Mortgage - low fee for breaking fixed rate

At €270 it's probably worth a punt in my view. Was in a similar position myself and went for it a few months back. If you have paperwork relating to improvements it's worth showing them to the accessor or if you have builders drawing showing what insulation was put in first day otherwise I believe minimum figures are used in the calculations.

Have a look at Bonkers.ie to see ho much would the change of rate save you over the 5 year fixed term.

Is there anything you can do easily? Check all the bulbs were LED? Could you install a smart heating controller? See if any easy things to change on last BER recomendations.

Technically yes, interbank rates could move against you and your break fee could rise but is is extremely unlikely. Sentiment would have to change dramatically. Markets would have to change their minds about the expected future ECB rate increases. Given the ECB focus is on trying to bring down inflation it's extremely unlikely

You can always break and go variable with BOI if really concerned.

The bigger risk is your potential new lender ups their rates before you complete the switch.

Cheers lads. That's one fear alieved a bit. Just hope I can avoid any interest rate increases to the product I'm applying for.

Started applying via AIB online tool on Monday morning and have since managed to to get AIP and all required info uploaded. Some has even been verified already. I think I was still filling in forms with my broker at this stage when applying to BOI last time.

My broker actually recommended me to use the tool over him as it should be quicker. He's a mate and probably doesn't tell that to all his clients. So if anyone is debating between a broker and doing it themselves, at least with AIB, it might be quicker to apply directly. He has also stopped recommending Haven due to how much of a mess applying is. Was telling me that most his clients have everything done with AIB before Haven even begin reviewing things.

ECB raising interest rates by 0.75%:

Cannot see the banks not passing that on to customers. Glad I broke out of my old fixed rate last month that still had 12 months to run, refixed for 5 years with no breakage fee. New rate is slightly higher than before but if I was to wait a year until the old rate finished god knows what the fixed rates will be like then.

If your on a tracker rate or don't have long to run on your current fixed rate I'd recommend looking at breaking out of those. I think we are in for a sustaned term of interest rate hikes.

Has anyone had issues with getting the Deeds from BOI. Seems to be very slow which is holding up the switch. They have been pinged twice now.

It depends on the bank and how far along the process you are at. If you at an advanced stage where they have already made the mortgage offer to you then they more than likely will honour the rate you agreed at. They might put a hard stop date on the morgage offer drawdown in order to keep the old rate. I think on average it's 6 months from when the mortgage offer is made to you, but there can be exceptions to extend it a bit depending on the circumstances. Best talk to your mortgage lender.

Currently have 3 years left on a fixed rate @ 2.8% with Finance Ireland. Got a letter after enquiring with them as to what my options are,

3 years @ 3.50%

5 years @ 3.55%

10 years @ 3.15%

15 years @ 3.15%

20 years @ 3.25%

Kinda inclined to stay on the 2.8% with 3 years left and hopefully rates will be something similar when the 3 years is up.

Same as.

10 years @ 3.15% is a decent offer in this day and age.

ECB's stated long term policy is for a 'neutral' interest rate (neither stimulating nor restricting the economy) of 1.5 - 2% (generally trending towards the latter) and it is generally *expected* that rates will settle there after rising higher for a period. One point to note is that - as far as I know, but open to correction - this neutral rate refers to the ECB's deposit rate which is different than the main refinancing rate which is what influences mortgages (if you have a tracker, this is what it's pegged to). While it varies somewhat, for most of the last couple of decades this main rate has been 0.5 - 0.75% higher than the deposit rate indicating a *possible* 'neutral' main rate could be in the region of 2.0 - 2.75%.....and then add your bank's margin on top of that!

Of course, no one knows what's going to happen over the next year or two, least of all economists! 'The morkets' however have already priced in increases in the deposit rate to at least 2.75% (= main refinance rate of 3.25%) by next summer....and how long we stay up there is anyone's guess!

Personally, I dumped my ECB + 0.95% tracker a few weeks ago in favour of a five year fixed at 2.35%. Considered a ten year fixed at 2.8% (11 years left on mortgage) but went with the shorter term in the end - may pay off, may not! (If you're an Ulster Bank tracker customer, these rates are still available....but not for long I'd imagine so time to make a call).

Thanks for the informed reply much different to a previous posters simplistic view of things.

I'm in a similar position, dropped the tracker and went with the 10 year fixed, will have 4 years left on the mortgage at the end of it.

Stupid question time, what happens at the end of the 10 years fixed rate, if you're lucky to be in a position to possibly pay off the mortgage do they just offer the latest interest rates at that time?

Can someone answer this about fixed rate mortgages and new houses. There are new houses going up around m and now is the time to reserve and sign contracts. The thing is the houses will not be available until August at the earliest. Does that mean that you are at the mercy of the banks fixed rate at the time of draw down? Is there a way to lock in the rate now?