to go should I switch mortgage?

D

dogdayafternoon

New Member
Messages
4
Hi! My mortgage is now on a variabe rate with AIB bank. i have less 6 years left to pay. The variable rate is 3.75% (€1200 pm).
I have the opportunity to switch with them to slightly lower fixed rates at about 3.3% should I do this? Or leave it variable? Also, is it worth 'remortgaging' my house for the tune of €50k if I wanted to invest it in something, since this feels like a better loan repayment value than getting a Credit Union loan for €50k at much higher interest rates? (I am the sole payer on the house)
 
What is the balance on your mortgage? c. €80,000

If you reduce the rate by 0.45% , you will save about €300 in the first year, and this will reduce each year as you pay off the capital.

Are you likely to make capital repayments in excess of the monthly repayments? If so, then leave it variable.

If you are not going to repay it early, then fix the rate.
 
dogdayafternoon said:
is it worth 'remortgaging' my house for the tune of €50k if I wanted to invest it in something,
Click to expand...

Have you asked AIB? They won't give you a top up mortgage of €50k for an investment.

I don't think you will be able to switch either and if one of the new lenders e.g. MoCo does give you the additional €50k, the legal costs of switching will reduce the savings.

So if you are going to make this investment, then you will not be overpaying your mortgage, as you should be overpaying your more expensive loan first, which again argues for fixing the rate.
 
Brendan Burgess said:
Have you asked AIB? They won't give you a top up mortgage of €50k for an investment.
Click to expand...
Hey Brendan thanks for quick reply. They might give me 50k for home improvements, so paying off a much lower loan interest rate overall ? Or you dont think they would do this with so little left to go? (yes 80k to go)
 
If you are borrowing it for home improvements, topping up your mortgage would be better than going to the Credit Union.

But if you tell them it's for home improvements and you use it to invest, do they not have some way of checking?
 
I read this as investing in solar panels etc . Some people use the word invest when it’s improving their home, esp when it saves money in long run.
 
Khublei said:
I read this as investing in solar panels etc . Some people use the word invest when it’s improving their home, esp when it saves money in long run.
Click to expand...
Thank you Khublei, thats what I meant! Anyway, I have just moved to the fixed 2 year rate today since I may procrastinate for who knows how kong before i get anyimprovements made!Thanksfor all the help guys :)
 
You must log in or register to reply here.
Back
Top