Dublin mortgage quote: comparing a 6.40% 20-year fix

[first_compass]

The lender is presenting the 20-year fix as long-term certainty, but I hesitate because the complete cost is less appealing than the quoted rate. This is for a Dublin purchase of roughly €956,800 at 6.40%, and the fees and applicable loan-to-value band have a meaningful effect.

I am not looking for a general prediction about rates. I want to compare offers over a realistic period: perhaps the full 20 years if I stay, plus earlier dates if I move. For each case I plan to include monthly payments, fees, the outstanding balance and any cost of repaying early. Portability may matter too, but only if the conditions make it usable in practice. What other figure would materially change that comparison?

 

[first_compass]

To clarify, I’m not really after a broad rate forecast. I want a sensible comparison period. Twenty years matches the fix, but it may be unrealistic if I move or refinance earlier. I also don’t want to assume refinancing will be cheap or available when building the calculation.

 

[local_roof]

APR is useful for an initial filter, but I would compare cash flows over several plausible holding periods rather than only 20 years. Include fees, monthly payments, any early-repayment cost, and the remaining balance at each endpoint. What loan amount and LTV tier are behind the quote? The €956,800 purchase price alone isn’t enough to compare the real cost.

 

[alba.wood]

Staying with the 20-year fix and planning to refinance early are both uncomfortable assumptions: one may overstate how long you remain, while the other depends on future borrowing being available. I would run both, but decide first whether the payment at 6.40% is manageable from current income.

That monthly commitment is the hardest part to undo once the loan starts. If it is comfortably affordable, compare the long-hold and early-move costs. If it is already tight, a favourable spreadsheet result over 20 years should not outweigh the immediate strain.

 

[alba.wood]

Portability also needs closer reading than a simple yes/no. Ask the lender what happens if the next property costs more or less, whether any additional borrowing is assessed separately, and whether timing gaps affect the arrangement. Those conditions could matter more than a modest fee difference if moving during the fixed period is realistic.

 

[alba.wood]

I would not choose between APR and total lifetime cost as if either one settles this. Put each lender into the same table and use the figures already raised here: upfront charges, monthly payment, balance at each possible move date, repayment cost and total cash out by that point.

Run one case for keeping the 20-year fix and another for leaving earlier, without inserting an optimistic future refinance rate. Then have the lenders confirm the loan-to-value basis and the detailed portability and early-repayment terms in writing. That should expose whether the attractive rate survives a like-for-like comparison.