BIK on a mortgage

J

Joxer1

Guest
I can get a mortgage through my job at a rate of 3% fixed, but I am been told its not worth my while because mortgage rates are low and that once BIK is taken into account you dont save much.
Can anyone tell me if this is true or not and percentage wise what would the 3% rate equate to with BIK on it
 
You can get a 3% fixed rate? BIK will add about .2% to it.

Have you looked at the current interest rates?

What are the interest alternatives being offered to you?
 
Are these Revenue links of any use?

[broken link removed]
[broken link removed]
 
PM1234 said:
You can get a 3% fixed rate? BIK will add about .2% to it.
Click to expand...

After reading Clubman's link doesn't BIK add .8%?

The specified rate for calculating the BIK is 4.5%. So the effective rate is 3.8% as .8% = (4.5% - 3.0%) * 0.53

Assumed OP is a top rate tax payer.
 
If the effective rate (after BIK tax/PRSI is taken into account) is 3.8% then that is marginally above the current ECB rate so it would look attractive as long as rates don't fall below 3.8% over the fixed rate period. Normally I would not recommend that people fix unless absolutely necessary but in this case (if the effective rate is c. 3.8%) then it looks like a good deal.
 
Thanks for that,yea I can get that rate of 3% fixed for 5 years,it looks like interest rates will go up again so good to know I am on to a good deal
 
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