Hi
We have just got a bid accepted on a property.
The purchase cost is €650k, we are contributing cash €150k, which leaves a mortgage amount €500k (LTV 77%)
We are holding back about cash savings of €40k for contingency
The mortgage lender (KBC) is offering a 28 year term with fixed or variable rates, with the option of a split between fixed/variable rate.
The options available are listed below;
·50% Variable (3.99%/4.06% APR) & 50% 2 year fixed (4.49%/4.18% APR): €2,545
·50% Variable & 50% 3 year fixed (4.75%/4.31% APR): €2,585
·50% Variable & 50% 5 year fixed (4.70%/5.25% APR): €2,657
If we chose for 100% of the Mortgage to be repaid on a variable basis, the current monthly repayments would be €2,475 (based on current rates)
We are hoping to get your opinion on what option you think may be best, obviously there is a large element of speculation in relation to the variable rate option, and a strong likelihood that the variable rate will rise given the current ECB rates are at an all time low.
Thanks
We have just got a bid accepted on a property.
The purchase cost is €650k, we are contributing cash €150k, which leaves a mortgage amount €500k (LTV 77%)
We are holding back about cash savings of €40k for contingency
The mortgage lender (KBC) is offering a 28 year term with fixed or variable rates, with the option of a split between fixed/variable rate.
The options available are listed below;
·50% Variable (3.99%/4.06% APR) & 50% 2 year fixed (4.49%/4.18% APR): €2,545
·50% Variable & 50% 3 year fixed (4.75%/4.31% APR): €2,585
·50% Variable & 50% 5 year fixed (4.70%/5.25% APR): €2,657
If we chose for 100% of the Mortgage to be repaid on a variable basis, the current monthly repayments would be €2,475 (based on current rates)
We are hoping to get your opinion on what option you think may be best, obviously there is a large element of speculation in relation to the variable rate option, and a strong likelihood that the variable rate will rise given the current ECB rates are at an all time low.
Thanks
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