10y fixed + 65€ per month from BOI the best deal of all?

M

Monfreid

Registered User
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27
Hi,
I’m just crunching numbers here and it looks like the 10y fixed rate (3.3%) + 65 eur extra per month, based on my calculations, is the best deal and have the security of the 10y fixed rate.

Balance: 173000
Remaining years: 21

So in 10y, @ 3.3% + 65€ extra per month
the balance will be 95000

The achieve the same balance in 10y without extra payment, you would need an interest rate of 1.3%

Am I correct or is this too good to be true?

Thank you
 
Monfreid said:
Am I correct or is this too good to be true?
Click to expand...
Using the same logic, paying 5% Interest, and and extra 200 per month would be even better?

KBC rates are slightly better, and you can overpay by 10% of the initial balance during the fixed period without penalty.
 
Hello,

thanks for your answer.

My mortgage is with Boi and I was posting here to verify that my calculations regarding the balance after 10y with 65€ extra payment were correct as I was unsure about it. I really thought that a 10y fixed rate is the most expensive mortgage but that extra payment makes all the difference. Also, it could cost a lot of money if you want to break it so you need to be sure before going there.

regarding the logic, I get your point but I was using real figures (3.3%). 65€ extra is a small enough number that you can budget for. 200€ extra per month is not realistic/affordable for most people I think.

I’m thinking of switching to a 10y mortgage for a while now and a lot more since the last few weeks.

So I have few options there. Aib, Boi, KBC and UB.

I have already made a big enough lump sum payment this year so I’m not considering throwing more lump sum in the next 10y, just those 65€ extra per month as I have other projects in mind.

I didn’t have a good experience with Ulster Bank when I applied for my mortgage 4 years ago so I won’t consider them to switch.

I would save 1000€ by switching to KBC (3.05% for new customer) over 10y with the same extra payment so not a huge difference there . something to consider only if I was going to make lump sum payment along the way or at least have the option.

Finally. Aib does not allow extra payment unless I choose to get a split rate so not exactly the same scenario.

So now, it’s between boi and kbc . Switching to kbc to save 1000€ over 10 years and have the option to pay more along the way. not a deal breaker either.

thanks again.
 
Last edited:
You'll be paying approx 950 per month?
BOI allow up to 10% of the normal repayment as an overpayment, before checking if there's a break fee due. So you could increase by 95 per month.

What I've seen elsewhere is people set up a regular overpayment before going on the fixed rate, and BOI appear to allow that overpayment to continue.

Monfreid said:
I was posting here to verify that my calculations regarding the balance after 10y with 65€ extra payment were correct as I was unsure about it.
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It's very close to what I've calculated. C. 96k
 
I called BOI 10 days ago to request a quote for a new rate. I received the letter this week.
My current payment is 961€. (@ 3.45%), if I switch to a 10y fixed, the payment will be 948€.
On the day I called then, the breaking fee was 0€ . They said that overpayment was up to 10% or 65€, whatever is the greater.
I could switch to a variable rate, setup overpayment greater than 65€ and then switch to a 10y fixed rate.

thanks
 
RedOnion said:
The greater is the key part here. So you could overpay by 94.80 per month.
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The limit with BOI is €65 over payment/month. In the past I’d let the fixed rate expire and agree a highest repayment rate and then fix the rate again but with a higher payment other than this the limit is €65/month on a FR
 
TheBig40 said:
The limit with BOI is €65 over payment/month. In the past I’d let the fixed rate expire and agree a highest repayment rate and then fix the rate again but with a higher payment other than this the limit is €65/month on a FR
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No, it's not.
It's the greater of 65, or 10% of the monthly repayment amount.
It's written in their terms and conditions.
 
So, finally after months of thinking about what to do (my 5 y fixed rate was ending next year), I've made the jump:

I paid off a lump sum ealier this year and since then, I was thinking of moving to a 5 years or 10 years fixed rate.

The breaking fees were 0 eur so this is what I've done:

My payment was 961 eur (@3.45%)
10y fixed rate payment is 948 eur (@3.3%)
I added 80 eur to the payment (within the 10% so no penalty) and it's the equivalent of a full payment extra against the principal per year (80*12=960 eur) so new payment is 948+80=1028 eur

On top of that, I switched to a fortnightly payment so now I make 26 payments of 1028/2=514 eur so having done that I als make 1 more monthly payment.

In 10y time, the remaining balance on the mortgage wlll be around 83K (from 175K now)

so, to me, I think it's a good deal, the extra security of the 10y fixed rate was also really important to me, the extra payments more than compensate the higher interest rate.
 
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