Taking one's eye off the ball; a salutary (mortgage) lesson.

[Dinarius]

We're with AIB at 3.15%.

We have 66 payments (5.5 years) to run on an outstanding balance of €112000.

We're currently paying €1770.00 per month.

When our annual statement comes through, it usually goes in the filing cabinet.

I've only just noticed on this year's statement that AIB offer a Loan to Value rate of 2.75%. The difference in repayments would pay a couple of bills per month.

Previous years' statements probably had similar LTV offers. I didn't check. Silly, I know.

I've just phoned them and asked for the repayment at the LTV 2.75% rate - they wouldn't give it over the phone. So, they're sending me the particulars. They will also require a new valuation of the property - cost €150.00. Without even coming to the house, they could work out that it's worth €500k+.

I can hear Brendan Burgess saying, "Told you so!".

Anyway, might save a few bob in the remaining five years. Might even lob in a few grand lump sum to make the remaining repayments even smaller.

My thought for the day.

D.

 

[Zenith63]

I've just phoned them and asked for the repayment at the LTV 2.75% rate - they wouldn't give it over the phone.

Looks like your new repayment would be about €1750, from using https://www.drcalculator.com/mortgage/.

 

[Dinarius]

Looks like your new repayment would be about €1750, from using https://www.drcalculator.com/mortgage/.

Thanks for that. Very useful app. Hadn't come across it before.

Am I right in thinking that app only allows rounded years for repayment and not months also?

Using the app, if I was to pay off €12k lump sum and pay balance of €100k over 5 years, I make that €1785 per month.

Correct?

Thanks again.

D.

 

[Brendan Burgess]

Previous years' statements probably had similar LTV offers. I didn't check. Silly, I know.

Told you so!

 

[RedOnion]

Am I right in thinking that app only allows rounded years for repayment and not months also?

Settings> Loan Settings > Term
Change from years to months.

 

[Dinarius]

Got my letter of alternative rates offers from AIB.

We are currently paying €1770 per month at 3.15%.

We wouldn't qualify for their "Green 5 Year Fixed" at 2.45%.

The best rates are 3 or 5 year fixed at 2.55%. The total repayment would be €1740 per month. So, we gain €30.

We have just over five years to go.

They seem to be better than [broken link removed] fixed rates. (our LTV would be under 20%)

And given the length of time remaining, is it worth all the hassle and legal costs of switching?

D.

 

[RedOnion]

They seem to be better than [broken link removed] fixed rates. (our LTV would be under 20%)

No, KBC announced rate cut last week, so their rates are lower than that link.

2.25% for 3 years.

is it worth all the hassle and legal costs of switching

KBC will give 3,000 cashback, so you should have 1500 to put in your pocket after all expenses.

 

[Dinarius]

Many thanks!

D.