FirstActive current account mortgage

[Joe Nonety]

FirstActive's current account mortgage is 3.29% which is guaranteed to be 1.29% higher than the ECB.
The way it works is that your pay check goes into you mortgage current account and instead of just your standard monthly mortgage payment, the extra money you'll have in there after payday earns interest against your mortgage.
I'm wondering if a 3.29% current account mortgage would work out cheaper in the long run against the standard 3.1% mortgage?

 

[jhegarty]

FirstActive's current account mortgage is 3.29% which is guaranteed to be 1.29% higher than the ECB.
The way it works is that your pay check goes into you mortgage current account and instead of just your standard monthly mortgage payment, the extra money you'll have in there after payday earns interest against your mortgage.
I'm wondering if a 3.29% current account mortgage would work out cheaper in the long run against the standard 3.1% mortgage?

depends how much you have in the account... their website lets you work out the saving...

 

[DOBBER22]

[broken link removed]

 

[Joe Nonety]

The problem is that the calculator assumes that the figure you give for monthly expenditure is spent evenly over the month i.e. if you earn €3000 a month and spend €3000 a month, it assumes that you spend €100 a day for each day of the month.