Can I get a mortgage part fixed part variable?

M

malkmoose

Registered User
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Is it possible to have a split mortgage with any of the mortgage providers in Ireland?

For example, total mortgage of €200K with €100K on a fixed rate and €100K on a variable rate. This is offered in other countries.

I am with AIB and I could not find any information about this online.
 
Yes this is possible.
I think you'd have to approach AIB and ask them about your specific situation though.
Or other lenders if you might be in a position to switch lenders (e.g. no arrears, not in negative equity, the lower the LTV the better etc.).
 
Yes, it's quite easily done. They just set up two mortgage accounts for you, one for the variable amount and one for the fixed amount. It will also mean two payments are taken from your account each month to service the mortgage.



Steven
www.bluewaterfp.ie
 
SBarrett said:
It will also mean two payments are taken from your account each month to service the mortgage.
Click to expand...
I know somebody going onto a split and that was never mentioned to them.
In this case it's an arrears/mortgage difficulties situation (with one part warehoused on interest only) so maybe that's different?
 
I've had a split mortgage for years with BOI - as Steven correctly states above, there are 2 accounts created - 1 is for the fixed portion and the other account for the variable portion, both of which are debited accordingly each month.
 
ClubMan said:
I know somebody going onto a split and that was never mentioned to them.
In this case it's an arrears/mortgage difficulties situation (with one part warehoused on interest only) so maybe that's different?
Click to expand...

I think you have to ask for it. If they're on variable at the moment they could ask to split it now.

I'm the same as Bren. I've my mortgage with BoI and I've two accounts.
 
SBarrett said:
I think you have to ask for it.
Click to expand...
I don't understand - ask for what?
Two separate accounts/payments for a split?
They ARE going onto a split in order to address what BoI have several times termed an unsustainable mortgage even though this is an extreme view on their part.
It's an ARA or MFA (whatever the latter stands for). As ever lenders love throwing out jargon just to confuse the punter... :rolleyes:
After the split the annuity part will remain on the applicable variable rate (4.25%) and the warehoused part will be on 2.5% fixed for two years.
However they will probably fix the annuity part at 3.75% (or lower if rates fall again in the September timeframe?) for 2-3 years.
 
Ask for part of it to be variable and part fixed.

So on the annuity mortgage, they can have part fixed and part variable.
 
Oh - I get you now.
I'm not sure that it's worth doing here as it's unlikely that there will be any spare cash for capital repayments in the next few years.
Although I supposed splitting the annuity between fixed and variable is also a bit of a hedge against variable rates falling below the prevailing fixed rates...
 
I got only got my mortgage a few years ago. Rates were already really low and it looked at if rates were only going one way, so I fixed 75% of my mortgage. They did only go one way, the opposite to where everyone thought they were going!! You're never going to get the cheapest rate all the time. Over the term of a mortgage, variable is cheapest.


Steven
www.bluewaterfp.ie
 
SBarrett said:
Over the term of a mortgage, variable is cheapest.
Click to expand...
I agree - in general.
But when you're dealing with edge case almost unsustainable cases fixing can help to get some stability - at least in the short/medium term.
 
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