Choosing BOI Mortgage

[Private]

My mortgage eligiblity is as follows

- first-time buyer
- new mortgage customer
- LTV of >80%
- loan amount > 250k so eligible for high-value mortgage rates
- eligible for a green discount of 0.3%

Considering the interest rate hikes, I prefer the sweet spot of 5 years, and considering below mortgage offers

[1] 5 years, 2.7% interest with 2% cashback upfront and 1% cashback on the 5th anniversary (so cashback totals to 9k at the end of 5 years for me)

[2] 5 years, 2.2% with no cashback option

[3] 4 years, 1.9% with no cashback option

Can you please share your thoughts on the above?

 

[Private]

With Overpayment of 65 eur per month, below is the calculation

[1] 5 years 2.7% interest

	Interest Paid	38,440.47
	Principal Paid	31,754.13
	Outstanding Balance	268,245.87

You can then use the 9k cashback to reduce the outstanding balance

[2] 5 years 2.2% interest

	Interest Paid	31,184.39
	Principal Paid	34,207.21
	Outstanding Balance	265,792.79

 

[MsCutha]

I switched recently and went with BOI (not my first choice) 1.9%. In your case I will look at Haven/AIB and Avant rates. You may pay a slightly higher rate with them but you will not be subjected to predatory rates at the end of your fixed term (this is quoting @Brendan Burgess and @Paul F as I’m not that savvy). I will be switching in 4 years time but I’m expecting interest rates to rise. The plan for now is to overpay as much as possible in this 4 years.

Also I will ignore cash back offers as they make their money through higher interest rates.

 

[Brendan Burgess]

if you are taking out a mortgage, go to AIB or Avant. Avoid Bank of Ireland and ptsb as they have higher charges for their existing customers.

Of course, you intend to switch, but there are many reasons why you might not be able to and so you will become a prisoner of Bank of Ireland's predatory rates.

Key Post - Mortgage switching / re-fixing – breakage fee calculator and savings estimates for your case (Ireland)

I am creating this thread as a place where people can request guidance on whether they should switch their mortgage to another lender (also called mortgage refinancing or remortgaging) and, if so, which lenders and interest rates they might consider switching to. You are allowed to switch even...

www.askaboutmoney.com

 

[Private]

I currently have loan offer with BOI for 2 years fixed at 2.6% and cashback option.

This is what I was planning initially-

[1] Get 2% cashback 6k post drawdown

[2] I have mortgage saver account with them so will get approx 1.6k cashback post DIRT

[3] At end of fixed term switch the mortgage to Avant/Heaven/AIB

I'm in a stable job atleast for next 2 years and have no plan to switch companies, should have decent LTV, not on probabation, no salary circumstance change etc. So 2 years will give me the guarantee to switch

Do you forsee any problems with this approach? Ofc interest rates may not be the same low in 2 years but going for cheaper rate at that time or fixing long term (4 to 5 years) now itself ?