End of fixed term.

C

Cathbarr

Registered User
Messages
81
Hi there,

Was just wondering what we should consider in regards to the following

We are exiting our fixed term mortgage this time next year. We are currently paying 4.85% interest and will revert to ebs variable rate of around 3.5%. By then our mortgage will be around 110000. I have been told by my parents that they will gift us around 20000 to pay down the mortgage further.

As we will have a low mortgage compared to our house value (currently around 400k) should we wait to look for a switcher mortgage until all this has happened? Or should I start looking for one toward the end of the year?
 
Why not look now?

Ask the EBS what the break fee will be.

You could fix now at 2.4%. So you could save roughly 2.5% or €2,500 if you switched now. KBC will charge a slightly higher rate but will give you €3,000 to switch.

Brendan
 
I got a break fee quote from them last year which was 10k. It was basically all the interest we owed from last year and this year so it wouldn't have been worth it. Will try them again just to see what they say.
 
That's it red onion! Fixed for 10yrs. Took a gamble it didn't pay off.

Look forward to hearing the calcs after your coffee.
 
Someone saw me drinking coffee and nabbed me for something else!

I think it's worthwhile breaking.

Your break fee now is approx 3,900 (you'd need to request exact number from EBS).

You are paying 4.85%

Switch to KBC, with current account, and take 5 year fixed at 2.65%

They'll pay you 3k for switching, and you'll save 2.5k in interest (you'd actually save 3k if you reduce your balance by 20k at the same time).

Legal fees will be less than 1500, so you're well covered for break fee.
 

Careful how you get that 20k gift or you will be liable for tax.
If you plan it right, you can get 12k per year tax free I.e. 3k gift to you from each parent plus 3k gift to your partner from each of your parents. Pay the 12k off, then do something similar the next year.
 
So I rang ebs earlier and my breakage fee as of today is 4200. So will have a think about it and see what we decide in a few weeks.

I'm just hoping that rates don't rise in the meantime after reading that article in the newspaper the other day.

Thanks for the info lledlledlled. Suppose it'll be inheritance but hubby works in finance so he'll be able to advise on that.
 
You must log in or register to reply here.
Menu
Log in
Register