Coming off fixed: rates offered

[Jessica Derm]

Hi all

I would really appreciate your comments, views and any advice you may have on the following rates that I have been offered by AIB:-

Standard Variable 3.49%
1 year Fixed 3.59
2 year Fixed 3.69
3 year Fixed 3.89
4 year Fixed 4.19
5 year Fixed 4.39
10 year Fixed 5.2

Our mortgage is €305,000 and the house is probably worth around €280,000 now or less. We are due to come off a Fixed rate of 4.85% in two weeks time. Initially we said that we'd never go back into a Fixed rate again after losing out on the low interest rates over the past while but now with the rates rising we are not too sure. We are thinking of the 3 year Fixed @ 3.89%. What do you think?

We're hoping to have our personal debt cleared by Summer 2012 (approx €10,000) so we're thinking that in 3 years time will be have just the mortgage by then which would make things easier if the rates are rising then too. I wish I had a crystal ball.

I've seen split rate mortgages been discussed on AAM and were thinking of 60% 3 year fixed /40% variable but this could be risky I know. I just like the sound of being able to pay a little extra off the variable portion if we had it.

Many thanks

JD

 

[julius128]

If you don't wish to sell your house or pay it off within next 5-10 years, definitely consider fixing that for at least 5 years, as variable rate will sour within next few years. both in ECB as well as bank side itself (consider that you don't have a tracker offer so AIB will definitely follow the path of other banks to keep rising interest rate within next few years)

Your fix rate offers are great, Permanent TSB 10 years fix rate is 9.1%.

 

[kildon]

I'd be fixing my rate for at least 5 yrs, paying a bit more now than for a variable but over the course of the next 5 years it could save you money but more important is the security of knowing what your paying every months which is worth a lot in these times when so many things are changing so quickly

 

[SCA911]

I would grab the 5 year fixed rate of 4.39. Our lender has just increased their variable to 4.35 and their 5 yr fixed is 5.65.

 

[andrew_]

same here

Hi Jessica

Sorry for tagging on to your questions but I am in the same boat as you. I came off a fixed rate before Christmas on to a variable rate of 3.25% with AIB. Just come off the phone to them and they quoted me the same rates. I have €229K left to pay off. I am thinking of the split mortgage keeping an element variable but not sure on the ups and downs of that. I am inclined to look at fixing for the next 5 years to give me some peace of mind. At least is one thing less to worry about. Interested to see the replies that you get to your question.

Andrew