, you should be able to secure a rate as low as 1.9 per cent with Bank of Ireland’s four-year green rate.
So that is a very manageable monthly increase of €132.58. However, as you are repaying the €30,000 over the 30-year term of the mortgage alongside your existing mortgage exposure, the cost of the loan in interest payment terms – known as the cost of credit – would be just under €10,888. If you cannot afford the €563.30 monthly payment, you could take the loan for a 10-year period with Avant. The monthly repayment would drop to €329.25 but as the interest rate is higher, at 5.9 per cent, and the repayment term longer, the cost of credit to you on the loan would be €9,510, which is not far short of the 30-year mortgage option.
If you were to decide to repay it within five years – by paying an additional €527 a month on your current mortgage repayments – the cost of credit would fall to a modest €1,630 or so.
IrishTimes I can’t afford to buy a home.