Your AIB Mortgage advisor can tell you exactly what our current rates are and how they translate into monthly repayments, but this is how they work:
With a Variable Rate:
Your monthly repayments may rise and fall as market interest rates change over the life of your mortgage
You have the option to make early or lump sum repayments so you can reduce the overall cost of your mortgage and pay the loan off early
You can also switch to a Fixed Rate any time you want.
With a Fixed Rate:
Your repayments will stay at the same level for an agreed period of time (up to 10 years)
This gives you certainty and protects you from interest rate increases, but you generally pay a higher rate for this peace of mind and your repayments will not reduce if market interest rates fall
A breakage cost may be incurred if you wish to pay off a lump sum during the fixed rate term, or switch to a variable rate.
The Split Rate option allows you to split your mortgage loan between Variable Rate and Fixed Rate, in whatever proportion you choose. This gives you peace of mind on part of your mortgage repayments while at the same time availing of the flexibility that a variable rate mortgage can provide.