Ignore the monthly repayment amount, and look at the interest charge.Monthly repayments for Ulster Bank are €1403.56 and for EBS are €1517.48. This would mean more money at the end of the month with Ulster bank, but more cash in hand from EBS - could be put back into mortgage at a later date
Perhaps more importantly, rates are widely predicted to go up next year, so the benefit you gain in the first two years could easily be wiped out by higher interest rates charged from year three. If you are not planning to move for a few years, I would strongly recommend that you view the mortgage as the long-term commitment that it is, and set yourself up by going with the best long-term option available.
Another thing to think about is whether you are likely to be able to make any overpayments to the mortgage. Doing so can save far more than small differences in interest rates, or up-front cash incentives. Ulster Bank allows mortgage holders to pay off up to 10% of the opening annual mortgage balance while on a fixed rate without any penalties, whereas you can't to that with EBS (KBC and BOI also allow an element of overpayments without penalties).
Best regards,
Dave Curry (broker)
https://www.linkedin.com/in/davecurryirl
Don't confuse ECB rate policy with interbank funding rates, especially fixed term rates.Earliest is summer 2019 and that's only if inflation is near 2%
Ah ok I assumed they were invariably linkedDon't confuse ECB rate policy with interbank funding rates, especially fixed term rates.
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