Buy at 6.15% or wait and risk more competition? €1,260,000 purchase

[BrightStone]

I’ve checked that I can carry the payments on a €1,260,000 purchase at 6.15%. What remains unclear is whether proceeding now is sensible once the less obvious loan costs and exit constraints are included.

Waiting might produce a cheaper rate, but it could also mean facing more buyer competition. I’d prefer to compare those consequences without relying on a forecast. Which scenarios should I run for a rate reset, a sale and a possible refinance? Arrangement charges, early-repayment costs and portability could each change the answer, especially if the property value or my holding period differs from the optimistic case.

 

[quinn.voss]

I’d test the purchase without assuming any refinance at all. Use the current rate for the relevant comparison period, then add arrangement fees and see whether the monthly cost still leaves a comfortable reserve. After that, model a higher reset rate rather than a lower one.

Also compare several loan-to-value scenarios. A price decline could affect your refinancing options even if the payment remains affordable. Falling rates do not automatically mean prices rise enough to offset the cost of waiting.

 

[liv.hope]

I agree on excluding a hoped-for refinance, but affordability alone is not enough. How long might you keep the property? If the likely holding period is short, early-repayment costs, selling costs and portability may matter more than a modest rate change.

I’d request the full loan terms, calculate the break-even point for waiting after fees, and run three cases: no refinance, refinancing later with unchanged value, and refinancing after a lower valuation. That should expose which assumption is actually driving the decision.