good rate?

L

little Q

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I've been offered a mortgage rate of 3.24% fixed for the next two years by my bank - is this good? (also has the option of getting out without penalty in those 2 years) or should i stay variable - currently 2.75%

Its year 4 of my 40year term... and i probably owe about 310-315k. (down from 320!)

Advice would be appreciated.
The 'Key' threads go back to 2001... and I can't access most of the other financial websites from work. I know the Indo do a best buys, but can't find it on their website.

Thanks,
L Q
 
3.24% for a two years fixed is not a great rate but if you have no other choice then it's not a bad rate.

Is this Irish Nationwide?
I have advised some clients to fix at this rate instead of the keeping on the variable as I think the variable rate will jump by at least 0.5% in the next two years. These clients were in negative equity though so could not move their mortgage.

If your loan to value is less than 92% and you can afford to, then I would advise switching lenders to get a better rate. You can still get a 5 year fixed at 3.86% at AIB but there will be switching fees, BOI offer a contribution to your legal fees if you switch through them. Be careful with BOI though, they have different rates for new and existing customers unlike AIB, this means at the end of your fixed rate you will not be offered the best rates available.

[broken link removed]
 
Hello,

I have also been offered this rate by Irish Nationwide and am currently on their variable at 2.74%. Touch wood - we do not have any difficulty paying the mortgage at the moment and could afford an increase. In this case do you think it is wise to fix? Or should we just hang on and see how it goes? If you opt in before 31st March you can opt out at any time without paying any penalties and you can a pay lump sum off your mortgage without any penalties too - which sounded really good. In my ignorance I though 3.24% was actually a decent rate ;(
 
Am i right in thinking that existing customers are charged more than new customers? Or is the interest rate i've been given above higher because i have the option to pull out within the two years?

From their website, seems that new business 2 yr fixed is 2.99%
and existing business 2yr fixed is 3.49% (but i've been given option of 3.24%)

Can you haggle with banks, like with insurance companies???!!! :)
 
Hi Norfbank,
How can I check this out:

"Be careful with BOI though, they have different rates for new and existing customers unlike AIB, this means at the end of your fixed rate you will not be offered the best rates available."

Thanks
 
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