That's a very good point.For example a 4 year fixed term at 3.1% with 2% cash back up front works out at almost exactly the same cost as 2.6% fixed with 1500 cash back (assuming a 300k loan).
Sometimes I wonder if banks are doing themselves a disservice by coming up with all these different cash back features. If they just quoted a 'clean' rate they'd appear cheaper.That's a very good point.
When you allow for the additional 1% cash-back at the end of year 5, you could argue that BOI still has the more attractive fixed rate product for mortgages of €300k+, with an LTV up to 80%.
For example a 4 year fixed term at 3.1% with 2% cash back up front works out at almost exactly the same cost as 2.6% fixed with 1500 cash back
That is just too risky. You probably won't move. You might not be able to move.
Who knows who will be offering the best deal in four years' time? I would just concentrate on whatever is the best deal that is available today.
I really don't see what the "fair" treatment of customers has to do with choosing between fixed rate mortgage products.
Eh, no, there is no obligation to switch provider at the end of the fixed rate period.
If you are with Bank of Ireland, you will have to switch mortgage providers if you want a variable rate.
Most people like to have a choice of fixed or variable.
Brendan
If you are with Bank of Ireland, you will have to switch mortgage providers if you want a variable rate.
Says who? That's just your subjective opinion.That is not in the interests of consumers.
Why? All BOI customers have better options.Many BoI customers are paying 4.5%.
This is what you are missing in your legal and theoretical approach.
There is nothing theoretical about it - any BOI borrower paying 4.5% could substantially reduce their rate by switching to another provider or by fixing with BOI.
My mortgage is with AIB but I didn't realise how uncompetitive they have become.
Can you not see that, in practice, most people simply do not switch lenders?
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