MissPiggy19
Registered User
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- 11
Hi all
I am currently getting mortgage quotes for approx. €250k mortgage (purchase value €400k). Just looking for some advice on whether to go with a fixed rate or variable rate? I would hope to pay of the mortgage early but would initially go with a 15 or 20 year term. I have one quote so for from aib and they are quoting 2.95% variable.
Fixed rates seem to be a lot less from what I can see but just wondering if there is a catch with this.
I am a first time buyer
Thanks in advance
No. Ulster Bank's fixed 2 year 2.3% is cheapest on market currently.Surely variable rates are cheaper?
No. Ulster Bank's fixed 2 year 2.3% is cheapest on market currently.
Comparitively AIB's best variable rate is 2.75% (for low LTV).
@MissPiggy19 Have a read of the key posts stickied to the top of this forum.
It's not that old!
So, AIB have used the message of 'fair' mortgage rates to win share. They've the lowest variable rates.
There are much better fixed rates - you've the security of knowing exactly how much your repayments will be for the period. Very useful when starting out, as there'll always be unexpected costs.
There's also an option to overpay. I recently updated the first post in the following thread, and it shows the amount that each lender will allow you to overpay without calculating if a break fee applies: https://www.askaboutmoney.com/threads/understanding-fixed-rates-breakage-costs.204427/
The cost of switching is usually a valuation and solicitor fees. ~ 1500 maxOk, so could you start a new fixed term say?
And is it possible to predict at the outset the cost of switching if for example Ulster Banks rates were higher than the others at the end of the fixed term?
That's been my attitude in 4 or so years I've been a homeowner. (switched mortgage twice now for better rates)Ok thanks all. I presume you mean take the best rate now regardless of whether it’s fixed or variable? And then deal with whatever happens down the line?
That's been my attitude in 4 or so years I've been a homeowner. (switched mortgage twice now for better rates)
Do you absolutely need the exemption? E.g if you drew down the max, and take a 6 month payment break straight away to get yourself sorted? The rate differences are huge.the max loan is normally €234k and I want €250k. I am paying €190k myself so find this so disappointing
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