don't want to loose over €50,000 as interest amount
Unfortunately, no matter what you do it's going to cost you interest over the term. So lets look at a few options.
Borrowing 170k for a house worth 220k, is an LTV of just under 80%, so you can get decent rates.
I assume you have other money set aside to cover stamp duty & your legal fees?
All below calculations assume you're not making any extra repayments (which you can do, and will reduce your total interest cost - before calculating if a break fee is applicable BoI will allow you to increase your monthly repayment by 10%. UB will let you pay off 10% of the balance early each year. KBC allow you to overpay by 10% of the initial balance over the fixed term).
I've gone with the best fixed rates available to try help. I hope there isn't too much here to confuse you. Just say if I've over complicated it, and I'll try answer any specific questions.
The big question is - what rates will be available when your initial fixed period ends, so I've included scenarios to try illustrate the impact for you.
Unfortunately the KBC 10 year rate is increasing to 3.2% at the start of April, but it still represents 'good value' compared to the other rates. What your looking at is a trade off of risk of rates increasing a lot over time, vs a higher initial cost. On 17 year mortgage your balance reduces to just under half in 10 years, so even if rates have gone up a lot, it's on a smaller balance.
1. BoI.
Fixed rate at 3% for 5 years.
Your initial repayment will be 1,065 per month for 5 years. BoI will give you 2% cash back at the start (3,400) and 1% after 5 years (1,700).
Your remaining balance after 5 years will be 128,700
So in
5 years you will go onto another rate. Scenarios (approximate total interest over 17 years in brackets):
A. Rate 3%. Repayment remains at 1,065 (47,200)
B. Rate 5%. Repayment will be 1,189 (65,200)
C. Rate 7%. Repayment will be 1,322 (84,400)
2. KBC.
Fixed rate at 3.2% for 10 years (Rate assumes you open a current account with them)
Your initial repayment will be 1,082 per month for 10 years.
Your remaining balance after 10 years will be 81,300
So in
10 years you will go onto another rate. Scenarios:
A. Rate 3.2%. Repayment remains at 1,082 (50,630)
B. Rate 5%. Repayment will be 1,149 (56,300)
C. Rate 7%. Repayment will be 1,226 (62,805)
3. Ulster Bank.
Fixed rate at 2.6% for 4 years (Rate assumes you open a current account with them)
Your initial repayment will be 1,031 per month for 4 years. Ulster Bank will give you 1,500 cash back at the start.
Your remaining balance after 4 years will be 136,500
So in
4 years you will go onto another rate. Scenarios:
A. Rate 2.6%. Repayment remains at 1,031 (40,500)
B. Rate 5%. Repayment will be 1,191 (65,400)
C. Rate 7%. Repayment will be 1,335
(87,760)