Hi
@SunnyOct8,
Normally I would say that I don't really see why you would go for AIB's
10-year rate (3.1%) when you could fix with KBC for 10 years at 2.85%.
But it is currently taking KBC a long time to process these 'fix' requests, and they might increase their interest rates before they process yours – see
this thread. Then again, AIB will probably increase
their rates before you complete any switch to them. (Switching to AIB seems to take about 3 months.)
Note that KBC's 10-year fixed rate is currently 2.85%, not 3.1%.
All we can say is that if you fix with KBC and
if wholesale interest rates decrease by X%, the break fee will be €Y. (If wholesale interest rates
increase by any amount, the break fee will be zero.)
Unfortunately, fixing for a long period, e.g., 10 years, magnifies the effect of any decrease in wholesale interest rates, which can lead to very large break fees (thousands).
You might think of fixing for a shorter term, e.g., 5 years, with KBC in order to reduce the size of any potential break fee, but that isn't a great idea because you will be at the mercy of BOI's rates after that.
You should contact KBC and see if they will give you an estimate of how long it takes to fix with them. Overall, though, given that you are on a variable rate that will probably increase soon anyway, fixing with KBC might be the best idea.
At the same time, you can start the switch to AIB but abandon it if they increase their rates too much or if it looks like their will be a large break fee to leave KBC. Just be aware that you might be liable for solicitors' fees if you abandon the switch after having engaged the services of a solicitor.
Finally, if you think that there is a reasonable chance that you will move home in the next few years, you probably should not fix for 10 years (with any lender).