Mortgage - low fee for breaking fixed rate

Diemos

https://www.boards.ie/discussion/comment/109851734#Comment_109851734

We moved from Haven to KBC and worked out almost 2k up.

AS an FYI KBC just allowed us to break our fixed term for free and we about to re-fix for another 5 years at a reduced amount.

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118900650#Comment_118900650

Thank you. I appreciate the response, as I felt this could be a barrier. Have my AIP with Avant, and it's for 15 years, which is 5 years less than I currently have left. Just waiting on a broker to get in touch.

razor12345

What rate were you offered for 15 years?

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118905975#Comment_118905975

The rate isn't in the AIP. I think the longest fixed rate is 10 years for 2.1%, or 7 years for 1.95%. Also doesn't say what the monthly repayment will be. Will see what the broker has to say.

Bigserious1

If I were you I would consider a longer term too just for caution.

You can always clear it down quicker. 10% overpayment of the mortgage balance per annum would probably be equivalent if you only have 10-15yrs left.

Just in case an emergency came up, loss of employment, etc.

mp3ireland2

I have a fixed rate with EBS, has anybody broken this? I've 2 years 10 months left on 3 year term, but they've now got a green mortgage rate which is 2.1% Vs 2.9% I'm currently on. Hoping it's possible when staying with same bank without much hassle and that the fees would be covered by the rate change

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118907888#Comment_118907888

Yes, I will still consider a 20 year option. I have made some overpayments with PTSB and reduced the monthly repayments rather than the term, while still then overpaying the difference plus some. I believe I got that tip on another thread here actually. So if my mortgage balance is at 240k now, I can overpay up to 24k this year? And then next year if the mortgage balance is 200k, I can overpay by up to 20k that year? Is that how it works? Would you know if the overpayments are applied to the principal straight away? With PTSB on the fixed portion of the loan, if I overpay, it sits as credit on the loan until the fixed term is up and it is then applied. With the tracker portion of the loan, it can be applied to the loan at any time by completing a quick form and sending it to their HQ.

https://www.boards.ie/discussion/comment/118908043#Comment_118908043

Yes, I did it twice in the past few weeks. No break fee either time.

Trimm Trabb

I’m switching at the moment - and just waiting from letter of offer from AIB which should come in the next couple of days. Any time I’ve checked with EBS they have quoted me zero break fee and offered to hold this for five days.

I believe after the letter of offer I will still have to have my house valued and some other bits with AIB so at what point to I ask for the hold with EBS and ask for my solicitor to start their work?

mp3ireland2

https://www.boards.ie/discussion/comment/118908603#Comment_118908603

Did you switch banks or just switch within EBS? Unsure I can get the green rate as i previously got cashback on my existing mortgage. Worth asking question though!

Bigserious1

The website is pretty clear thats its 10% of the balance per year. Not sure if you need to wait 12mths before lodging the overpayment. I read somewhere you can only do it once per annum rather then smaller amounts every month.

Most banks when you over pay, apply it to the principle immediately but don't amend the contractual limit on the account. If you ask for the repayments to reduce they then amend the limit to match the balance and system then adjusts the repayments to match the closing date. If you don't adjust the limit the repayments don't change but you will obviously redeem the account early anyway.

Hope that makes sense! Not sure exactly how Avant do it though.

https://www.boards.ie/discussion/comment/118908904#Comment_118908904

Within EBS, the first time I was 2.5 years into a 5 year fixed rate (3%) with cashback availed of at the start of that rate. Two weeks later, they brought out the Green Mortgage so I broke the new fixed term to move to that. I would expect to no longer receive the outstanding 1% cashback at the original end of year 5 - which to be honest, I had forgotten about anyway.

mp3ireland2

Cool that sounds promising, yeah I'd sacrifice the cashback at the end of 5 years as savings per month are quite decent so hopefully works for me too.

Sunrise_Sunset

I rang PTSB today, they quoted me a zero fee break for the fixed portion of the mortgage! Delighted with that. Also heard back from the broker with Avant and have a list of the all the docs and forms we will need. Hadn't been planning on re-financing so I'm just hoping that our accounts are in order. We do the lotto most weeks for example. But other than that I think we should be pretty ok, we've no outstanding loans or credit card bills.

lawred2

https://www.boards.ie/discussion/comment/118879314#Comment_118879314

I've used them multiple times. Very reliable and efficient. Have recommended to friends. They are increasingly busy though.

lawred2

https://www.boards.ie/discussion/comment/118889438#Comment_118889438

On our fifth mortgage. Never once been asked for something like that.

tobottherobot

FWIW, I contacted BOI for my break fee back in January. It was €1979 for coming out of a €390k mortgage, 5 year fixed at 3% with 2 years remaining.

