Mortgage - low fee for breaking fixed rate

barrystealover · 31-08-2019 1:32pm

BigAl81 wrote: »

You can take the cash back and "three year fixed" deal, then switch away in a year for free for a better rate, or even more cash back with another bank

Source: I got 17k cashback in 13 months

So 3 year fixed means nothing then if you don't have to stay for the term. Are u not financially penalised if you leave before that?

I assume a fixed % rate as oppose to variable is the way to go then?

How in good God did u get 17k back?

mrcheez · 31-08-2019 2:15pm

Anyone know who currently has the best rates with cashback etc?

I'm FINALLY going to get an opportunity to chance my arm with negotiating the 2.8% with BOI, but want to sound convincing that I am really considering a "better" offer with someone else.

BigAl81 · 31-08-2019 3:52pm

barrystealover wrote: »

So 3 year fixed means nothing then if you don't have to stay for the term. Are u not financially penalised if you leave before that?

How in good God did u get 17k back?

No penalty with PTSB and KBC anyway. As in ZERO cost to break out of your "fixed" contract!! I think some banks charge a few hundered euro. It's mad but true!!

I got 2% cash back, then switched again in 12 months and got 2% more with the next bank. Will be trying for another 2% in January

It does take some work, but run the numbers, it's worth the few hours of admin. I reckon 16hrs per switch, so about 500 euro an hour I got paid

Del007 · 31-08-2019 4:50pm

If you are changing then make sure you shop around for solicitors.

My solicitor charges me 2,300 to change. I got 3 grand from KBC.

It was a total rip off but it was my own fault for not asking him the price

stdidit · 31-08-2019 5:16pm

BigAl81 wrote: »

No penalty with PTSB and KBC anyway. As in ZERO cost to break out of your "fixed" contract!!

Are you sure this is correct? I know you might not have to pay anything, but didn't think it was guaranteed. I thought early break fees vary almost by the day from nothing to possibly thousands depending on a number of criteria but I'm not sure so would like some one to clarify.

somewhere45 · 01-09-2019 4:01pm

Del007 wrote: »

If you are changing then make sure you shop around for solicitors.

My solicitor charges me 2,300 to change. I got 3 grand from KBC.

It was a total rip off but it was my own fault for not asking him the price

Damn that is a lot. Paid €1,019 myself. Defo shop around.

somewhere45 · 01-09-2019 4:06pm

mrcheez wrote: »

Anyone know who currently has the best rates with cashback etc?

I'm FINALLY going to get an opportunity to chance my arm with negotiating the 2.8% with BOI, but want to sound convincing that I am really considering a "better" offer with someone else.

Have a look at bonkers.

Also remember that the European central bank is meeting at the 13th this month and its looking like another cut.

Then again the Irish banks are very slow to react to this.

flugel · 01-09-2019 10:15pm

stdidit wrote: »

I thought early break fees vary almost by the day from nothing to possibly thousands depending on a number of criteria but I'm not sure so would like some one to clarify.

This

Less than 3 years into life of mortgage, I was being quoted from €700 up to €2000 for "breakage" fee with Bank of Ireland. That's if I were to avail of a newer, cheaper BoI rate

On top of that, if i wanted to move banks I'd have to pay a redemption fee

Unfortunately when I last made my enquiries I wasn't going to save any money

chases0102 · 05-09-2019 9:05am

Very interesting thread - it makes sense really, and if anyone wishes to save for the future or perhaps boost their pension, the most prudent thing to do is to keep trying to save money on your mortgage.

I'm BOI, 1 year into a 5 year fixed. How does one go about getting a quote for a breakage fee - is it just a case of phoning them?

mrcheez · 05-09-2019 11:59am

chases0102 wrote: »

Very interesting thread - it makes sense really, and if anyone wishes to save for the future or perhaps boost their pension, the most prudent thing to do is to keep trying to save money on your mortgage.

I'm BOI, 1 year into a 5 year fixed. How does one go about getting a quote for a breakage fee - is it just a case of phoning them?

yep, just ring them up.

I'm going to hold off until after the ECB rate review on 13th just to see how this plays out.

Should we see Irish banks update their rates around January then?

maggots_123 · 05-09-2019 1:09pm

I've just gone 2.85% with AIB for five years. Saving €90 a month vs our old PTSB mortgage and the move cut a few years off the total mortgage term! Happy days

masterboy123 · 05-09-2019 3:07pm

What was your old PTSB rate?
I went ahead with PTSB this time given their cashback rewards.

maggots_123 wrote: »

I've just gone 2.85% with AIB for five years. Saving €90 a month vs our old PTSB mortgage and the move cut a few years off the total mortgage term! Happy days

Thegalwayman · 05-09-2019 3:17pm

masterboy123 wrote: »

What was your old PTSB rate?
I went ahead with PTSB this time given their cashback rewards.

Do all providers allow you to overpay 10% of total mortgage value on fixed rate?

