Mortgage - low fee for breaking fixed rate

chases0102

https://www.boards.ie/discussion/comment/119079089#Comment_119079089

Thanks for that, great insight - certainly food for thought

Cyrus

https://www.boards.ie/discussion/comment/119077758#Comment_119077758

the bank account you need to get the cashback on the monthly payment has a 6 euro per month fee.

Wineman

Theres a bit of talk in the media about people coming off trackers and switching to long term fixed rates, is this a sensible move?

Mantis Toboggan

https://www.boards.ie/discussion/comment/119079408#Comment_119079408

No

CPTM

https://www.boards.ie/discussion/comment/119079334#Comment_119079334

That is correct, sorry yes. I was sort of discounting that because of the cashback on the mortgage repayments are going to cover it with lots left over.

DelmarODonnell

https://www.boards.ie/discussion/comment/119079089#Comment_119079089

Have three months left on KBC and looking to break to move to PTSB. How long do you expect yours to take?

cunnifferous

Have three years left on my fixed rate. No breakage fee so I can jump to a 5 year or 7 year fixed for approx 0.3-0.5 percentage above what I'm paying now. Should I bother or is 3 years enough to let interest rate rises wash out?

jack842

https://www.boards.ie/discussion/comment/119081643#Comment_119081643

Not sure, they say the whole proces take on average around 6 to 8 weeks in total. I guess it depends on how quick your solicitor is.

what_traffic

https://www.boards.ie/discussion/comment/119079408#Comment_119079408

Banks one of the biggest buyers of ads in the Irish Media, Interest Rates would want to rise by 1.25%-1.50% Basis points before most people on a trackers from the Celtic Tiger era would hit the lowest fixed rates. Would wait till ECB announcement in July.

Amzie

https://www.boards.ie/discussion/comment/119079089#Comment_119079089

I'm in this situation also with boi 5 year fixed have just over a year and a half left fixed. Wondering is it wise to switch or ask boi to fix at better rate is this possible? Also doing the whole mortgage application again to switch Is it very difficult like if you have more loans than you did the first time taking out the mortgage.....

jack842

https://www.boards.ie/discussion/comment/119085704#Comment_119085704

If you didnt want to go through the whole process of switching lender you could just just break your current fixed rate mortgage and move to another fixed mortage with BOI with a better rate. Your break fee is prob zero at the moment and there is no solicitors involved if your staying with the same lender so all it takes is to ring BOI mortgage dept. I'm pretty sure it can be done in only a day or two as well. Obviously if your waiting for cashback at the end of your current fixed rate you will lose that by moving.

joebloggs32

https://www.boards.ie/discussion/comment/119084143#Comment_119084143

My tracker is at +1.25% so i am going to seriously look at a move to a long term fix.

I have 14.5 years left on the mortgage. I can get a fixed rate that will see my repayment increase by just about €70 per month looking at the online calculations fixing for 10 years. Would give a lot of peace of mind

what_traffic

https://www.boards.ie/discussion/comment/119087880#Comment_119087880

You might even do better than the online calculations if you approach your current lender for a 10yr Fix

DeadSkin

https://www.boards.ie/discussion/comment/119087880#Comment_119087880

Yeah we are on a +1.15% tracker with Ulster Bank with about 14/15 years left on the mortgage, with them pulling out of Ireland not sure what to do!

rtron

https://www.boards.ie/discussion/comment/119048378#Comment_119048378

Thinking about doing the same what was the process like? Was it request a call back and handy enough from there?

Supercell

https://www.boards.ie/discussion/comment/119105131#Comment_119105131

It was handy enough, the hardest part was getting someone to answer the phone, that can take up to 45 minutes, so make sure you have your questions ready. In fairness they are great once you get through though. The paperwork is straightforward, takes about a week after the call , they seem to do it in batches, for example my BOI post only ever seems to arrive on a Thursday for some reason.

