Switch to KBC?

[Banban]

Hi,
I have 175K owing on a house worth approx 330K with 22 years remaining. I have the option to fix with BOI at 3.3% for 10 years. I was wondering if it would be worth the switch to KBC for 2.95% for 10 years? I would save approx 7.5K over the term. KBC contribute 3K to fees.

 

[RedOnion]

If you plan to fix for 10 years, I think you've already answered your own question. So long as there's nothing to prevent you switching, you should.

 

[lledlledlled]

If you want to overpay your mortgage by more than 10%, consider splitting your rate between fixed and variable.

 

[LDFerguson]

I would save approx 7.5K over the term.

It's hard to predict what the mortgage market will look like in 10 years' time. Maybe Bank of Ireland will have lower rates than KBC; maybe they won't. But even over the 10 years you're fixing for, you'll definitely save over €3,800 in repayments. Add in the KBC cash-back contribution and it seems like a no-brainer as long as you're happy to fix for 10 years.

 

[skrooge]

Looking at the numbers you'll save €5,345 on interest alone over the 10 years. The 3k sweetens the deal just remember you'll have solicitors fees for switching and you will need to satisfy the banks lending policies but given the details above it would seem to be the better of the two options financially

 

[Boyd]

Worth noting that KBC seem to have a terrible reputation for switching in-efficiency. I recently switched to AIB in 7 weeks flat while a friend who started process on the same day with KBC is still battling with them over paperwork, ID, valuations etc. He said they are a nightmare.
Our solicitor also said "Please say its not to KBC" when we rang him to start our switch! Also have a read of https://www.boards.ie/ttfthread/2057798459.

Haven't any experience of this myself as I've not dealt with KBC, just relaying what I have been told.

 

[Banban]

Thanks for all the suggestions, due to personal circumstances I have decided to fix for 5 years with BOI at 3% instead of switching.