Vwsham · 05-09-2019 7:15pm

maggots_123 wrote: »

I've just gone 2.85% with AIB for five years. Saving €90 a month vs our old PTSB mortgage and the move cut a few years off the total mortgage term! Happy days

I switched away from PTSB. Moved to EBS at 3%. Due to save around ten grand for the remainder of the mortgage. The cash back paid all legal fees with a little extra. This was well worth taking the time to look into. No brainer really.

masterboy123 · 05-09-2019 9:31pm

Not sure, but I am not in a position to overpay a lumpsum in the first 5 year.
And after 2 years, most likely will break and see what's the current offers then. Its important to change your mortgage frequently to save up cash.

Thegalwayman wrote: »

Do all providers allow you to overpay 10% of total mortgage value on fixed rate?

Del007 · 05-09-2019 10:07pm

Thegalwayman wrote: »

Do all providers allow you to overpay 10% of total mortgage value on fixed rate?

KBC do, not sure about the rest

bazz26 · 05-09-2019 11:30pm

BOI do too.

kjbsrah1 · 06-09-2019 1:32am

Does anyone pay their mortgage weekly or fortnightly rather than monthly? Been thinking about looking into it myself. I’m with BOI.

th283 · 06-09-2019 3:35pm

Thegalwayman wrote: »

Do all providers allow you to overpay 10% of total mortgage value on fixed rate?

BOI let you overpay by 10% or €65 a month whichever is greater. By overpaying €65 a month I’m saving €11,000 in interest and taking five years off the term

givyjoe · 06-09-2019 3:55pm

th283 wrote: »

BOI let you overpay by 10% or €65 a month whichever is greater. By overpaying €65 a month I’m saving €11,000 in interest and taking five years off the term

Thats some saving/reduction in term. Do you mind me asking what the term/mortgage was initially?

Edit: NVM, I found this handy calculator

th283 · 06-09-2019 4:02pm

givyjoe wrote: »

Thats some saving/reduction in term. Do you mind me asking what the term/mortgage was initially?

I’ve 28 years left in the mortgage, if you google bank of Ireland overpayment calculator it’ll show you how much you can save

deco72 · 06-09-2019 5:26pm

Just in the process of switching over to PTSB, able to reduce term by 5yrs, keep same repayment amount and get cash back of approx €6k once drawn down at 3yrs fixed. Can also avail of another 2% per month if I set up one and pay the mortgage through one of their explore accounts.

Does anyone know you can do a Moratorium straight away when doing a switcher mortgage? I assume you can as its essentially same as a first mortgage.

chases0102 · 10-09-2019 11:19am

Ha, I rang BOI yesterday...quoted me over 10 grand!!

Hardtochoose · 10-09-2019 11:34am

chases0102 wrote: »

Ha, I rang BOI yesterday...quoted me over 10 grand!!

What length of fixed term are you on? I was quoted €780 last month with 14 months remaining on a 2 year fixed term. Would imagine it’s a bit lower now with another month gone and will be lower again hopefully in a months time with an ECB rate cut

chases0102 · 10-09-2019 11:39am

To be honest, I half expected such a figure....I'm only just over a year into a 5 year fixed.

bugsyb4 · 10-09-2019 12:00pm

About a year left on a 3 year fixed term 3% and got quoted €500 there as breakage fee.

Best they could offer me was 2.9% over 1 or 2 years. I mentioned about 2.8% but no budging, has anyone got that rate recently?

This was with BOI not worth it really as only be paying €15 less a month on mortgage repayments.

BBMcQ · 10-09-2019 4:45pm

Was anyone else left massively out of pocket by switching? We’ve just been asked for over 3 grand by the solicitor (separate to his fees) for the difference between the mortgage redeemed from the old provider and the mortgage given by the new provider. Came as a massive shock. I understand it’s accrued interest not paid yet to the old provider but our mortgage payment was only 1500 a month. New mortgage is 1300 a month.

It’s taken the wind right out of our sails and made us wonder if we’ve made a huge mistake in switching!

Cyrus · 10-09-2019 5:17pm

BBMcQ wrote: »

Was anyone else left massively out of pocket by switching? We’ve just been asked for over 3 grand by the solicitor (separate to his fees) for the difference between the mortgage redeemed from the old provider and the mortgage given by the new provider. Came as a massive shock. I understand it’s accrued interest not paid yet to the old provider but our mortgage payment was only 1500 a month. New mortgage is 1300 a month.

It’s taken the wind right out of our sails and made us wonder if we’ve made a huge mistake in switching!

sounds like a breakage fee, was it a fixed mortgage?

BBMcQ · 10-09-2019 9:24pm

Cyrus wrote: »

sounds like a breakage fee, was it a fixed mortgage?

Oh I know about that old chestnut... don’t mention the war.

Think I worked it out. When we requested the mortgage amount off the new bank, we didn’t include the accrued interest but not yet charged. For our mortgage this is 2700 per quarter! Does anyone know if this is paid in arrears or in advance?

So basically when settling the balance of new mortgage versus old, we now have to pay a quarters interest that isn’t rolled into the new mortgage. We’ve effectively and inadvertently paid an extra month off our mortgage interest that we didn’t plan to! Not good for cash flow.

Akula · 11-09-2019 12:05am

bugsyb4 wrote: »

Best they could offer me was 2.9% over 1 or 2 years. I mentioned about 2.8% but no budging, has anyone got that rate recently?

Got 2.8% offered this week for 1 or 2 years. They had to go back to the pricing desk though.

Mortgage - low fee for breaking fixed rate

Comments