Considering switching to KBC - does it make sense?

S

SuperMario

Registered User
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I took out a mortgage with EBS last year.

€253,500 mortgage over 35 years on a house valued at approx. €420,000.

Every month the mortgage was overpaid by €1,000.

Interest rate is 3.5% (60% LTV).

At the end of year 1 (which is slowly approaching) the outstanding mortgage will be €237,548.

As EBS have not dropped the interest rate today I am looking to move.

I want to maintain payments at €2,048 (€1048 + €1,000) indefinitely.

I see the best option as:

KBC @ 3.05% plus 2% cashback


Cashback €4,751

Expenses (approx.) €2,000

Net Cashback €2,751


2 year mortgage cost €22,086

2 year less cashback €19,335


5 year mortgage cost €55,216

5 year less cashback €52,465


I can’t see any reason I would stay with EBS after today. But is there a better option than switching to KBC?


Once my LTV is below 50% I would like to switch to AIB as they have the best rates in this range.
 
Correct me if I'm wrong but AIB have the best rate in your current LTV bracket as well. If you go straight to AIB now, since you will get 2.95% rate as you are between 50% LTV and 80% LTV. With AIB you will get E2k to cover switching. Perhaps you could run the numbers on this rate and post delta?

I am in almost identical position to this. As per @Dauhee in https://www.askaboutmoney.com/threa...l-borrowers-but-ebs-yet-to-cut-theirs.205357/, there is no good reason to remain with EBS now.
 
AIB don't have the 2% cash back like KBC. They have €2,000 for switchers.

Cashback €2,000

Expenses (approx.) €2,000

Net Cashback €0


2 year mortgage cost €21,777

2 year less cashback €21,777


5 year mortgage cost €54,443

5 year less cashback €54,443

Therefore the delta over 2 years is €2,442 and the delta over 5 years is €1,978.

Based on the above I believe my best option would be to switch to KBC. Any anyone agree or disagree with the above?

Another point of view would be great, thanks
 
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