Want to switch but also want to trade up within 12m

[tracer900]

Hello all,

First post here looking for some advice.

Purchased a house in Lucan in 2010, have approx 205k left over 25 years. Current value is in the region of 315k.

I am coming to the end of a 2 year 3% fixed term (EBS) and as a result of wanting to trade up to a bigger house in the near future, do not want to fix again.

I have spoken to UB about new mortgage for the trade up and we've been offered a loan amount up to 395k based on our current incomes & outgoings. This would be taking their 5 year 2.2% fixed rate.

The variable rate with EBS is 3.7% which would increase our monthly repayments in the region of €100 per month.

I see AIB are offering a 2.95% variable rate that includes €2000 cash back. After associated costs there would be something leftover and a cheaper monthly payment than EBS on their variable rate.

The trading up process is an unknown for us having not done it before, similarly for switching.

Is there any better options available considering we would like to sell our current & buy a bigger PPR within the next 6-12 months?

Thanks in advance

 

[Boyd]

You say 6-12 months, if you were closer to 12 months could you get a 1 year fixed with EBS?

You can break out of a fixed rate also (possibly with a break fee), if it were closer to the 6 months then.

KBC offer 3k cash back but they're awful to deal with people have reported. You'd have around 500 extra after the aib switch, depends how much you like paperwork!

 

[tracer900]

EBS can do a fixed rate for 1 year at 2.9%.

I think I'll avoid KBC for now. I intend to end up with UB on the 5 year fixed at 2.2% for buying the bigger property.

I'm gathering up all the paperwork for that application so a switch for a couple of months won't take a huge amount of resources.

I've found my local EBS less than ideal in the communications department too which is driving the desire for the short term switch (as opposed to just the free money and lower rate!)

Thanks for your feedback