BOI reduce fixed rates - should I fix?

B

brickhouse

Registered User
Messages
9
Hi,
I'm a variable customer on 4.35% with boi.
My mortgage was 230k over 25yrs, how will this effect my repayments if I opt for the 2year fixed deal of 3.6%
 
Google is your friend - you could have found this out as easy as typing in the message into this forum !

Original repayment = 1259 euro a month @ 4.35%
Revised repayment = 1164 euro a month @ 3.6% for 2 years

difference is 95 euro a month for 24 months = 2280 (all other things remain equal)
 
Thanks so
Much!
100 a month? Seems like a no brainer to fix..... Or am I missing something?
 
You're locked for 2 years when rates might drop further. Euro average is around 2%
 
Cilar said:
You're locked for 2 years when rates might drop further. Euro average is around 2%
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Apart from AAM most media seem just to publish press release from Bank of Ireland without much comment. I thought i saw somewhere that in order to qualify for certain fixed periods your property had to be valued in excess of the Loan.
 
trojan said:
Apart from AAM most media seem just to publish press release from Bank of Ireland without much comment. I thought i saw somewhere that in order to qualify for certain fixed periods your property had to be valued in excess of the Loan.
Click to expand...

The new fixed rates only apply to mortgages with a loan to value (LTV) ratio of less than 80%.

These loans are less risky from a lender's perspective than mortgages on properties in negative equity and therefore they will compete for this business and offer more attractive terms to borrowers.
 
Cilar said:
You're locked for 2 years when rates might drop further. Euro average is around 2%
Click to expand...

It will be a very long time before Irish banks are in a position to offer loans at rates that are comparable with average new lending rates in Eurozone given the level of non-performing loans in their back book.

You are of course correct that lending rates could fall over the two-year fixed period. Equally, they could rise over the next two years - who knows?

I would have thought a two-year fixed rate of 3.6%, as against 4.35% SVR, was pretty attractive. Of course if a borrower wanted to stay on a variable rate, they could switch to KBC who have an effective rate of 3.55% at that LTV.
 
An other option is to get BOI to reduce your variable rate which they did for me.
They are offering variable rates as low as 3.6%
 
Brendan Burgess said:
No. People in deep negative equity can avail of BoI fixed rates as well.

http://www.askaboutmoney.com/threads/bank-of-ireland-trims-fixed-rates.194182/#post-1432838
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Apologies, my mistake - I should have said the 3.6% rate only applies at the lower LTV.

It's strange that BOI didn't highlight the fact that the 3.7% 2 year-fixed rate can apply to those in negative equity in their press release. That looks like a reasonably good deal to me in those circumstances.
 
Clonback said:
An other option is to get BOI to reduce your variable rate which they did for me.
They are offering variable rates as low as 3.6%
Click to expand...

Absolutely. I wonder will BOI publicise the fact that they will offer a variable rate of 3.6% in certain circumstances and whether KBC (or another lender) will re-act by reducing their low LTV rates.
 
I thought it seemed fairly ok.
I don't really envisage them reducing the standard variable to those sorts of rates and if they do it could be closer to the end of the 2 year period anyway.......
might give them a call on tuesday.
 
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