Hi all,
We're currently in the process of finalising a mortgage with AIB, and I don't really know whether it's good news or bad news for us, as we'll probably have things finalised/signed before the 1st July.
We're borrowing > 80% of the property and so our only option LTV wise is 3.75% - but this will drop to 3.5% from the 1st July.
Now the 1 year fixed rate we were going to choose was 3.5% (so the same as the LTV will be from July).
Some of you may know already that the SVR rate is no longer available to choose off the bat, and only applies once a fixed rate expires. So can't take advantage of that.
I'm just worried picking a fixed rate now is silly considering the frequent rate reductions. AIB say we can switch to a fixed rate at any time during a LTV mortgage, so surely fixed rates will come down also in due course (or else nobody will choose them as they'll be uncompetitive).
I can't see any other disadvantages to choosing a LTV mortgage over a fixed rate one initially?
All thoughts welcome and thank you for reading.
We're currently in the process of finalising a mortgage with AIB, and I don't really know whether it's good news or bad news for us, as we'll probably have things finalised/signed before the 1st July.
We're borrowing > 80% of the property and so our only option LTV wise is 3.75% - but this will drop to 3.5% from the 1st July.
Now the 1 year fixed rate we were going to choose was 3.5% (so the same as the LTV will be from July).
Some of you may know already that the SVR rate is no longer available to choose off the bat, and only applies once a fixed rate expires. So can't take advantage of that.
I'm just worried picking a fixed rate now is silly considering the frequent rate reductions. AIB say we can switch to a fixed rate at any time during a LTV mortgage, so surely fixed rates will come down also in due course (or else nobody will choose them as they'll be uncompetitive).
I can't see any other disadvantages to choosing a LTV mortgage over a fixed rate one initially?
All thoughts welcome and thank you for reading.