Brendan, many thanks for your advice.I am sure that the broker is telling you the truth.
Avant must stress test the application and they don't want a customer who aims too high, and who goes into arrears.
So sign up for a 15 year mortgage.
Fix the rate for 7 years as that is the lowest rate.
Then you can overpay by 10% a year without penalty.
So, if you borrow €157k, you will be able to pay off €15k extra in the first year without penalty. Specify that you want the term and not the repayment reduced when you make the overpayment.
The following year, you will be able to pay of about €13k extra.
And if it suits you not to overpay, then you can take a break from the overpayments. (If you sign up for 7 years at the start, and you run into problems, then you will go into arrears.)
If you want to pay more than €13k, it is very likely that there will be no break fee for people borrowing at today's rates.
If there is a break fee, it is capped at 2% of the amount repaid.
Brendan
If it was a 7year mortgage the repayments would be €1,999.84 per month , including interest . That's an increase of €580 per month on current payments which we can afford as we will have one child finishing in childcare in July releasing approximately an additional 800euro per month also.
( they are probably getting some fee from Avant , probably based on the longer the loan and higher the value?)
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