Bank of Ireland mortgage offer

toddis

I have a Bank of Ireland buy-to-let tracker mortgage (the one which had the rate hike). I'm currently on a rate of 4.99% and BoI are offering a 2yr fixed rate of 3.79% which would cost me £100 less per month.

As the interest rates are low, I'm wondering if this would be a good move, however, would I be throwing a 'good' mortgage away just by wanting to save £2,400 over two years (which can't be sniffed at).

Common sense tells me I should go with it, but I'm scared I'm not seeing the wood for the tree's.

It's a tempting offer, but would I suffer in the long run? The cost of switching products is zero and the Application submission deadline is 26th April '14. After that date, BoI inform me that their new regulatory rules will apply (whatever they are).

I would appreciate any help and advice.

Thanks
Toddis

Tykva

I think fixing for 5 years is better as they are almost certainly to rise next year

Thrugelmir

5 year fixed rates are the way to go. If you are looking for medium term certainty.

After the 26th April. There'll be a full review on any product switch. All part of responsible lending policy as laid down by the FCA in the Mortgage Market Review.

toddis

They did offer me a 4yr fixed rate but it was at 4.59% which didn't seem worthwhile.

My main point is whether I should give up my current tracker mortgage or not.

d70cw6

presume you have a fairly high LTV. have you searched the market for better deals?

toddis

I currently have a 59% LTV and I've been in touch with London & Country, and await their call back.

Thrugelmir

toddis wrote: »

They did offer me a 4yr fixed rate but it was at 4.59% which didn't seem worthwhile.

My main point is whether I should give up my current tracker mortgage or not.

BOE base rate is now expected to start rising next year.

There's already been upward movement in 5 year rates recently.

Wholesale monbey markets can move independtly of the BOE.