I have an offset mortgage at 5.15% and it costs me €1617 per month (excl TRS). I am thinking about switching to another mortgage that will cost me €1516 per month (excl TRS). This a savings of €101 per month and €1215 per year. If I save €23595 in my current account that is linked to the offset mortgage, it will save me mortgage interest of €1215 (5.15% of €23595). So this means that if I do save that amount in my current account that is linked to the offset mortgage, I will no better or no worse off than switching to the mortgage which will cost me €1516 per month. Is this correct? Another other factors I need to consider?
What happens then in Year 2? Just can't get my head around this.
Please help. Thanks.
What happens then in Year 2? Just can't get my head around this.
Please help. Thanks.