BananaRepublic
Registered User
- Messages
- 4
It would be great to hear some of your opinions are on what I should do please. What would you do in my scenario?
I am currently on a variable rate of 3% with EBS. I have 300k outstanding on mortgage, the LTV is <50%. The term remaining is 30yrs. I've been fortunate enough to be in a position to overpay 600euro a month (I'm pushing this overpayment via standing order as opposed to having changed my terms with EBS).
I am considering moving to BOI's 5 year fixed deal, interest rate they're offering me is 3%.I understand overpayments allowed are limited if switch to fixed and so if switching I'd look to take out a shorter term mortgage so effectively the monthly overpayment that I have been making would be rolled into the new monthly commitment.
The Pros and Cons as I see them are;
Pros:
> *IF* rates don't decrease, I'd be up €5,500 from the 9k cashback (€6k now + €3k in 5 yrs) after I pay 1200 x 2 on solicitors to move to BOI now and from them in 5yrs (I would not stick with BOI after the term considering their non-competitive variable rates)
> Would be better off on 3% fixed if variable rates go up.
Cons:
> In moving, if I was also to reduce term to overcome overpayment constraint i'd loose the flexibility of being able to fall back to the lower about that i'm committed to currently
> Possibility that rates will decrease following the pressure the banks are under to align to the rest of Europe but I'd be be locked in until 2022.
Am I mad to fix for 5yrs considering I'm in a fortunate position to have lots of options given my low LTV.
Thank you very much for your words of wisdom
I am currently on a variable rate of 3% with EBS. I have 300k outstanding on mortgage, the LTV is <50%. The term remaining is 30yrs. I've been fortunate enough to be in a position to overpay 600euro a month (I'm pushing this overpayment via standing order as opposed to having changed my terms with EBS).
I am considering moving to BOI's 5 year fixed deal, interest rate they're offering me is 3%.I understand overpayments allowed are limited if switch to fixed and so if switching I'd look to take out a shorter term mortgage so effectively the monthly overpayment that I have been making would be rolled into the new monthly commitment.
The Pros and Cons as I see them are;
Pros:
> *IF* rates don't decrease, I'd be up €5,500 from the 9k cashback (€6k now + €3k in 5 yrs) after I pay 1200 x 2 on solicitors to move to BOI now and from them in 5yrs (I would not stick with BOI after the term considering their non-competitive variable rates)
> Would be better off on 3% fixed if variable rates go up.
Cons:
> In moving, if I was also to reduce term to overcome overpayment constraint i'd loose the flexibility of being able to fall back to the lower about that i'm committed to currently
> Possibility that rates will decrease following the pressure the banks are under to align to the rest of Europe but I'd be be locked in until 2022.
Am I mad to fix for 5yrs considering I'm in a fortunate position to have lots of options given my low LTV.
Thank you very much for your words of wisdom