EBS Best Buy Rationale?

[TheManWho]

"Their rates are slightly higher than AIB's, but they give 2% cash back without any conditions. In other words, if some other lender cuts their rates after a few months, but EBS doesn't, you can switch to the other lender and you do not have to give the cash back."

http://www.askaboutmoney.com/threads/mortgage-rates-best-buys.197714/

Say you are getting 250k of a mortgage at 80% LTV.

Is the rationale for EBS recommendation that the 5k cash back you get will cover the difference in rates between EBS and AIB for a period of time?

Assuming you should factor in 1-2k for moving mortgage? (some bank will cover costs of moving mortgage, some won't)

So you've to calculate how long 3k cash back with EBS (@ 3.5%) will keep you ahead of AIB (3.2%)? At which point you obviously have to move as you will end up making a loss?


Is it EBS clearly the best buy for all scenarios of LTV and offers with other banks? UB I see have 3.1% for 80% LTV (that 4% below EBS) and 1.5k for legal fees - how long would the cashback last you before you're in a loss and have to move anyway?

I'm guessing there are calculators out there that will easily compare these rates for me ?

 

[trasneoir]

It looks like the best buy today is to switch to EBS, take their cash, then go to AIB tomorrow and take theirs. The day after that, it looks like you'll be able to go to somebody else http://www.independent.ie/business/...500-to-take-out-150000-mortgage-35003874.html

 

[Brendan Burgess]

I started this thread before seeing yours.

Where are we now on Best Buys now that BoI has dropped its clawback of the 2% cash back?

As pointed out elsewhere, metric , you approach the question all wrong.

Just look at interest rates. Not repayments.

Brendan