We'll do the crystal ball bit first.is the likelihood that banks will lower their 2, 3 or 5yr fixed rates further within;
A. The next 1.5 to 3 months?
B. The next 5 years.
As do I - particularly with the €1,500 cashback.Personally, I like the new UB rate at 2.2% over 5 years.
Thanks but it's largely thanks to the info I've gleamed from posters such as yourself on AAM & out of necessity.You've done a lot of analysis!
We'll do the crystal ball bit first.
Thanks, I guess I don't have time to as such to wait & see if this happens. Maybe 5yrs @2.2% is a happy medium in the meantime.We'll definitely see downward movement on longer term fixed rates, rather than the short term being squeezed down below 2%. I wouldn't be surprised to see 7 year rates down at 2.5% and 10 years in the 2.8% range. All depends on how cashback plays out - we've already seen some rates launched where cashback isn't available, so lenders might be watching how that plays out.
2.7% is their published rate per ccpc.ieNow, which rate?
PTSB is a good rate at 2.7%. is that a discount on their published rates?
Interesting. That's in line with what this poster was advised here; https://www.askaboutmoney.com/threads/how-much-is-ptsbs-2-or-repayments-worth.213445/#post-1618407 (notwithstanding it was based on a 2.8% rate).The effective interest rate over 3 years is just under 2%.
The 'slowest/lowest principle repayment' con I mentioned for PTSB could have been phrased better. What I mean is that with a higher interest rate the principle component of the monthly repayment is lower than that of a product with a lower interest rate & therefore paying off of the mortgage balance is slower, resulting in a higher LTV comparatively at term end (which could negatively impact what rate is available to me...e.g. there can be different rates for LTVs above or below say 80, 60% or 50%).You mentioned slower repayment - just go for a slightly shorter term. E.g. 29 years instead of 30.
Exactly, I don't want to get stuck with PTSB after the 3 year term (e.g. if PTSB won't give me their best - new customer - rate or if I can't switch to another lender if my circumstances change by then...e.g. single income etc).Your roll of the dice is how will they treat existing customers in 3 years time?
I'm tending to agree, all factors considered, still I'd like your view on question 1 (re best overall approach/logic) if you have time to ensure I'm taking the right approach.Personally, I like the new UB rate at 2.2% over 5 years.
Not yet but I'm eager to learnDo you know how to calculate an effective interest rate for each one? It might make them easier to compare.
Thanks Sarenco! Yes I factored in the UB cashback into my calculations/comparisons.As do I - particularly with the €1,500 cashback.
Sorry, yes. I was looking only at 1 LTV band.2.7% is their published rate per ccpc.ie
Yeah i factored that in too. Though the thread on the benefits of PTSB's own overpayment option was interesting (even if i didn't grasp it fully)Don't forget the potential overpayment facilities available on the fixed rate with UB & KBC. Useful features if you feel you pverpay.
Thanks! That helps. While factoring in the cashback does lower the monthly repayments (if used for that purpose of course) & therefore the effective rate, it doesn't change the fact that more interest is payable over the fixed term & that less of the principal gets payed off. As such the effective rate doesn't tell the full story per se.Sorry, yes. I was looking only at 1 LTV band.
Apologies, the next bit is without a calculator, so hopefully my rough numbers are correct.
To work out effective interest rate, take total interest charge for the fixed period, less cash back. That's your cost for fixed period.
Total cost / balance / years will give you very close to EIR. In the PTSB example, it's just under 2% for 3 years.
UB is just under 2.2% for 5 years.
It's a clearer way to compare them I think.
You're then choosing between 2% for 3 years, or 2.2% for 5.
I have & I agree to a point but it's less of a deciding factor for me.Have you used either of the banks before for current accounts / online platform? I found ptsb's online offering to be very frustrating.
Until after the electionFixed-rate mortgage price war heats up
Last week, Ulster Bank introduced a five-year fixed mortgage rate of 2.2% which is the lowest fixed rate available over that time period in Ireland.amp.irishexaminer.com
Interesting reading. Touches on a lot of what we covered in this thread.
Until after the Election
The Government have Increased there fixed Rates not a peep on hear,
True. A little undecided between 2yrs @2.3% or 5yrs @2.2% tbhUB also have a 2 year 2.3% fixed. Mitigates the cons you highlighted with 5 year.
Absolutely agree. Not even brokers do this for clients it seems.KBC have no online mortgage tool, but their current account & credit card ones are quite good. UB has a nice mortgage one. There's something nice about watching your balance reduce in real time! I think everyone with a mortgage should have access to a detailed mortgage calculation personal to them provided by their bank, showing their interest rate and principal separately so they can see the controllable cost of interest. It's actually quite surprising how few people understand this. Maybe I'm just a nerd but to understand how you can reduce one of your big bills is a very basic life skill!
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