Our mortgage was previously with Ptsb, we were paying interest only for a period of time.
Thanks a million Brendan for prompt response. Yes c204k balance on current mortgage.Have you about €200k outstanding on your mortgage? So an LTV of 66%
1.4% +2.5% = 3.9% which you will be paying shortly.
This could rise.
But there is some value in a margin of 1.4% for the life of the loan.
So you get BoI's 5 year fixed rate at 3.25% less .3% Green discount for the first 5 years, to bring it to 2.95%.
So fixing with Bank of Ireland at 2.95% seems attractive. But what will happen when the 5 years is up?
BoI is good value at the moment, but has a long history of exploiting existing customers with very high rates to fund the cash back offer.
So it's not as clear cut as it looks at first sight. You will get about €4,000 cash back but spend about €1,500 on legal fees.
And the other problem is that by the time you get approval from BoI, their rates may have increased.
You could fix with AIB for 3.15% for 5 years green mortgage. And it is likely that you would be better off for the 10 years remaining after the 5 years is up. AIB pays switchers €2,000.
And AIB is ahead of BoI on increasing rates in this cycle, so it's less likely that their rates will have increased.
There is no right answer as we are speculating on future ECB rates and future strategies of banks, but this is what I would do
Avoid Bank of Ireland
Apply to AIB
When you are ready to draw down, make the final decision based on rates at that time.
Brendan
Thanks Brendan- appreciate the response.@Nano2023
1) There is no option to fix with Pepper, so you would have to switch.
2) You could switch to AIB for 5 years at 3.45%
3) With the ECB Rate after today's announcement at 3%, you will be paying 3.6%
4) In two months, you will probably be paying 4.1%
5) After that, it's anyone's guess. Rates could go up or down.
6) I don't think it's worth the hassle and cost of switching €68,000 with 7 years left
7) Even if you save 0.5% and there is no guarantee that would, you would save "only" about €2,000 in interest over the next 7 years.
8) I don't know if AIB will give a mortgage of €68,000 for 7 years. I suspect not. I doubt that they would pay the €2,000 switcher incentive for such a loan.
Stay where you are.