Mortgage - low fee for breaking fixed rate

Robert2014

Anybody getting to break out a fixed rate free with KBC? We have 18 months left in a 5 year fixed and were offered a break fee of 1100 euros.

Del007

https://www.boards.ie/discussion/comment/118549687#Comment_118549687

KBC quote me zero to break, I've 12 months left on a fixed. Call them again next week

Bigmac1euro

For anyone wondering.

You can’t overpay with Avant every month like you can with UB you can only make 2 overpayments a year. So whatever you plan on overpaying best keeping it aside and overpaying in 2 lumps in June and December maybe. Confirmed this with broker.

downtheroad

In a 5 year fixed with PTSB til mid 2023. Called them earlier this week asking for the break fee. €953.

Also asked them for any better rates, got offered 3.1%, instead of current 3.15% :D

Can switch to Avant 1.95% and take 6 years off the mortgage or reduce monthly payments by roughly €180.

Between Avant and Revolut the Irish banks should be very worried. Or maybe decide to up their game.

Bobeagleburger

The rise in inflation might spark an interest rate rise this year.

mcburns07

Took our second time buyer mortgage with EBS in Nov '20 to get the 2% cashback offer, interest rate 2.9% fixed for 2 years.

In the process of switching to AIB now because we can get 2.15% for 5 years fixed.

Zero break fee and saving 90 euro a month.

AIB 2k is more than covering legal fees too.

It pays to switch.

masterboy123

https://www.boards.ie/discussion/comment/118578457#Comment_118578457

I am with PTSB till 2024 and requested a break fee on their existing mortgage helpline. But I was told to visit local branch in person to get the break fee and fobbed off.

Could you please share the PTSB phone number?

downtheroad

https://www.boards.ie/discussion/comment/118578680#Comment_118578680

+353 1 2124101 went through the options at this number for general mortgage queries. The guy who answered was helpful, is posting me out a break fee quote and also mortgage holiday application. No point paying them any more, save the repayments for thr break fee and solicitor.

Kerry25x

Is it a terrible idea to switch to KBC now? I'm tempted by the 3k switcher offer and their 3 year 2.25% fixed rate, I'm currently on a 2.95% variable rate with AIB so they're a good bit cheaper. I'd be planning to move to AVANT in 3 years when the fixed rate ends. Last time I switched 3 years ago my solicitor charged €900, maybe that's gone up like everything else though.

cruizer101

It does seem like a strange idea with them going but to be fair the 3k cashback is a great offer, I wonder are they trying to get soem extra well performing mortgages on their books before selling of the loan book.

Looks like you can then just move again if you want, I see nothing in the terms about staying with them, although probably bit late to get this and Avant offer.

I tempted now by it myself now you have brought it to my attention.

TP_CM

https://www.boards.ie/discussion/comment/118578494#Comment_118578494

It's a good call-out. I was looking at switching to PTSB's variable rate but I might go 2 year fixed instead. I think the fixed rate is better than the variable and any over-payments beyond the 10% allowable limit can just wait until after the 2 years are up.

masterboy123

https://www.boards.ie/discussion/comment/118578891#Comment_118578891

Thanks for the number. I will ring them on Monday and request for break fee.

celt262

When switching do you need to have 20% of remaining amount

As in if there is 100k on mortgage you can only get 80k and must pay 20k to current provider?

JTMan

https://www.boards.ie/discussion/comment/118579655#Comment_118579655

Have you done your interest maths? Depending on the amount, it might be better going for the lower rate (1.95%) than getting the cashback.

theminstrel

No, you don't need 20%.

Your new mortgage will match the old one as you pay off the old one with the new.

downtheroad

https://www.boards.ie/discussion/comment/118582765#Comment_118582765

Got the break fee quote in the post today (valid for 10 days which is fairly useless) so don't let them fob you off on the phone on Monday

masterboy123

https://www.boards.ie/discussion/comment/118583148#Comment_118583148

Thanks for the heads up! 👍🏼

Tipsy McSwagger

https://www.boards.ie/discussion/comment/118582765#Comment_118582765

I called them and was told no break free which was confirmed in a letter. I’m just over 2 years into a 5 year fixed at 3%. They offered me 2.95% which is a savings of €3.50 a month, pathetic.

masterboy123

https://www.boards.ie/discussion/comment/118585979#Comment_118585979

Great to hear people are getting zero break fee. I am on 5 year fixed at 2.95% and looking to switch.

Bigmac1euro

Thanks for all the useful tips folks.

Current lender offered me free break even with the 4 years left on fixed. Then they offered me a 2.2 rate from a 2.75 for 5 years.

was considering going with Avants 2.15 rate for 5 years but the difference is minimal and couldn’t be arsed with the hassle of switching. Mad how a simple phone call has chopped about 4 years of mortgage repayments off the end of my loan… hopefully 😀

A Law

Who's the lender?

spuddy

https://www.boards.ie/discussion/comment/118553585#Comment_118553585

Many banks limit transfers to 5k per transaction. Say you wanted to clear 20k off your mortgage with Avant, 10k in June and 10k in Dec. If you had to make two 5k transfers in June, would that mean you'd have reached your annual limit already?

Sunrise_Sunset

I'm with PTSB. Part of my mortgage is fixed. They offered me no break fee to reduce the interest rate, but had to lock in for 5 years. Only saving about 5 euros a month, but it's a small enough loan. I will be aiming to clear it by the end of the 5 year fixed rate. It was done over the phone, followed by a letter, the same as the poster above. Local branch were not involved at all.

The remainder of my mortgage is a tracker rate +1%. A few financial advisors are predicting that interest rates will increase by around Q1 of next year. For example, saying that up until a couple of years ago they would have advised clients to only go for a short fixed rate such as 2 years, whereas now they'd recommend 7-10 years if possible.

Bigmac1euro

https://www.boards.ie/discussion/comment/118589932#Comment_118589932

From what I gathered from the broker yes this is correct.

if you go into a branch they will initiate a transfer for any amount though. I transferred 30+k not too long ago which caused a slight fuss but the manager just had to authorise it and all well and good.

if I was making extremely large overpayments I’d do it all in the one transfer tbh.

razor12345

Quick (potentially silly) question - is there any unusual catch or drawbacks with switching to the likes of Avant? What happens if you fall into arrears in the future, would they be as accommodating as PTSB, KBC etc?

I have been told my break fee is zero, what are the additional costs with switching - BER cert, Sol, etc

Cheers

Just did it with EBS, in year 3 of a 5 year fixed term. Cost to break was zero.

SteelyDanJalapeno

2nd year of a fixed with ptsb at 2.95%, just called the above number and they said no break fee for us, and they wouldn't go below 2.95.

Looks like we're switching, can anyone give me a quick guide of what to do next?

masterboy123

https://www.boards.ie/discussion/comment/118609497#Comment_118609497

I am in same situation.

I have applied for AIB with cashback. Get approval from another bank now, that's the first step.

JTMan

https://www.boards.ie/discussion/comment/118606105#Comment_118606105

The costs are legal fees plus outlays plus valuation costs. This can easily cost around 1,500 EUR in total but Avant currently give you 1,500 EUR cashback. Shop around for the legal costs by getting quotes from a few solicitors.

All mortgage lenders need to abide by the strict code of conduct on arrears.

Danzy

What about over paying, can put 20% lump payment to a KBC mortgage, 3 year fixed.

Are they open to it?

Anyone break terms in that regard.