Hi g
I want to untangle the different issues
1) You have a fixed rate mortgage.
When did you take it out?
What is the rate?
What was the original term?
I suspect that what they are telling you has nothing to do with the Prevailing Rate.
They are telling you that currently there is no fixed rate breakage fee on this mortgage. And they are holding that open for 5 days.
It is probably right for you to break out of that fixed rate as there is no fee.
Just go to variable rate and then you can decide what to do next at your leisure.
2) After the write down you will owe less money.
If you pay the interest refund against this, you will owe less money again.
If you want, you can now shorten the term on your mortgage.
This will give you a new lower repayment.
3) Do you want to fix again?
What is your Loan to Value?
I would probably not fix at 2.55% if I were paying the <50% rate of 2.75%.
But if I had an LTV of >80% and I were paying 3.15%, I would probably fix.
But there is no clear answer to this question.
You want to fix for 3 years at 2.55%. Feel free to do so.
4) What if AIB is directed by the High Court or Central Bank to give people trackers at 1.5%?
The fact that you fixed will not have any bearing on the issue.
Clearly if you were on a tracker rate of 1.5% , you would not have fixed at 2.55%. So AIB will refund the difference between what you paid at 2.55% and what you should have paid at 1.5%.
Brendan