Bank of Ireland cuts Fixed Mortgage Rates - November 2017

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Sarenco

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Bank of Ireland now offering one, two, three and five year fixed-rate mortgages at 3%, irrespective of LTV.

 
Quick calc in my head - with cashback these would be cheapest fixed rates available for those terms, with exception of those that qualify for UB 4 year rate?
 
Would fixing for 5 years at 3% be a good idea. Approved with BOI (none of the other lenders with low variable rates would look at us) and had decided to fix at 3.2% for 3 years but now with this reduction I am seriously considering the 5 year fixed rate.
 
Personally, I think BoI's five-year fix @3%, with 3% cash-back, looks pretty compelling in the current environment, particularly for borrowers with relatively high LTVs.
 
It's interesting to contrast the impact of these rates on the 'best buys' table to the comments attributed to Karl Deeter in the Indo article linked above. But then again why would a broker recommend a lender that doesn't deal with brokers...
 
So you could switch to BOI for 1 yr @3% rate, get 2% cashback, then do the market in a years time & switch to another lender offering a cash offer or lower fixed rate? If yoor o/s mortgage is €125k, LTV 60%, can you apply for switcher mortgage €160,000 & use the €35k excess for whatever you choose?
 
If you're fixed for 3 years with BOI and want to switch to the 5 yr fix would they charge you a break fee?

I'm closing on a house in the next week so I don't have time to change my loan offer but am wondering if it's possible to call BOI in the first month and switch from 3 to 5 yr fix.
 
It should be easy enough to do, but why bother?

You get the 1% cash back after 5 years being with BoI. It doesn't matter if you have fixed for three years.

Brendan
 
RedOnion said:
It's interesting to contrast the impact of these rates on the 'best buys' table to the comments attributed to Karl Deeter in the Indo article linked above. But then again why would a broker recommend a lender that doesn't deal with brokers...
Click to expand...

Hi Red

Is this the bit you don't like?

"But Mr Deeter cautioned against fixed-rate mortgages at this point in the cycle."

To be fair, I would have said exactly what Karl said until you and Sarenco pointed out that the costs of breaking out of a fixed rate are likely to be zero.

Also, it's a bit odd talking about this point in the cycle. At this point in the general interest rate cycle, one should fix. But if one expects Irish mortgage rates to fall towards eurozone levels, one would tend towards variable rates.

The weird thing about the Irish market is that the fixed rates are lower than the variable rates in most banks.

Brendan
 
Hi Brendan,

I was a bit surprised at the general comments about fixing, but my comment was specifically re the following paragraph:
"Karl Deeter of Irish Mortgage Brokers pointed out that Ulster Bank, with its four-year fixed mortgage rate at 2.6pc, remains the cheapest in this category, while Belgian Bank offers a one-year rate of 2.9pc."

When we look at the best buy tables, allowing for cash back in most cases BoI comes out marginally better.

We're seeing BoI capturing over 26% of new Mortgage lending this year, without brokers, so people must be doing the maths (or the cash back is enough to get them).
 
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