Should I Switch and Fix although might be moving house in the medium term?

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SMAEL17

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Our House is worth €285k / €290k and there is approx. €220k balance due on Mortgage.
We are currently on AIB Standard Rate of 3.15% (I think).

There is a chance that we could move house in the next year or 2 if the right house comes up for sale - Nothing suitable has come up in the past 2 years so if it does, we would need to act fast. Does this effectively exclude from switching now to a Fixed Rate?

I was thinking maybe switching to BOI 1 year Fixed at 3.00% for the Cashback. €4,400 less switching costs so maybe net €3000? Is there a Clawback of this if we sold or switched again?

Any other options?
 
No, if you move to BoI now and fix, you can still move house. At worst, you will have to pay a break fee, but it should be very small and probably zero. Check out this post:

It may be much cheaper than you think to break out of a fixed rate early...

In any event, I think that BoI allows customers to move their fixed rate mortgage.

There is no clawback of any of the cash back deals.

How long have you been with AIB? I wonder if you might be better off staying with them as they might well look after an existing customer better than BoI would look after a newish customer. Not sure. But let's say you need an exemption from the Central Bank guidelines, then I suspect that AIB might be more flexible.

Do you have the cash for the deposit when a new house comes up? If not, you are probably not going to be able to buy it without selling your own house first.

Brendan
 
Thanks for reply - We have 10 of 30 years paid on AIB Mortgage.

For new house, I have €20k savings but we'd also be selling the current house to have approx. €100k equity.
 
SMAEL17 said:
For new house, I have €20k savings but we'd also be selling the current house to have approx. €100k equity.
Click to expand...

But you will have to sell your own house first. This will be very difficult as you could sell your own and find the house you want does not become available for two years.

Brendan
 
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