I would be grateful for some advice on which mortgage option I should choose.
I am a FTB, borrowing €250k with a LTV of just less than 75%. I would like to keep the initial payments as low as possible, as I do expect my income to rise over the next few years.
The options are as follows:
1. First Active - 1 year fixed at 4.15%, then tracker +0.95%, 2 years interest only, 40 year term
2. AIB - 1 year discounted tracker +0.6%, then tracker +1.1%, 1 year interest only, 35 year term, €2,000 payment from aib on drawdown of mortgage.
I understand the general principle is to choose the best rate (which would mean FA) but by my calculations it would be 7-8 years before the difference would exceed the €2,000 upfront payment from AIB and I may well be able to switch to a better rate at that time.
Thanks.
I am a FTB, borrowing €250k with a LTV of just less than 75%. I would like to keep the initial payments as low as possible, as I do expect my income to rise over the next few years.
The options are as follows:
1. First Active - 1 year fixed at 4.15%, then tracker +0.95%, 2 years interest only, 40 year term
2. AIB - 1 year discounted tracker +0.6%, then tracker +1.1%, 1 year interest only, 35 year term, €2,000 payment from aib on drawdown of mortgage.
I understand the general principle is to choose the best rate (which would mean FA) but by my calculations it would be 7-8 years before the difference would exceed the €2,000 upfront payment from AIB and I may well be able to switch to a better rate at that time.
Thanks.