Switch mortgage to bank with best rates
- Thread starter Gazzaman
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Coldwarrior
Registered User
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Your balance is low so the cashback offers don't make much sense in this case, I'd suggest looking at Ulster Bank's fixed rates (2.3% for 2 years, 2.6% for 4 years etc). They offer a flat 1500 euro to cover switching/legal costs also. KBC is another alternative that's worth a look.
Brendan Burgess
Founder
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Best Buy for <50% LTV mortgages i.e. the lowest mortgage rates available
While you are thinking about it you should ask AIB for their 2.75% rate for mortgages <50% LTV
Assuming you get 2.75% from AIB, you would be payin 0.45% more than you would pay to Ulster Bank which would be costing you €360 a year for the first two years.
Given that AIB has been the fairest lender in terms of passing on rate cuts automatically to existing customers, you should consider staying with AIB. While you will save €720 over two years by switching, you might need to switch again after two years. At that stage, it might not be worth doing because of the legal costs and hassle.
Brendan
While you are thinking about it you should ask AIB for their 2.75% rate for mortgages <50% LTV
Assuming you get 2.75% from AIB, you would be payin 0.45% more than you would pay to Ulster Bank which would be costing you €360 a year for the first two years.
Given that AIB has been the fairest lender in terms of passing on rate cuts automatically to existing customers, you should consider staying with AIB. While you will save €720 over two years by switching, you might need to switch again after two years. At that stage, it might not be worth doing because of the legal costs and hassle.
Brendan
Hi Brendan
Just about to make the swithch.
Havent a notion what the saving are or indeed how to work em out.
I'm going to stick with AIB on the 2.75% rate for mortgages <50% LTV
My situation is
74,500 left to pay and currently on about 3.1% Variable
6.5 years left to run. and repayments are €1041 a month.
What saving can i expect....roughly.
Thanks for your time
Just about to make the swithch.
Havent a notion what the saving are or indeed how to work em out.
I'm going to stick with AIB on the 2.75% rate for mortgages <50% LTV
My situation is
74,500 left to pay and currently on about 3.1% Variable
6.5 years left to run. and repayments are €1041 a month.
What saving can i expect....roughly.
Thanks for your time
John Locke
Registered User
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- 51
You could use an online mortgage calculator, but it isn't that difficult to get a rough figure.
Interest rate is how much the bank charge per year for the loan.
Currently: 3.1% of 74,500 = 74500 * 0.031 = 2309.5
Will be: 2.75% of 74,500 = 74500 * 0.0275 = 2048.75
A saving of 260 in the first year roughly, about 20 a month. You won't see your repayment fall by quite that amount because you will be paying slightly more off the debt, but if you add up the reduction in repayment and the additional amount that you pay off the loan, it will come to about that.
Interest rate is how much the bank charge per year for the loan.
Currently: 3.1% of 74,500 = 74500 * 0.031 = 2309.5
Will be: 2.75% of 74,500 = 74500 * 0.0275 = 2048.75
A saving of 260 in the first year roughly, about 20 a month. You won't see your repayment fall by quite that amount because you will be paying slightly more off the debt, but if you add up the reduction in repayment and the additional amount that you pay off the loan, it will come to about that.
John Locke
Registered User
- Messages
- 51
Again, in very rough terms. You'll save 260 in interest payments this year, but this declines as the loan value declines, to nearly 0 at the last payment.
If we imagine it declines in a straight line (it doesn't but is close enough in this case), then the average saving over the rest of your loan will be about half of 260. So, 130 for 6.5 years.
130 * 6.5 = 845 over the rest of the loan.
Divide that by the number of payments you have left, 6.5 * 12 monthly payments = 78.
845 / 78 = 10.83
I'd expect your monthly payment will go down by roughly 11 euros a month.
If we imagine it declines in a straight line (it doesn't but is close enough in this case), then the average saving over the rest of your loan will be about half of 260. So, 130 for 6.5 years.
130 * 6.5 = 845 over the rest of the loan.
Divide that by the number of payments you have left, 6.5 * 12 monthly payments = 78.
845 / 78 = 10.83
I'd expect your monthly payment will go down by roughly 11 euros a month.