Mortgage switch options

random2011

Frequent Poster
Messages
190
Looking for thoughts on a potential switch.

Current Mortgage 265k @ 2.8% Fixed with BOI.
Current Monthly repayment - 1302 .....23 years left
Existing 2 year fixed due to end in August 2020 and new best FR option is 2.9% (1313) or variable at 4.5%
Due to receive 1% of remaining Cashback offer from BOI in 2023 - 2800 euros - will lose this if we switch

Looking at switch to KBC
2 year fixed at 2.3% - 1237 euro / month..savings of 75 euros a month approx versus existing payments today
3000 euros switch offer
Solicitor Fees 1200 approx
Valuation 127 euros
Left with approx 1500-1700 after fees approx

Seems if we didn't have the 1% Cashback from BOI still to collect then switching to KBC would be very competitive. Even though they have 3k switch offer themselves , most is eaten up by solicitor fees.

Worth the hassle of moving or stick with BOI at 2.9%???
 

Laughahalla

Frequent Poster
Messages
190
75 *36 = 2700 + ~ 1500 = 4200 -2800 = 1400 to you over 3 years. Hassle factor and time gathering information and meeting the bank, possible time off work.

it's ok but not super attractive.

Saying that, I'm doing something similar with KBC by going from 3% to 2.25% and foregoing my final 1% from the bank in 4 years time
 
Last edited:

RedOnion

Frequent Poster
Messages
4,426
The calculations are completely wrong.

You're saving more than 75 per month.

265k * 0.6% / 12
Interest savings is c. 132 per month.

You'll pay off capital quicker on a lower interest rate, so the repayment amount isn't reduced by the full saving.
 

random2011

Frequent Poster
Messages
190
Could also add I will have to open a current account with KBC and avoid account fees in the short term. So probably another 250 approx savings. it will really build down to how easy it will be to switch. The hassle is awful.
 

random2011

Frequent Poster
Messages
190
I am also considering to reduce the term from 23 to 20 years which increases the monthly by 140 to 1378.I’m assuming without doing the figures this would be better than overpaying the 23 year option (1237 a month) by same amount or whatever the max allowed is. I like the thought of reducing the length. In 2 years time I could switch again and may have another Cashback option and look at reducing term. We have already trimmed the length by 4 years by switching. This would be another 3 years removed.
 

TheBig40

Registered User
Messages
20
Could also add I will have to open a current account with KBC and avoid account fees in the short term. So probably another 250 approx savings. it will really build down to how easy it will be to switch. The hassle is awful.
It is a bit of a hassle, I just switched from BOI to KBC. Each time I got annoyed by yet more questions/paperwork I just thought how much easier filling in the paper work was to earn the 3k than doing my actual day job to earn the savings.
 

random2011

Frequent Poster
Messages
190
Started the process today. Hope to be able to get this over the line before auto moving to variable rate at BOI. Thought it was strange that BOI would not try to entice me to stay. All I asked for was to remain on the existing 2.8% versus the 2.9% they offered. There saying 3 months to complete which seems excessive.
 

Boyd

Frequent Poster
Messages
1,586
If "they" are KBC, then I wouldn't be surprised it would take three months, at least. From my experience they are the slowest.
 
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