Hi,
I'm finally looking to take some action on switching mortgage provider.
1) would below calculations make it worth the work involved. (Eg saving 2k over the various years)
2) would there be any concerns in going to BOI, as in the variable best buys, it says to avoid them ( tho I'm going for fixed rate initially.). Anything to worry about with BOI though - maybe when fixed rate ends could I get caught then or can just go to a new fixed rate ( but if existing customer, might the deals only be for new customers?).
Thanks for any input/ advice.
Value of home. €170,000
Mortgage left. €90,000
Current provider. EBS
Current rate. 3.7. Variable.
Proposed new provider. BOI .
Rate ( 3 yr fixed). 3.1 (3 yr fixed)
Calculations.
2% cash back. =. €1,800
1% after 5 years. =. €900( is this on initial loan amount as I've assumed here or on remaining loan amount in 5 years.)
BOI website says I'll save approx €250 per year for 3 years = €750. (3.7% vs 3.1%)
So savings = €3,450. (1,800 + 900 + 750).
Cost of switch ??? - no idea - say. 1,450??? Any idea if that's about right ballpark?
Hence savings = 2,000.
I plan on putting loan as a split with 15k variable and 75k fixed. Get 2% cash back on 90k and then week or so later pay off the 15k variable part in full.
After 3 years, presume try another fixed rate in BOI, no idea where rates will be then. But if they go up sur the current 3.7 variable with ebs would prob go up anyway.
The main reason I'm considering switching is that BOI will take the ltv into account whereas ebs won't ( as I'm existing mortgage customer with them). That lets me get 3.1% vs 3.7% for 3 yrs anyway, and then the cash back piece too.
I'm finally looking to take some action on switching mortgage provider.
1) would below calculations make it worth the work involved. (Eg saving 2k over the various years)
2) would there be any concerns in going to BOI, as in the variable best buys, it says to avoid them ( tho I'm going for fixed rate initially.). Anything to worry about with BOI though - maybe when fixed rate ends could I get caught then or can just go to a new fixed rate ( but if existing customer, might the deals only be for new customers?).
Thanks for any input/ advice.
Value of home. €170,000
Mortgage left. €90,000
Current provider. EBS
Current rate. 3.7. Variable.
Proposed new provider. BOI .
Rate ( 3 yr fixed). 3.1 (3 yr fixed)
Calculations.
2% cash back. =. €1,800
1% after 5 years. =. €900( is this on initial loan amount as I've assumed here or on remaining loan amount in 5 years.)
BOI website says I'll save approx €250 per year for 3 years = €750. (3.7% vs 3.1%)
So savings = €3,450. (1,800 + 900 + 750).
Cost of switch ??? - no idea - say. 1,450??? Any idea if that's about right ballpark?
Hence savings = 2,000.
I plan on putting loan as a split with 15k variable and 75k fixed. Get 2% cash back on 90k and then week or so later pay off the 15k variable part in full.
After 3 years, presume try another fixed rate in BOI, no idea where rates will be then. But if they go up sur the current 3.7 variable with ebs would prob go up anyway.
The main reason I'm considering switching is that BOI will take the ltv into account whereas ebs won't ( as I'm existing mortgage customer with them). That lets me get 3.1% vs 3.7% for 3 yrs anyway, and then the cash back piece too.