Hi folks, I'm caught up between the UB and BOI rates. My situation is LTV of 80% and a mortgage of 392,000. I'm trying to calculate the cheapest one to go with, I will base both over 5 years. I will also assume (incorrectly I'm sure but need to base it on some assumption) that the VR will stay the same or at least they will rise/fall together. UB seem to be more favourable here as they pass on rates to existing customer, BOI I believe don't?
Option 1: Go with a variable rate, 3.35% with UB and 1,500 back in legal fees. 4.2% with BOI and 2% cashback. I've calculated the repayments to be as follows:
UB, 5 years at €1,586.22/month so over 60 months this is €95,172.96 - €1500 legal fees = €93,672.96
BOI, 5 years at €1,783.01/month so over 60 months this is €106,980.83 - €7,840.00 2% cashback = €99,140.83
Clearly UB are the winners here.
Option 2: Go with a 5 year fixed rate. 3.6% with UB and 1,500 back in legal fees. 3.8% with BOI and 2% cashback. I've calculated the repayments to be as follows:
UB, 5 years at €1,642.89/month so over 60 months this is €98,573.58 - €1500 legal fees = €97,073.58
BOI, 5 years at €1,688.97/month so over 60 months this is €101,337.97 - €7,840.00 2% cashback = €93,497.97
Now we flip to BOI winning and BOI winning overall compared to option 1 if UB don't revise their rates downwards during the 5 years.
Option 3: This is where I am unsure, I could go with a UB 3year rate of 3.2% and BOI rate of 3.6% but then what do I assume I will pay for the remaining 2 years while I would have to wait for the BOI clawback to finish.
Is anyone able to verify that my calculations are correct?
The 3.35% VR with UB seems to be the best on the market currently, does anyone know if they have a rate cut in the future will this special rate also get a cut? It's their high value customer rate when you borrow more than 250k and stay within 3.5 times your annual salary.
Is there any other banks I should be looking at? UB seem to be the best across the board at the moment as far as I can see.