how long to fix with BOI ?

J

July25

Registered User
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7
I got a mortgage with BOI last and fixed for 1 year @3.55%, and feel glad that I didn't fix for a longer time, with recent reductions in interest rates.

I have now the option of fixing @3% , but undecided about fixing for 1, 2, or 3 years? I know nobody can predict if rates are likely to drop further or start to increase again!
 
We are gonna fix for 3 yrs at 3%.
For us we need to know how much we will be paying each month for the mortgage and no surprises in the next couple of yrs. We will have huge crèche fees as well. Boi variable rate is just too high.
 
The 2.6% 4 year fixed with legal fees thrown in at Ulster bank seems a no brainer to me. That's addressed to July and Maxed.
 
Thank you for your replies.
I was researching the Ulster Bank Rate, It seems I wouldn't qualify for this rate, as my LTV is more than 80% at the moment, as I bought my house last year.
Also my mortgage is just under the €200,000 level which is the requirement to avail of the lower interest rate with Ulster Bank.
 
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July25 said:
Thank you for your replies.
I was researching the Ulster Bank Rate, It seems I wouldn't qualify for this rate, as my LTV is more than 80% at the moment, as I bought my house last year.
Also my mortgage is just under the €200,000 level which is the requirement to avail of the lower interest rate with Ulster Bank.
Click to expand...

Did you make a decision in the end? I'm in a similar position with BOI, they offering 3% for 1-3years. Considering they are offering 3.3% over 10years, I suspect they do not think rates are going to increase much in coming years, unsure how accurate my assessment is though.

Seems that even when fixing, there seems to be low/negligible penalty to break, not sure if this applies to longer fixed durations, however if it did, then seems no downside in fixing for a longer period, then breaking it if better rates come along within BOI or other bank.

Can anyone advise how the penalty for breaking a fixed mortgage contract is calculated?
 
poolfanabc said:
Considering they are offering 3.3% over 10years, I suspect they do not think rates are going to increase much in coming years, unsure how accurate my assessment is though.
...
Can anyone advise how the penalty for breaking a fixed mortgage contract is calculated?
Click to expand...

Hi,
Currently, 10 year swap rates in the interbank market are about 0.8%, so nobody really expects rates to change much. In reality BOI is making a higher profit on the shorter term rates when you look at their cost of funds.

Re understanding fixed break costs, the post below might help. Let me know if not, and I'll try improve it.

Currently all the lenders, with the exception of AIB, calculate break costs based on changed in interbank market rates.

https://www.askaboutmoney.com/threads/understanding-fixed-rates-breakage-costs.204427/
 
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I'm thinking of fixing for 2 years. Waiting for paperwork to be posted out to me from the bank.
 
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