#### Brendan Burgess

##### Founder

- Messages
- 41,550

Almost every post on this topic is wrong. No matter how often it is pointed out, people look at the wrong figures. They use mortgage calculators when they don't need them. Most of the time, you can do the figures in your head.

Example

You have a €200,000 mortgage with Bank of Ireland and it's coming to the end of the fixed rate, and the best rate available to you is 3 years at 3%

You can switch to Avant and fix for three years at 2%

The costs of switching are €1,000

Here is the correct calculation :

The annual reduction in mortgage rate is 1%

1% of €200,000 is €2,000

The cost of switching is €1,000

So for an upfront cost of €1,000, you will save €2,000 a year for three years.

It is actually that simple.

**Do not look at the monthly repayments - they are misleading**

Do not look at the savings over the remaining term of the mortgage - it too is misleading

The main thing to look at is the difference in interest rates.Do not look at the savings over the remaining term of the mortgage - it too is misleading

The main thing to look at is the difference in interest rates.

Example

You have a €200,000 mortgage with Bank of Ireland and it's coming to the end of the fixed rate, and the best rate available to you is 3 years at 3%

You can switch to Avant and fix for three years at 2%

The costs of switching are €1,000

Here is the correct calculation :

The annual reduction in mortgage rate is 1%

1% of €200,000 is €2,000

The cost of switching is €1,000

So for an upfront cost of €1,000, you will save €2,000 a year for three years.

It is actually that simple.

Last edited: