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Mortgage Interest Rates Short to Medium Term?

  • 03-07-2019 10:54am
    #1
    Delboy33
    Registered Users, Registered Users 2 Posts: 64 ✭✭


    I am currently on LTV variable rate >50% <=80% of 2.95% with AIB. With a valuation which costs €150 I would be able to avail of LTV variable rate <=50% of 2.75%. But the 5 years fixed rate of 2.85% seems appealing and doesn't require a valuation fee. What are folks thoughts on the short to medium term view on interest rates. Are the banks pricing lower fixed rates as they are expecting lower ECB rates in the short to medium term. Please Help as I assume there are knowledgeable out there that have done some research or are in the know. Al advice is appreciated and I understand is a guesstimate and will be influenced by market conditions. Thanks in advance.
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  • #2
    baldbear
    Registered Users, Registered Users 2 Posts: 5,618 ✭✭✭baldbear


    Dave Butler wrote: »
    I am currently on LTV variable rate >50% <=80% of 2.95% with AIB. With a valuation which costs €150 I would be able to avail of LTV variable rate <=50% of 2.75%. But the 5 years fixed rate of 2.85% seems appealing and doesn't require a valuation fee. What are folks thoughts on the short to medium term view on interest rates. Are the banks pricing lower fixed rates as they are expecting lower ECB rates in the short to medium term. Please Help as I assume there are knowledgeable out there that have done some research or are in the know. Al advice is appreciated and I understand is a guesstimate and will be influenced by market conditions. Thanks in advance.

    Would you not just get the valuation done. Move to the 2.75% for a year or so & see if AIB would lower their Fixed rates further?

    Or move to Ulster bank fixed rate of 2.3% for 2 years? If you do let me know how you manage.


  • #3
    baldbear
    Registered Users, Registered Users 2 Posts: 5,618 ✭✭✭baldbear


    Dave, me again.

    So I was talking to a mate & he has switched 3 times in 5 years to avail of cashback offers.

    I looked at tsb & they have a rate of 3.4% (€55) more a month but €4800 in cashback.

    When the year is up then switch to another bank with similar offer or am i missing something?

    Forget to factor in valuation & solicitor fees. But still you would be €2k better off.


  • #4
    Delboy33
    Registered Users, Registered Users 2 Posts: 64 ✭✭Delboy33


    I didn't think you were able to switch that quick and avail of cashback offers. It was my understanding to receive the cashback offer you have to sign up to stay for a minimum period was in excess of 1 year.


  • #5
    dotsman
    Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    baldbear wrote: »
    When the year is up then switch to another bank with similar offer or am i missing something?

    What happens when the bank with the lowest rate stops offering Cashback?

    Or worse, doesn't accept your application? And you get stuck with the more expensive bank. The difference is several thousand a year, every year for the life of your mortgage.


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