I called yesterday and it was €0. Both my broker and the bank indicated that it's very volatile at the moment. Expecting to draw down in the next 1-2 weeks so hopefully it stays as is!

christy c

@tobottherobot You're probably better off to break now and go on a variable rate for the next week or 2. At least you lock in the zero break fee, but might pay a tiny bit extra in interest

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118889438#Comment_118889438

Did you manage to get this sorted? I am gathering all the docs needed atm, just waiting on the salary cert now. Was wondering if they'd come back asking for anything else.

Tusky

https://www.boards.ie/discussion/comment/118926938#Comment_118926938

No, it's ongoing. It's been a bit of a nightmare to be honest. I switched from AIB to KBC before and it was a breeze. But Avant are asking for way more stuff. They asked for my property survey (done before I bought the house) and then went through it asking for evidence that X, Y and Z had done. They are now asking for proof that everyone who carried out the works was certified. I'm having to contact electricians and plumbers who I haven't spoken to in years to ask for certs, but am not having much luck with it. I don't know if Avant will pull their offer if I can't meet all the conditions.

masterboy123

I am in the process of switching from PTSB to AIB.

The AIB are now requesting to get a proof from PTSB that life cover from IrishLife could be moved to AIB if paid in full.

It's difficult getting in touch with PTSB and will take another few weeks until I get this document.

I wonder is it possible to just get a new Life cover? And can we usually cancel the old life cover with IrishLife without any penalties?

Many thanks.

Bigserious1

https://www.boards.ie/discussion/comment/118932205#Comment_118932205

No that would be crazy to take out a new policy. I would call Irish Life and ask them if PTSB have an assignment noted over your existing policy. Sometimes the Banks never went to the trouble to making sure their interest was noted.

If they do, then Irish Life should be able to give you a copy of the notice of assignment. It might say it's held by PTSB for all liabilities but your CCR would show AIB if you had any other mortgages open with them. If it only states the 1x mortgage number then AIB should accept that.

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118931486#Comment_118931486

Wow, I can't believe they are asking for all that stuff! I think I'd be royally screwed if I were to be asked for similar. I wouldn't know where to start, especially for works done before buying the house. Has your broker given any advice as to whether they could pull the offer?

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118932205#Comment_118932205

We had to get new life cover when we last re-mortgaged as the term they were giving us was a few months longer and the insurance company would not bend and give us an exemption, even though there would have only been a few grand left on the mortgage at that stage, less than 10k. We had to push ahead as things were already hugely delayed so we got new life cover, rather than going back to the underwriters to get approval for the slightly shorter term, as it was the quickest option. It cost us more, but newer policies have a conversion option which we availed of. We ended up keeping our old life cover too although it's no longer connected with the mortgage, it's just a term life insurance policy. I don't think it'd be too big of a deal if you had to get new cover, unless there are health issues to be considered.

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118931486#Comment_118931486

Hi Tusky, just wondering if you managed to get this sorted in the past couple of weeks? I've sent across all the required documents to the broker, just waiting to hear back now.

Tusky

https://www.boards.ie/discussion/comment/118983699#Comment_118983699

No, I haven't. I'm still chasing tradesmen asking for certs. Most of them are not returning my calls - very frustrating.

Sunrise_Sunset

https://www.boards.ie/discussion/comment/118984474#Comment_118984474

Sorry to hear that. Very disappointing to have to provide that many documents and certs. Do they send someone out to value the property? Is that how they knew the house had had work done and would require the certs for it? I suppose I'm best to assume that I'll be asked for similar. I seem to remember when we bought our house, where the previous owners had already converted the attic, the solicitor mentioning the cert for this work would be held at the bank along with the deeds. I could be mistaken on that though.

Would you consider staying with your current mortgage provider?

Tipsy McSwagger

It’s too much of a pain providing so many documents that I have given up.

timetogo1

https://www.boards.ie/discussion/comment/118986771#Comment_118986771

I'm approaching the same for my application. Jumped through all the hoops. Waiting 5 weeks now for any update. Check with the broker and he just says, no update. I've been paying our mortgage for 15 years, never any issue. I'm earning twice what I was earning when I got the mortgage years ago. I understand the banks have to do their DD as the system in Ireland puts all onus on them if they borrower defaults but come on.

Would be happy to switch and fix for as long as possible to lock in the lower rate. If I don't hear anything by next week I'll be contacting my current bank and just locking in their longest, cheapest rate.

47akak

https://www.boards.ie/discussion/comment/118824823#Comment_118824823

I did in fact get an offer of nil breakage.