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Does this make sense? Breaking my fixed rate

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  • 20-04-2019 5:29pm
    #1
    jayjay2010
    Registered Users Posts: 505 ✭✭✭


    I am currently 1 year into a 3 year fixed rate mortgage with PTSB, current rate 3.3%.

    I was shopping around and saw other banks are offering better rates than the one that I am on. Also, I believe that the same 3 year fixed rate with PTSB is currently lower than the rate I have.

    I called PTSB and asked if I could get a better rate, and understandably they said no as I am in a fixed rate for another 2 years.

    However, when I asked how much would it cost to break this fixed rate and switch to another bank, they confirmed that currently there would be no charge for doing so. So am I right in saying that technically, I could break my fixed term, switch to variable rate and then immediately fix again for another 3 years on the now better rate.

    Does this make any sense? I sure hope so! If PTSB are letting me leave for free, I don't see why they won't let me move to Variable for free.

    Thoughts?


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    #2
    Wheety
    Registered Users Posts: 5,510 ✭✭✭Wheety


    Yes. I did that with KBC. Broke at the end of one month, start of next month with a new fixed rate. Saving nearly €50 a month. Had to pay for a valuation (cost €130) though. Not sure if you'll have the same stipulation.


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    #3
    jayjay2010
    Registered Users Posts: 505 ✭✭✭jayjay2010


    Wheety wrote: »
    Yes. I did that with KBC. Broke at the end of one month, start of next month with a new fixed rate. Saving nearly €50 a month. Had to pay for a valuation (cost €130) though. Not sure if you'll have the same stipulation.


    Why did you have to pay another valuation fee? Other than that, was there anything that the bank needed you to do/pay for?


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    #4
    grogi
    Registered Users Posts: 8,615 ✭✭✭grogi


    jayjay2010 wrote: »
    Why did you have to pay another valuation fee? Other than that, was there anything that the bank needed you to do/pay for?

    Because KBC... We had to get valuation when moving within KBC to more favourable variable rate...


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    #5
    Wheety
    Registered Users Posts: 5,510 ✭✭✭Wheety


    jayjay2010 wrote: »
    Why did you have to pay another valuation fee? Other than that, was there anything that the bank needed you to do/pay for?

    KBC insisted on it.

    Filled in a form to break the fixed rate and another one to apply for new fixed rate. No other cost, apart from valuation.


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