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What interest rate should I go for...

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  • 17-06-2022 2:52pm
    #1
    The Mighty Quinn
    Registered Users Posts: 1,228 ✭✭✭


    Bank of Ireland have written to me with my options for locking in a new rate, as my current rate expires in August.

    image.png

    My current rate is 2.9%. Obviously a variable is out of the question.

    Judging by the most recent sale of a house in my estate a few months back, I'm at about 62% LTV at the moment. Not sure how to calculate it out, but I'd be down to 60% LTV in 7 ordinary repayments, so maybe within the year including interest add-ons. I just checked the BOI website and the rates don't seem any better for LTV 60 and under.

    Have heard something about ECB rates going up, and about a knock on to mortgage rates. I'm not sure whether to lock in for 5 years at 3%, or take every penny I can get now and lock in for 2 at the 2.9%. The repayment difference is less than a pint a month, so negligible!



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    #2
    JTMan
    Registered Users Posts: 5,537 ✭✭✭JTMan


    Go for none of the above. Switch.

    Use Consumerhelp.ie and/or ask the experts on askaboutmoney.com to find the best rate for your circumstances.

    Options include Avant Money who charge 1.95% fixed for 3 years which is available via a broker.

    Switching takes time so the sooner you start the switch the better.



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    #3
    macvin
    Registered Users Posts: 716 ✭✭✭macvin


    I'd switch to Avant if possible and then go for as long a fixed rate as possible. You can get 15-20 year fixed with them for 2.5% for a 60% ltv.

    Can take 6 weeks for the switch, so do it asap.



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    #4
    The Mighty Quinn
    Registered Users Posts: 1,228 ✭✭✭The Mighty Quinn


    The August date is my 5 year mark with Bank of Ireland.

    I'm due a payment of 1% of my mortgage drawdown at that point. There was a 3% cash back offer, 2% on drawdown, 1% on 5th anniversary.

    I won't switch provider before then I think.



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    #5
    Sarn
    Registered Users Posts: 3,060 ✭✭✭Sarn


    Just so you know, it’s taking about four months to switch to Avant. It’s expected that ECB rates will rise 0.25 bps in July and maybe 0.5 bps in September. That could put the BOI rates up at 3.75% come September.

    You could always ask what the break fee is and have that in your back pocket if you wanted to refix with them before rates rise.



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    #6
    fiestaman
    Registered Users Posts: 1,146 ✭✭✭fiestaman


    I'm in your boat , I'm with boi and I've the exact same offer as you. Bare in mind if tou switch,the rates offered from lenders is not the guaranteed rate you'll be on when the draw down happens if interest rates rise in the next few months and at the moment it's 4-6 mts to make a switch. And then you have soliciter fees of €1500 if no cash back offered. I was considering 2 or 3 yr as one broker expects the likes avant and finance ire land to keep their rates low, at least lower than some of the main banks, but then that's not guaranteed either. Hard to know what to do as if for instance you apply to switch and get offered 2.4% and by the time you draw down rates are up .5 or .75% and that's what's on offer and it cost €1500 to switch, well to me then that's a waste of time.

    It's all bull as you should be guaranteed the rate on offer from date of application regardless how long it takes for paperwork



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    #7
    Cape Clear
    Registered Users Posts: 2,604 ✭✭✭Cape Clear


    Why is switching taking so long? If anything you would think the process should have sped up in the last 10 or so years that people have been doing it?



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