Hi
We are one year into a 25 year mortgage with AIB and are looking to switch unless they better their fixed rates. We are paying about €1300 a month and we can afford it but it doesn't leave much to save (with two young kids and childcare costs). I had a meeting with Ulster Bank and it looks like we should be able to switch easily enough and we can get a longer term should we want it. For example, the guy in the bank showed us a 30 year term and the prices and the 4 year fixed rate was saving us over €250 a month.
I know the longer term will lower the payback amount but I'm wondering if we took that rate and term and overpaid by the 10% allowed would it be better for lowering the principal amount quicker. It would still give us an extra €150 to save per month. In 4 years we could reassess where we are and what is available then.
Thanks!
We are one year into a 25 year mortgage with AIB and are looking to switch unless they better their fixed rates. We are paying about €1300 a month and we can afford it but it doesn't leave much to save (with two young kids and childcare costs). I had a meeting with Ulster Bank and it looks like we should be able to switch easily enough and we can get a longer term should we want it. For example, the guy in the bank showed us a 30 year term and the prices and the 4 year fixed rate was saving us over €250 a month.
I know the longer term will lower the payback amount but I'm wondering if we took that rate and term and overpaid by the 10% allowed would it be better for lowering the principal amount quicker. It would still give us an extra €150 to save per month. In 4 years we could reassess where we are and what is available then.
Thanks!