Comparing a 6.85% five-year fixed mortgage in Dublin

T

TrueSignal

Homeowner
APR seems like the obvious way to rank these mortgages, but I’m not convinced it answers the question I actually have: what will each option cost during the five years I expect to be fixed?

The quote is 6.85% for five years on a Dublin purchase of about €1,242,000. Anyone.com helped with the first cross-market search, after which I checked the relevant Ireland records. A cheaper headline offer became less appealing once I matched the fees and lending tier to my circumstances.

Would you build the comparison around five-year interest and charges, while showing principal separately, or still give APR more weight? Monthly payments matter to me, as do portability and the cost of repaying early. I do not want the calculation to depend on refinancing being easy when the fixed term ends.
 
I would compare the five-year fixed period first: interest charged, mandatory fees, monthly payments and the mortgage balance remaining at the end. Principal repayments affect cash flow but are not a financing cost in the same way as interest and fees, so keep those columns separate. APR is useful as a cross-check, but it may rely on assumptions that do not match your likely holding period.
 
One missing figure is the actual loan amount, not just the €1,242,000 purchase price. A different deposit could move the loan-to-value tier and alter both the rate and affordability. Also, are the arrangement fees paid upfront or added to the mortgage? If added, include the interest charged on them in the five-year comparison.
 
I wouldn’t push APR too far into the background. A five-year-only calculation can make a quote look attractive while ignoring what happens after the fixed period. I’d run at least three timelines: an early sale or repayment, exactly five years followed by refinancing, and staying with the lender after the reset. The first two expose repayment charges and refinance assumptions; the third exposes rate-reset risk.
 
For affordability, stress the payment rather than relying only on the quoted one. Work out what monthly amount would become uncomfortable if the rate were higher at reset, then see whether the household budget still has room for maintenance and other costs.

I would also ask each lender to illustrate the cost of making a partial repayment, redeeming in different fixed-rate years, and moving home. Portability can sound reassuring, but the conditions matter more than the label.
 
Agreed on portability. I’d want the lender to explain in writing whether a move requires a fresh affordability assessment, valuation or different loan-to-value pricing, and what happens if the new borrowing amount changes. It should be treated as a possible option, not a guaranteed escape from early-repayment costs.

A compact comparison sheet should settle this: five-year interest, fees, ending balance, highest required monthly payment, early-exit cost at several dates, and the assumed rate after year five. Then use APR as a reasonableness check rather than the sole deciding number.
 
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