Hi SJ
It is wrong to compare your current deal with the KBC deal.
Step 1: work out if you should break or not.
So if you break now, you can avail of the Ulster Bank rate of 2.3% fixed for 2 years.
So should you break?
So you save 1.3% interest on €170,000 or €2,210
As you will recover the break fee of €1,500 in about 8 months, you should do so.
Step 2: Compare the Ulster Bank rate of 2.3% with the KBC deal
So KBC is a bit dearer - 0.2% or €340 a year
You will get €3,000 cash back less about €1,500 legal costs of switching.
So you will be getting €1,500 up front but it will cost you an extra €340 a year in interest.
Of course, at the end of the two year fixed, it's possible that KBC will be cheaper than Ulster Bank - no one knows, but both lenders do try to have competitive deals.
So I would say that your gain would be about €1,200.
You can decide if that is worth it or not.
Brendan