Switch for cashback, switch to fix, or stay with AIB, advice needed please

Discussion in 'The Switchers' Forum' started by monkey80, Apr 20, 2017.

  1. monkey80

    monkey80 New Member

    Posts:
    6
    I'm looking on some advice regarding whether to switch mortgages and if so, to what?

    We currently have 240k to pay back on our mortgage, they house is valued at 300k, so mortgage is 80% of value. We are with AIB, 3.4% variable (1146 per month), we can switch at any time.

    I think we have 3 options and would like your advice on what is the best thing to do.

    Option 1. Switch to EBS at 3.5% variable for the cash back 4800e, minus solicitor's fees and valuation. We have been approved in principle. (1179 per month, 33 euro more than AIB, but we will have the option to pay back fortnightly, which will be a bonus)

    Option 2. Switch to the new Ulster bank fixed loyalty plus rate of 2.99%, 3 years. I have not applied for this yet but I think the repayment will be around 1007, saving me 139e a month; so should have the solicitor's fees and valuation paid back in around a year, then the switch will be saving me money.

    Option 3. Stay with AIB and hope that they drop their rates to compete with Ulster bank.

    Option 4. Something else????

    note:- my wife maybe moving from full time to part time work in August which may mean that we are less likely to be approved by another bank if we leave it until then.

    What should we do? Any and all advice would be greatly appreciated. Do you think other banks will drop rates to compete with Ulster bank? Should we forget the cashback option? Is fixing paramount due to ECB upping interest rates in future?

    Thanks in advance :)