Switch to 3 year fixed rate or wait?

M

markm030

Registered User
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36
Hi,

I am on a variable 2.75% rate with AIB, 266K outstanding on mortgage. The 3 year fixed rate is currently 2.55%. Avant Card are apparently going to enter the Irish market soon and are expected to undercut existing mortgage providers to try and gain market share.
While I could save about 25/30eur switching to fixed rate now I am reluctant to do so in case rates fall further as a result of Avant Card coming into the market.

Should I switch now to fixed or wait and see what happens over the coming months with rates?
 
You would actually save 44eur pm if you switched to 2.55%.

if you switched to Ulster Bank, they have a 2.3% fixed for 2 years. Beats AIB and if you think the rates are going down, the fixed term is shorter. Saves you 100 pm over your current rate.
 
Itchy said:
You would actually save 44eur pm if you switched to 2.55%.

if you switched to Ulster Bank, they have a 2.3% fixed for 2 years. Beats AIB and if you think the rates are going down, the fixed term is shorter. Saves you 100 pm over your current rate.
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Not sure where you are getting 44eur from as I didn't give the term remaining on the mortgage. It isjust over 25eur savings a month based on just over 19 years remaining on the loan.

It is 58eur per month savings based on a 2.3% loan. Not sure if switching to KBC will be worth it after considering legal costs, valuers fees etc. Ideally I am hoping AIB will reduce their fixed rates in line with reductions from competitors.
 
(2.75%-2.55%)*Mort Balance = Annual Interest savings. Your payment is made up of an interest and capital payment. Capital payment varies depending on your term.

If you're not sure of the costs of switching you should check it out to give yourself an idea. It should cost the same to switch to UB/KBC. Both give you a cash contribution to those switching costs.
 
Itchy said:
(2.75%-2.55%)*Mort Balance = Annual Interest savings. Your payment is made up of an interest and capital payment. Capital payment varies depending on your term.

If you're not sure of the costs of switching you should check it out to give yourself an idea. It should cost the same to switch to UB/KBC. Both give you a cash contribution to those switching costs.
Click to expand...
Thanks makes sense. I think I do need check it out. I suppose I have bee reluctant to switch given the perceived hassle of it and potential costs and the potential of having to switch back again in 2 years.
But maybe I am wrong in thinking it is a complicated and time consuming process.
I might wait and see if Avant Card put up a fixed rate less than 2% before I do anything.
 
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