I'm taking out 35k over 5 years!
Fixed rates rarely benefit the consumer.
I agree with all who have suggested to go with the variable rate loan. It has been my own personal experience that the banks always won on the fixed rate versus the variable rate.
Also, on a related issue, our bank is suggesting we take up the max available mortgage and use the available balance of our savings for upgrading the property we have in mind, whereas our own preference is to put more of our savings against the mortgage and perhaps a short term credit union load for home improvements - any views ?
I would imagine that the credit union interest rate would be considerably higher than the mortgage so without seeing the figures my initial reaction would be to borrow for home improvements on the mortgage. If comparing the two, factor in the cost of life cover on the mortgage.
Thanks for advice everyone ! Just to clarify our position - unfinished house priced at €100k, estimate a further €15k to finish off.
Our proposal is to deposit €20k, draw down mortgage for €80k and fund finish off costs from a mix of remaining savings and short term home improvement loan- say €10k. If we add the finishing off cost to our mortgage, will this not work out more expensive in the long run though it might make for lower monthly repayment thus helping our cash flow situation ?
Thanks again for the advice
If your bank is suggesting that you borrow the home improvement money on the mortgage, tell them that you want the extra €10,000 over a short term but at mortgage rates. That way you get the best of both worlds.
It has been my own personal experience that the banks always won on the fixed rate versus the variable rate.
Just curious,
Which bank is giving you a mortgage of only €35K over 5 years ?
Is this a mortgage to buy or is it a top up mortgage for home improvements or whatever ?
Thanks.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?