3 year kbc fixed rate coming to an end, time to switch?

A

Aph2016

Registered User
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Hi All,

I have a 3 year fixed rate coming to an end in September, LTV is 82.25%. Current fixed rate is 2.65%. Any advice on what a good switch would be? Would like a cashback deal but that would mean a higher rate.

Also we would be looking to potentially move in 2 or 3 years time so wanted to get some opinions on if this should impact on our switch choices?
 
Your choice is really limited now to AIB, BoI or permanent tsb.

The default option would be to fix with KBC for three years at 2.3%.

Then when you are ready to trade up, the break fee should be quite low.

And BoI won't be able to bump up your rate when they take over your mortgage.

BoI will be more expensive over three years.

For a mortgage of €100k.

Interest with KBC @2.3% for three years = 6.9%

Interest with BoI @3% for three years = 9% less 2% up front = 7%

+ €1,500 switching costs plus the hassle.

So you are better off staying with KBC.

Brendan
 
You could fix with KBC for two years instead of three.

But then when the two years is up you will pay a very high variable rate to BoI or pay 2.9% one year fixed rate.

It just seems easier to fix for three years and pay the penalty if you trade up before the three years.

Brendan
 
Thanks for the advice Brendan, KBC 2 or 3 year fixed rate probably makes the most sense.
 
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