Switch to 3 year fixed or just stay put

B

Boris1234

Registered User
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Last September I posted on here about breaking out of our 2 year fixed to get the new lower rate from AIB when they announced the changes.

We had just started a 35 year mortgage on a 2 year fixed at 3.6% but we were able to break out free of charge and refix for 2 years at 3.2.

Given the likelihood that rates will rise in the next 2 years or so and after we come out of our current fixed term, i'm wondering would it be sensible to request to fix for 3 years.

AIB's fixed rate for 3 years is also 3.2%.

Would love to hear any opinions on this.

Thanks
 
Do you mean refix now for 3 years if they allow without a break fee? Or are you talking about what to do in September 2019?
 
RedOnion said:
Do you mean refix now for 3 years if they allow without a break fee? Or are you talking about what to do in September 2019?
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Yes I mean refix now for 3 years, if they allow without a breakout fee.

Dauhee said:
Move to PTSB, get cashbacks, pay effective 2.17% for 3 years
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Is switching worth it when you take into account possible breakout fees and solicitor fees. We only took out the mortgage last August.
 
dependant on break fee, but 2% cashback on 200k is 4k, so that will cover valuation, solicitor, break fee and large remainder for you

best do your sums and see which provider is best value for you
 
You won't be able to switch on such a new mortgage, but if you could it would be worth it. Any other lender would want to see minimum 12 monthly repayments (but more usually 24 months).

The way AIB calculate break fees mean there should be no charge. Their 1 & 2 year fixed rates are the same, and the would normally use the difference in your case.
 
no you can switch on "new" mortgages, UB I believe have no set period and has accepted somebody a month after drawdown for EBS. Others have 6 month, others again have 12 month. Am too lazy to search but it was clarified by somebody on this site a couple of months ago.

Obviously would need to verify this
 
That's interesting, and apologies if I've misled. I knew you could move again quickly after switching, but didn't realise you could switch so soon on a new drawdown. I knew UB had proposed accepting switcher applications after 6 months, but I haven't seen their updated terms recently. I'm surprised they've relaxed their underwriting to allow after 1 month.
 
sorry folks, just dug out post as per below to clarify, it was KBC and AIB that have no required duration

tom1ie said:
Such rubbish from the mortgage broker!
Aib will take Ebs customers no problem, and I originally moved from aib to ebs which you think would make it worse. Boi require you to be with your lender for 12months and ub 6 months. Kbc will take your business straight away (as long as you qualify of course) the same as aib.
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In that same thread, somebody confirmed moving to AIB from EBS after 7 months.
 
@Boris1234
To summarise:
1. You will not have a break fee unless AIB announce a rate cut.
2. AIB do not compete on fixed rates. If you want the peace of mind of a fixed rate, you will do better elsewhere if you can switch. See the best buys threads, or post your specific details here. Other lenders will give cash back to cover your fees (and maybe more).
3. If you can't switch, you might as well go for the 3 year rate.
 
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