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AIB Mortgage Interest Advice

  • 16-03-2025 06:36PM
    #1
    thefa
    Registered Users, Registered Users 2 Posts: 1,348 ✭✭✭


    Hi,
    Bought our first home almost a year ago and the house wasn’t eligible for the green rates due to the BER rating and we were over 80% LTV. Given the options available, decided to go on the variable rate of 4.15%.

    Have now got the BER up to B3 and the LTV is under the 80% so believe we can go for the green rates for 2 years (3.25%) and 5 years (3.30%) which my rough calcs suggest could be a saving of ~€200 a month.

    With the ECB rates cut announced at the end of January, would I be better off holding off in the hope of AIB cutting the rates in the near future or lock in what’s available at the minute?

    Thanks for any help.



Comments

  • #2
    Deagol
    Registered Users, Registered Users 2 Posts: 1,887 ✭✭✭Deagol


    My fixed rate with EBS ran out Nov last year. I'm currently in a holding pattern on a variable waiting to see how low green fixed rate might go to before I lock in. With the orange one causing mayhem in the markets though it's a tougher call than it should be.

    If there's a recession in the US and big economies in Europe there's possiblity rates will keep going down. My personal target is fixed rate of 2.75% (I'm <50% LTV) - I'll probably lock in at that if it gets there.



  • #3
    TheSunIsShining
    Registered Users, Registered Users 2 Posts: 610 ✭✭✭TheSunIsShining


    Last time I looked, the market was less certain of the expected rate cuts by ECB - linked to the German investment announcement. Don't think rates will go up, but everything is far more up in the air at the moment.



  • #4
    lau1247
    Registered Users, Registered Users 2 Posts: 2,331 ✭✭✭lau1247


    https://www.boards.ie/discussion/2058402901/aib-mortgage-interest-advice

    ECB cut doesn't necessarily translate into the bank "must" give their rate a cut too (Unless it is tracker, not discussed here). You may or may not be waiting a while.

    If I were you and are paying 4.15% now with the hope it would come down to XYZ versus 3.25% fixed for 2 years. You just need to make some assumption of when XYZ will kick in and work out the figures.

    If the difference is minimal, then I'd go with the 3.25% fix now and then re-assess in 2 years time.



  • #5
    thefa
    Registered Users, Registered Users 2 Posts: 1,348 ✭✭✭thefa


    https://www.boards.ie/discussion/comment/123271975#Comment_123271975

    Thanks for all the replies. 100% on the logic when looking at the 2 year. If I wait around 6 months for a drop, I’d have basically saved the difference in the interim.

    I was interested in the 5 year too but the difference between the 3.25% & a theoretical 3.00% over a 5 year period would be material ~€3.5k. Bit of a guessing game but interesting to get some takes on it.

    I was in with AIB a few weeks ago about the process of amending and the advisor said it was likely a cut would happen to their rates but no indication on the timeline. They seem to have dropped their green rates in April last year (& again in sept/oct) so the temptation is there to hold off another few weeks.



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