Not meaning to start an argument Brendan but this advice is contradictory to your advice in the mortgage rates best buys thread.Not sure you should switch to EBS. If they don't pass on cuts in future, you will be pretty much stuck with them.
Brendan
I think its worth caveatting this statement with the assumption the OP can switch. If they cannot switch, then it would make sense to fix as BOI are on the record stating they do not intend to be competitive with variable rates and want everyone to fix. The only concern here would be what rate you roll back onto after the fixing termI don't think you should fix for three years. Hopefully, the campaign to bring down mortgage rates will succeed.
You can also overpay by 10% on a fixed rate with BOI, so this would improve your term issue potentially and give you some breathing space to buy back the pension years in the short term
I read this in my brothers mortgage agreement about a year ago and I am 99% sure the 65 euro part did not apply then. I know he is overpaying so will check how much he is doing so byFor fixed rates the maximum monthly overpayment is 10% of the monthly mortgage repayment, or €65, whichever is greater.
I read this in my brothers mortgage agreement about a year ago and I am 99% sure the 65 euro part did not apply then. I know he is overpaying so will check how much he is doing so by
but yes, if it is capped at 65 euro then it is not as attractive as if it was 10% only. Will have to check that one out !
For fixed rates the maximum monthly overpayment is 10% of the monthly mortgage repayment, or €65, whichever is greater.
Let us know if the cap doesn't apply to him although I think it does to all BOI fixed mortgages.
Apologies @Galego I misread this last night. He is overpaying by 10%, which is more than 65 euro. I had read the statement was it was capped at 65 euro not 10% if greater.
So yes, he overpays by 10% and this cap applies.
That said, I wonder how many people really overpay by more than 10%, and if they do, then fixing is not the best option for them. They would be much better to have a variable rate or split mortgage to allow them more flexibiliy etc.
While Ebs looks more attractive, is it still worth it if I have to reduce term by five or six years?
Obviously this increases repayments. (We could afford it but i want to buy back years in my civil service pension and can't do both!).
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?