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How to (safely) reduce mortgage cost?

  • 19-01-2014 12:15pm
    #1
    Christ88
    Registered Users, Registered Users 2 Posts: 1 ✭


    Hello,

    I wish to purchase a property and here is the situation:

    * Owner-occupier & 1st-time buyer
    * Property value: 92k
    * Mortgage request: 55k / 10 years
    * Currently renting at 700E/month
    * Current savings: 41k (+1k/month)
    * AIB customer.

    On this basis, mortgage repayments and all bills, insurances, taxes combined would be below my current rent. So I'll still be able to keep saving 1k/month. I don't have any other project for the moment so that I wouldn't mind using these monthly savings to anticipate mortgage repayments.

    If you were me, what option would you go for:
    # Staying with AIB: "LTV Variable > 50%< =80%" (Rate 4.29%, APR 4.37%)
    # Staying with AIB: "1 Year Fixed (New)" (Rate 4.09%, APR 4.44%)
    # Going with KBC: "LTV Variable <60%" (Rate 3.85%, APR 3.92%)

    Any feedback about these 2 lenders? Which one would you trust more (& why)? I would like to keep it simple staying with only one bank but maybe the lower rates at KBC can save me a significant amount...

    Also, better off paying repayments +1k every month, or staying on the "1 year fixed (new)" at a lower rate for 1 year then repay +12k as a lump sum at the end of the fixed term?

    Any (argumented) opinions appreciated. :-) Thanks!


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