Hey,
I am a FTB and got sale agreed on a house at 500k. I have 100k deposit. So the loan value should be 400k.
Considering these two options.
Avant 4 yr fixed at 3.60 or PTSB 3yr fixed at 3.70 with cashback . The LTV is < 80% with 20% deposit.
With 400k mortgage PTSB pays 2% cashback which is tempting. However after 3 years I will be put back on PTSB quite high variable rate. Currently 4.50% where Avant's variable is 3.95%. I am aware that in three years things might change but based on the historical data PTSB variable rates were always on the higher end. Avant does not have much history but I am just hoping that they will keep with their current rates more attractive in comparison to the competition.
I did use /first_time_buyers/tax_relief_calculator on one of the brokers sites. And it looks that after 4 years, when switching back to variables PTSB 4.50 vs Avant 3.95. The 8k cashback difference will be offset with higher interest rates and lower repayments within 3 years. So the cashback is only attractive if I would be able to switch asap after the fixed rate contract is finished.
Should I take the risk and avail for the cashback and hope everything is in place in three years time so I can avail for a switch?
Or just stick with Avant and hope that they will remain with attractive rates in future ?
Please share your experience.
PS I have read the key post about not being able to switch mortgage in future.
I am a FTB and got sale agreed on a house at 500k. I have 100k deposit. So the loan value should be 400k.
Considering these two options.
Avant 4 yr fixed at 3.60 or PTSB 3yr fixed at 3.70 with cashback . The LTV is < 80% with 20% deposit.
With 400k mortgage PTSB pays 2% cashback which is tempting. However after 3 years I will be put back on PTSB quite high variable rate. Currently 4.50% where Avant's variable is 3.95%. I am aware that in three years things might change but based on the historical data PTSB variable rates were always on the higher end. Avant does not have much history but I am just hoping that they will keep with their current rates more attractive in comparison to the competition.
I did use /first_time_buyers/tax_relief_calculator on one of the brokers sites. And it looks that after 4 years, when switching back to variables PTSB 4.50 vs Avant 3.95. The 8k cashback difference will be offset with higher interest rates and lower repayments within 3 years. So the cashback is only attractive if I would be able to switch asap after the fixed rate contract is finished.
Should I take the risk and avail for the cashback and hope everything is in place in three years time so I can avail for a switch?
Or just stick with Avant and hope that they will remain with attractive rates in future ?
Please share your experience.
PS I have read the key post about not being able to switch mortgage in future.