Odd mortgage question

[Smart]

I am thoroughly confused here. My fixed rate mortgage has recently expired so we slipped into the variable which is fine and we are saving about €200 a month from what we were paying.

But I am looking at fixing again before the next hike which the poor banks will have to impose.

So, on my last fixed I was paying 5.05%, whereas if I am to fix now, they would want 4.7%. Well and good, but he then tells me that my payment will have gone up by about €30 a month? To me, that makes zero sense. I know mortgage interest relief comes into play, but still, how could my payment go up if the interest rate is less?

Any takers?

 

[fizzelina]

Like you said there is TRS tax relief at source and each year of your mortgage it decreases so check how much TRS you were getting previously and how much you now get and that could account for the difference.