Jack Black
Registered User
- Messages
- 2
Hi All
Currently looking at switching options and trying to figure out the best approach. We are both in our early 40s and have 27 years remaining on the term so as part of any change we will be looking to knock 4 years off the term.
Current situation:
- 2 years into a 29yr mortgage, 406k outstanding
- Current value of property ~600k
- 3 yr fixed with BOI @ 3.45%, monthly repayments of 1950
- Got 2% cashback from BOI on drawdown of mortgage (8k), with another 1% due in 2022
Have spoken to BOI:
- They offered a new rate of 2.8%, reducing the term to 23 yrs = 1995/month
- Breakage fee of 306 euro whether we take the new rate or switch lender
Spoke to EBS:
- They have offered a rate of 3% (3yr fixed) over 23 years = 2040/month
- Cashback of 8k, with a further 4k to come
Over 3 years the 8k cashback from EBS outweighs slightly lower repayments with BOI + switching fees of around 3100. ( Additional 50/month * 36 months = 1800 +
Breakage fee = 300 +
Fees = 1000)
Any thoughts on whether I'm being over simplistic here? It seems clear to me that the EBS offer is the one to go with.
Thanks
Jack
Currently looking at switching options and trying to figure out the best approach. We are both in our early 40s and have 27 years remaining on the term so as part of any change we will be looking to knock 4 years off the term.
Current situation:
- 2 years into a 29yr mortgage, 406k outstanding
- Current value of property ~600k
- 3 yr fixed with BOI @ 3.45%, monthly repayments of 1950
- Got 2% cashback from BOI on drawdown of mortgage (8k), with another 1% due in 2022
Have spoken to BOI:
- They offered a new rate of 2.8%, reducing the term to 23 yrs = 1995/month
- Breakage fee of 306 euro whether we take the new rate or switch lender
Spoke to EBS:
- They have offered a rate of 3% (3yr fixed) over 23 years = 2040/month
- Cashback of 8k, with a further 4k to come
Over 3 years the 8k cashback from EBS outweighs slightly lower repayments with BOI + switching fees of around 3100. ( Additional 50/month * 36 months = 1800 +
Breakage fee = 300 +
Fees = 1000)
Any thoughts on whether I'm being over simplistic here? It seems clear to me that the EBS offer is the one to go with.
Thanks
Jack