Which option should I go for? FTB

galz1985

Hi

I have just been approved for a mortgage with AIB. Mortgage is for £135k

I have two options:

A/ Discount Variable (1.25% off SVR 4.75%)currently works out at 3.5% variable for three years then standard variable rate for remainder.

or

B/ Fixed rate (3.99% for three years) then SVR 4.75%

Any advice would be much appreciated as I am a FTB

Thanks

betmunch

Are you worried about the lender increasing their rates?

Is there any difference in fees to set this up?

I assume you are sorting this yourself, or have you got a broker helping you? and is so whats their opinion?

welshwizard1927

The base rate is presently 0.5% and has been for years. If its ever going to change, it can only go up.

I don't think (and certainly hope) it will never go up to the levels of years gone by, but even a small increase could mean the rate you pay on a variable mortgage is the same, or even more, than the fixed rate.

galz1985

Hi

There is no arrangement fees with either. The variable works out at 3.49%.

As the variable is just on the SVR at 4.75% is there much chances this will go up in three years. After the 3 year window I would be on 4.75% but could hopefully talk to the lender and get a better deal at that stage.

Thanks

opinions4u

If it's a straight 3.99% fixed v 3.50% variable then I'd fix.