I'm not sure can I ask questions in this thread, so do move it if not.
I currently have a mortgage left of about €183,000 to finish in 2034. As I'll be well over retirement age then, I've been overpaying it and it's actually due to finish in 2029; I'm looking to overpay an additional amount to reduce the term further. The current rate is 3.7% with EBS, variable.
So I'm looking at this going for a fixed rate with great interest, but little knowledge. My simple arithmatic is:
183,000 @ 3.7% = 6771 current variable rate (EBS)
183,000 @ 3.5% = 6300, saves me €471 (EBS fixed rate)
183,000 @ 2.9% = 5307, saves me €1,464 (KBC 1 yr fixed) + €3000 cashback
183,000 @ 3.35% = 6130.5, saves me €640.5 (BoI 1 year fixed) + €3660 cashback
183,000 @ 2.53% = 4629.9 saves me €2,141.1 (BoI 3 yr fixed) + €3660 cashback
Am I on the right track? Would it really be that worthwhile to switch? The idea is that I'd save my extra payments of about 500 pm in an investment account somewhere to add to the mortgage when I go back to variable, assuming the market will be better for variable in 3 years time.
The other question of course is, would I be an acceptable switcher, seeing I actually retire in 2023. My lump sum should pay off any outstanding balance then, I hope.
I'd be grateful for advice, opinions, and corrections to my calculations.
I currently have a mortgage left of about €183,000 to finish in 2034. As I'll be well over retirement age then, I've been overpaying it and it's actually due to finish in 2029; I'm looking to overpay an additional amount to reduce the term further. The current rate is 3.7% with EBS, variable.
So I'm looking at this going for a fixed rate with great interest, but little knowledge. My simple arithmatic is:
183,000 @ 3.7% = 6771 current variable rate (EBS)
183,000 @ 3.5% = 6300, saves me €471 (EBS fixed rate)
183,000 @ 2.9% = 5307, saves me €1,464 (KBC 1 yr fixed) + €3000 cashback
183,000 @ 3.35% = 6130.5, saves me €640.5 (BoI 1 year fixed) + €3660 cashback
183,000 @ 2.53% = 4629.9 saves me €2,141.1 (BoI 3 yr fixed) + €3660 cashback
Am I on the right track? Would it really be that worthwhile to switch? The idea is that I'd save my extra payments of about 500 pm in an investment account somewhere to add to the mortgage when I go back to variable, assuming the market will be better for variable in 3 years time.
The other question of course is, would I be an acceptable switcher, seeing I actually retire in 2023. My lump sum should pay off any outstanding balance then, I hope.
I'd be grateful for advice, opinions, and corrections to my calculations.