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To fix or not to fix

  • 27-04-2017 8:25pm
    #1
    bee06
    Registered Users, Registered Users 2 Posts: 4,514 ✭✭✭


    I thought there was a similar thread about this but I can't find it now ... I'm interested to hear what people would do in the below situation.

    Currently have a mortgage with AIB with an interest rate of 3.30%, about 176.5k and 28 years left. House is worth about 350k. We've been overpaying by about 250 Euro for the last year.

    The mortgage broker we got the mortgage through originally contacted us to say he thinks by switching to KBC we could get a much better deal, in particular by fixing. I think a 3yr fixed assuming LTV of less than 50% would be 2.95% assuming I also opened a current account with them which my salary was paid into and mortgage is paid out of. They will also pay 2000 Euro for the switching costs.

    On the face of it, it seems like a no-brainer but I'm quite wary of fixing after being burned on a previous mortgage and losing the flexibility of overpaying. Plus the thought of doing all the paperwork again kind of makes my skin crawl (not a good reason not to switch of course).

    So, what are people's opinions on fixing now? From what I've read mortgage rates aren't expected to go up until next year. I can't imagine they will go down any more so probably nothing to gain by waiting.


Comments

  • #2
    Merowig
    Registered Users, Registered Users 2 Posts: 413 ✭✭Merowig


    You could consider to fix only a part of the mortgage amount. Overpaying on the rest.


  • #3
    brendan86
    Registered Users, Registered Users 2 Posts: 491 ✭✭brendan86


    I would personally stick with AIB , Have you contacted AIB to see what rate they will give you 3 year fixed? And as above poster said fix a portion so you can still overpay on varible portion.

    KBC are terrible with exisiting customers passing on rate reductions. Im with KBC past 7 years and my varible is 4.25%. I wouldnt just rely on your broker do your own research.

    You could maybe get a valuer to value your house with AIB and maybr get your LTV down <50% with current mortgage.


  • #4
    bren_mc
    Registered Users, Registered Users 2 Posts: 430 ✭✭bren_mc


    brendan86 wrote: »
    I would personally stick with AIB , Have you contacted AIB to see what rate they will give you 3 year fixed? And as above poster said fix a portion so you can still overpay on varible portion.

    KBC are terrible with exisiting customers passing on rate reductions. Im with KBC past 7 years and my varible is 4.25%. I wouldnt just rely on your broker do your own research.

    You could maybe get a valuer to value your house with AIB and maybr get your LTV down <50% with current mortgage.

    I'm in the same boat as yourself - currently on 4.25% with KBC. Have you seen this offer?

    Looks like a no-brainer. I have the valuer coming out next Tuesday. I would think I will fall into the 50-60% bracket so hoping to get down to 3.25 and will also switch the current account to get a further 0.2 reduction.

    Reason I found this thread was actually to look for advice on whether to opt for variable or fixed rate option.


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