Which mortgage to choose?

S

Shane1883

Registered User
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€335k loan with EBS.

2.1% 4 years: Cost after 4 years €60,080.64, €15k per year.

2.75% 3 years 2% cashback: Cost after 3 years €49,016.52 - €6700 -> €14.1k per year

2.75% 5 years 2% cashback + 1% after 5 years: Cost after 5 years €81,694.2 - €10,050 -> €14,328.8 per year

Then switch mortgage at the end of each term. 3 years seems cheapest with the cashback, anything else to think about?
5 Years locking seems nice with rates increasing too. The first one seems nicest just from a monthly pay perspective.
 
Looking at a similar scenario myself.

With interest rates seemingly on the rise, I was also looking at the 3-year fix but inclined to lean towards a 5-year fix, with a view to possibly breaking out of it in the shorter term.
If interest rates rise in the next 6-12 months, there shouldn't be much (if any) of a break fee and there could still be the option to switch and re-fix at a rate lower than 2.75% with a more competitive lender, having banked 2% cashback from EBS at that stage.

If interest rates shoot up, such that refixing with another lender isn't an option, being locked in at 2.75% for five years gives some certainty over the medium term.
 
Consider that after each term you'll possibly have to switch mortgage provider, costing up to €1500 in fees. Longer term = less frequency of paying those fees.

All options being equal at the end of the fixed terms, the 5 year with 3% cash back seems the best deal.
What's the difference between 2.1% and 2.75% in monthly payments? €120 a month? The 10k cash back is about €160 a month. Factor that into your "monthly payments" and it's cheaper than the 3 year 2.1%.

Consider that LTV you would be after 3 or 5 years too. That'll affect what rates you could remortgage at.
 
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