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Hi,
We are in the process of switching our mortgage from UB and have just received AIP from Avant. We have a rough idea of what the best option might be for us but would be interested in getting other peoples views in case there is anything we haven't considered.
Some details are -
Currently with UB on a 4 year fixed rate of 2.6% ending this September, outstanding balance just under €410,000.
LTV < 50%.
AIP for €400,000 from Avant. We will use savings for the difference and make this payment to UB prior to requesting the break fee as advised on this forum.
Fixed term with UB ends in September, however any break fee is more than likely to be covered by the reduction in interest paid over the remaining 6 or so months by switching.
Based on my age we could get up to a 26 year term with Avant. We are undecided as to whether we should go for say 25 years (monthly repayment around 350 less than current) or 20 years (monthly repayment same as current). In either scenario we intend to overpay. I understand the longer term gives more flexibility, etc. again as learned on this forum.
In terms of how much we might overpay I can't see us ever exceeding or coming close to the annual 10% overpayment allowance. Our savings are modest enough, though we have no debt outside of our mortgage.
First and last home, unless we downsize in retirement.
Kids aged 6 & 7, so plenty of other costs down the line.
Currently allocating 20% of my salary to my work pension, considering upping this to the permitted 25% based on my age. I guess I'm prioritizing pension building over mortgage debt reduction here. My wife contributes to her HSE pension scheme, with whom she works permanent part-time (3 days per week).
My gut says to go for 7 years at 1.95%, on a 20 year term, but would be interested in any other points of view.
Thanks,
GN
We are in the process of switching our mortgage from UB and have just received AIP from Avant. We have a rough idea of what the best option might be for us but would be interested in getting other peoples views in case there is anything we haven't considered.
Some details are -
Currently with UB on a 4 year fixed rate of 2.6% ending this September, outstanding balance just under €410,000.
LTV < 50%.
AIP for €400,000 from Avant. We will use savings for the difference and make this payment to UB prior to requesting the break fee as advised on this forum.
Fixed term with UB ends in September, however any break fee is more than likely to be covered by the reduction in interest paid over the remaining 6 or so months by switching.
Based on my age we could get up to a 26 year term with Avant. We are undecided as to whether we should go for say 25 years (monthly repayment around 350 less than current) or 20 years (monthly repayment same as current). In either scenario we intend to overpay. I understand the longer term gives more flexibility, etc. again as learned on this forum.
In terms of how much we might overpay I can't see us ever exceeding or coming close to the annual 10% overpayment allowance. Our savings are modest enough, though we have no debt outside of our mortgage.
First and last home, unless we downsize in retirement.
Kids aged 6 & 7, so plenty of other costs down the line.
Currently allocating 20% of my salary to my work pension, considering upping this to the permitted 25% based on my age. I guess I'm prioritizing pension building over mortgage debt reduction here. My wife contributes to her HSE pension scheme, with whom she works permanent part-time (3 days per week).
My gut says to go for 7 years at 1.95%, on a 20 year term, but would be interested in any other points of view.
Thanks,
GN
