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Switching Mortgage

  • 17-04-2025 03:01PM
    #1
    Beefcake82
    Registered Users, Registered Users 2 Posts: 151 ✭✭


    Hi,

    My current fixed term ends on Saturday 19th Apr at rate of 3.2% with PTSB. I received a letter about selecting a new mortgage rate back in Feb but due to some family issues etc, resolving this was put on the long finger.

    The options they have offered included green rates which we would not qualify for however the rates we do qualify for are the following

    2 year fixed 4.1%

    3 year fixed 3.8%

    5 year fixed 3.8%

    7 year fixed 3.8%

    or variable rate of 4.5%

    Now these are based on figures from February this year and dont take into account the ECB interest rate drops of March and today. Now while usually they dont normally affect fixed rates for existing mortgages, i am wondering which of the following options is best:

    Should i accept 1 of the fixed rate options and next day delivery of form today?

    Wait it out till next week and hope for a better rate offer?

    Begin talks to switch mortgage to another lender, Avant and AIB current offers look appealing and imagine they will be better afters todays ECB announcement?



Comments

  • #2
    Q&A
    Registered Users, Registered Users 2 Posts: 579 ✭✭✭Q&A


    First and foremost I'd be assessing my financial capacity.

    If I had a small mortgage that the monthly repayment isn't a large chuck of my take home pay I'd be more open to exploring options.On the other hand if I was heavily indebted I'd probably look to lock in a rate now to reduce the risk of an adverse rate movement.

    If you're the former not the latter then I'd definitely consider switching as long as it makes sense. There is a fixed cost associated with switching (legal fees, valuations etc.). While a lower rate may look attractive it's got to be worthwhile with you factor in those costs.

    So it's a bit of a balancing act: a small enough mortgage that you're not risking your home by playing the market but big a big enough balance (and term) to make it worth your while switching.



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