Avant versus KBC - which is better for my circumstances

jim

Registered User
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828
Hi,

I am deliberating whether to switch to Avant or to KBC.

Mortg is approx 165k
House value is 340k
Term left is 28 yrs
Currently with AIB
Rate is 2.95%

Avant is 1.95% which i think is best rate on market. No cashback. From speaking to a broker i do qualify for Avant given their strict criteria.
KBC is 2.25% fixed 3 yrs (have current acc with KBC). They give cashback of 3k which is attractive given the solic fee involved.

Please let me know if other info required but im hoping for help in making right decision. Im leaning to KBC. Is there another bank i should consider?
 
1.95 % is a great rate, and much better value over the medium to long term, than a one off caskback amount. The 3k is certainly attractive, but only really makes sense, if you plan on moving again in the shorterm.
 
1.95 % is a great rate, and much better value over the medium to long term, than a one off caskback amount. The 3k is certainly attractive, but only really makes sense, if you plan on moving again in the shorterm.

He could actually move to KBC and have 7 years + worth of cash to pay the higher rate at 2.25%.

He could also move to KBC get three grand and move on to Avant soon after and do a deal with a solicitor to do the two switches.
 
Thanks all, so based on the above in the short term kbc is a better deal i.e with avant i save a few hundred a yr on interest but kbc are giving me 3k up front.

The longer i stay with kbc the more that 3k up front gets eroded by the higher annual interest amount.

So if i switch after 1 year, even allowing for solicitor fees, id be better off with kbc. The hassal though has to be factored in.

I might look into doing multiple switches, which i have done in the past, and try and end up on avant.
 
The hassal though has to be factored in
There is also a risk that your circumstances change such that you cannot switch in the future.

When you take legal costs into account, the benefit of switching to KBC for the cashback and again to Avant would be minimal.

If I was you, I would just switch to Avant and be done with it.
 
Thanks Sarenco. I now tend to agree with you.

For kbc to be the better option i would need to switch in approx 3 yrs which, when you factor in solic fees, kind of negates the benefit of choosing kbc.

Seems like better option is to go avant at 1.95 for maybe 7 yrs and forget about it.
 
Now wondering is it worth my while switching at all.

Ill save €35 per month by switching and itll cost me possibly €1,000 for solicitor plus valuation.

So it would take nearly 2.5 yrs to recoup that outlay in monthly savings.

Its hard to know....
 
A 1% saving per year on your mortgage would be 1650 in year one, that would cover fees. It would be a bit less each year for the next 6 years , if you fixed for 7 years, a minimum of 6,000 saved interest, I would switch.
 
My repayment apparently gonfrom 570 to about 530 per month unless there is a miscalculation (130k 2.9%->1.95%)
So thats 40x12 is saving of 500 per yr.

How did you calc 1,650?
 
Sorry Arthur McB, I was commenting on the original post, and didn't notice yours was different. If your mortgage is 130k then a 0.95% drop in interest rate is a €1,235 saving in year 1, a bit less in year 2 ( the mortgage sum outstanding then will be less than 130k ) , then a bit less in year 3 and so on. I am not an expert but your monthly repayment with the new rate is probably paying off more capital and less interest.
In my opinion a 0.95% saving in interest rate is significant, and the 1.95% rate fixed for 7 years is pretty good.
 
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