Fixed Staff Rate-Switch?

Harry99

Registered User
Messages
5
Hi All,

Looking for opinions on what you would do?

Have a staff fixed rate of 3% on the life of my Mortgage which has 18 years remaining, I would be looking to switch to a rate of 2.3% which would save approx €70 a month which i would use to over pay the mortgage(10% overpayment allowed)

There is no breakage fee but can not go back to Staff rate once off it.

Is it worthwhile? I cant see rates heading over 3% for a long time and thinking the overpayment of the difference would be more beneficial long term.
 
This is a very interesting question.

There is no downside in fixing for two years at 2.3%.

When the two years is up, if rates have moved up to 10%, you can fix indefinitely at 3%.

If you think that you might overpay your mortgage by more than 10% , can you leave that amount at the 3% rate?

The only issue is whether you should fix for 4 or 5 years at 2.6%?

I don't think that you should though. If rates rise, just fix again at 3%.


Brendan
 
When the two years is up, if rates have moved up to 10%, you can fix indefinitely at 3%.
I don't believe so - the OP says once he changes, then the fixed staff rate is no longer available. If it were he'd end up paying BIK on it (I'd be surprised if they haven't been in the past when 3% would have been preferential).

So it's a decision between 18 years fixed at 3%, or whatever is available elsewhere.
 
Hi guys,

Thanks for the replies, yes Redonion you are right, this is the issue, I can make the savings now on a lower rate and use this to over pay the mortgage but long term when/if rates go over the 3% then it will cost more but question is will i benefit enough before this happens.
 
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