Currently with UB on a 3.6% fixed with 19 months remaining. 22 years left on the term with around €170,000 outstanding. Breakage fee in November 2018 was quoted at €1,500.
Luckily we are in a position where we can begin to overpay on the mortgage. No other debt apart from perhaps less than €1,000 on credit cards.
Looking around, KBC are offering a 1 year fixed at 2.5% (less than 50% LTV) if you open a current account with them. If I’m correct the 1.1% difference in rates equates to a €2,960 over the 19 months. Add in the €3,000 cash for switching and it’s €5,960 - €1,500 (breakage fee) = €4,460. Is that correct (of course not including legal fees) for the short term fixed rate we’re in?
Looking at the bigger picture, the mortgage would be €95 less a month and perhaps supplement that by €405 to make an even €500pm overpayment. Still take out the 22 year term for €170k.
All that into consideration could reduce the term by 10 years saving around €45,000 in interest.
Do those numbers look correct or have I gone astray anywhere?
Luckily we are in a position where we can begin to overpay on the mortgage. No other debt apart from perhaps less than €1,000 on credit cards.
Looking around, KBC are offering a 1 year fixed at 2.5% (less than 50% LTV) if you open a current account with them. If I’m correct the 1.1% difference in rates equates to a €2,960 over the 19 months. Add in the €3,000 cash for switching and it’s €5,960 - €1,500 (breakage fee) = €4,460. Is that correct (of course not including legal fees) for the short term fixed rate we’re in?
Looking at the bigger picture, the mortgage would be €95 less a month and perhaps supplement that by €405 to make an even €500pm overpayment. Still take out the 22 year term for €170k.
All that into consideration could reduce the term by 10 years saving around €45,000 in interest.
Do those numbers look correct or have I gone astray anywhere?