Tusky

My switch has taken so long that my valuation has expired, and a new one is required at a cost of €180.

enfant terrible

https://www.boards.ie/discussion/comment/119113342#Comment_119113342

Were you waiting long to get the valuation done? I imagine they are very busy now.

timetogo1

I abandoned my switch with Avant. I submitted all requested docs on 3rd March. Just got a request for more notes with approval in principal.

The thing is both myself and my missus will be away from Ireland at different times in July and August. So if we didn't get sorted by July it'd probably be September by the time we'd complete the job. I'm sure the rates will have gone up by then.

When applying at the start of march I didn't think it likely we'd b still be waiting on the initial approval 2.5 months later. The solicitor said they'd be 4 to 6 weeks to do their bit (whenever they start).

So I've requested the rate sheets from UB and will just fix at their best 5 year rate and have it done by the end of the week.

Got the mortgage 15 years ago and am earning over double what I was on then and never had an issue with the payments. My rate when we first got the mortgage in 2008 was 6 percent (I didn't have a clue then). I don't know why switching seems more complicated or onerous now.

Trimm Trabb

Anyone switch to AIB?

How long did it take them to pay them to put the €2000 switcher fee in your account?

macvin

https://www.boards.ie/discussion/comment/119079408#Comment_119079408

Generally the media people that write these stories do not have the faintest clue of what they are writing about. And then you also get people commenting who also do not understand.

A tracker is a rate that is at a set margin over the ECB rate.

Whether a move is wise depend on what your margin is, the balance on the mortgage and the years outstanding.

So here's my advice.

If you have a tracker of 1.25% or lower, stay put. ECB long term aim is 1%-2%.

If your tracker is 1.5% - its debatable. If you have 300k+ and 15+ year left and you can get a 15 year fixed rate of 2.7%, its probably worth it.

If your tracker is over 1.5% - (if you moved hose and got a mover tracker, the chances are it 2%+) it is possibly a good idea to look for a long term fixed rate to bring you to the end of your mortgage. However if your balance is under 150k, it probably won't be much of a difference.

but MOST IMPORTANT - DO NOT go for a short term fixed rate as you do not want to be at the vagaries of a banks standard variable rate.

In a nutshell - if you have 5+ year left and 150k+ balance and a tracker of 1.5% or more - THEN look at a long term fixed rate to bring you to the end of your mortgage (10-20 years) and get a rate of circa 2.7%.

DO NOT GO FOR 2,3,4,5,7 year rates unless that's all the time left on the term. You do not want ever to be going onto a standard variable rate

macvin

https://www.boards.ie/discussion/comment/119088742#Comment_119088742

do nothing. There will be a different logo on the annual statement. That is the only change you will see.

Breakage fee went from 6k in January to zero in May.

Happy days!

bugsyb4

https://www.boards.ie/discussion/comment/119113717#Comment_119113717

Only at start of it now as not finished our fixed rate until end of Aug.

Think I read somewhere that normally 2 months after you drawdown.

Del007

KBC offering me a 5 year fixed rate of 2.6%, I'm currently on a fixed of 2.2% which finishes at the end of the year. I'll probably go with it

ACAandCTA

I made an application to Avant on 28 April (through a broker) and just got approval in principle today. It is quoting the pre hike rate of 1.95% on 7 year fixed, which is what I expected considering the conditions for the pre hike rates were application pre 12 May, completing by 15 July.

Regarding conditions,it was just get a valuation done through their setup (I've applied for this) and then latest payslips and bank statements... So hopefully will be a reasonably quick process end to end, and we get completed before 15 July

razorronan

https://www.boards.ie/discussion/comment/119119945#Comment_119119945

Your lucky. I made my application to Avant (Through broker) on the 7th of April and am still waiting on approval in principle.

deisedevil

https://www.boards.ie/discussion/comment/119119945#Comment_119119945

I'm in the same boat. Have everything done but held up on getting title deeds back from KBC. Huge delays.

Davexirl

My funds issued today from Avant for my switcher from UB, took 3 months from initial contact with my broker.

masterboy123

https://www.boards.ie/discussion/comment/119113717#Comment_119113717

I switched to AIB about 3 weeks ago. I haven't received to 2000 yet