am looking at rates on [switcher.ie](https://switcher.ie) and BofI and avant both have 4 yr fixed rates. 1.9% for BofI and 1.95% for Avant. But the APRC for BofI is 3.2% and Avant is 2.02%. big difference.
Am now confused as to which is better. I would have thought 1.9 was better than 1.95 but 2.02 is way better than 3.2.
Anyone able to eli5?
btw, now may be a good time to review your mortgage. rates may start to go up soon.
4 comments
APR = interest + fees usually
Don’t worry too much about the APRC That’s the estimated interested over the loans entire lifetime. So that’s what they think it might be factoring in your fixed rate ending. But at that point you can always switch mortgages again.
Go for the lowest fixed rate percentage.
And if your going to switch start today. Huge back log lots of people trying to lock in before rates rise. I’m hoping to finalise at 2.2% just by the skin of my teeth and I started the process in early February.
APR accounts for the entire mortgage period not the fixed period.
The reason for the difference is that you are just looking at the first 4 years of your mortgage whereas you probably have 20-25 years after your first 4 years. For the first 4 years, bank of Ireland are giving you a better rate but the average rate over the lifetime of the mortgage is lower with Avant. That is because Bank of Ireland has a higher variable rate and both banks will switch you to a variable rate after your fixed rate ends after 4 years.
Now you can fix again in 4 years time but nobody knows what the rates will be. In fact, the 2.02 and 3.2 figures might be completely incorrect if both banks increase their variable rates over the next few years.
Essentially, nobody can tell you which one is actually better because nobody knows what the mortgage rates will be in 4 years time but traditionally, BofI usually have the highest variable mortgage interest rates in Ireland.