LTV>90% should I fix (AIB). Advice please.

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monkey80

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We have no equity in the house. We have 240k left on the mortgage and I think the house is worth 220-240. (original loan was 275k)

We are on the standard variable with AIB 3.15%.

Due to our LTV>90% we cant switch for at least another year until we have a small bit of equity in the house.

I'm looking for advice, with all news recently about interest rates maybe rising soon. Would it make sense to fix at 3.2% for 1-3 years, or longer for more....3.3% for 4-5 years? Or should I wait it out for another year or so and hope to switch to a lower rate when my LTV is less than 90%.

Any help or guidance would be greatly appreciated. Thanks
 
Personally, and I have no crystal ball here, I think AIB will have to make a move downwards on interest rates shortly to remain competitive. Possibly before end if March as their market share is below their target.

There is plenty of competition to hold short term rates low for another while, so there is no rush to fix. Margins will tighten a bit more, before market rate rises have any impact on customer rates.

I would expect AIB to reduce their variable rates across the board, and match their EBS fixed rates as a minimum.

This is just my opinion.
 
That's good advice thanks very much. I'd be at pains to fix with AIB when I could switch to BofI in a year or so if house prices continue to rise.

Also what is their market share and what is their target?
 
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