Mortgage - low fee for breaking fixed rate

Klonker · 12-04-2019 11:07pm

mrcheez wrote:

Well it's probably better to drop down to 2.9% from 3.1% anyway if I'm going to have to pay a breaking fee to pay in a lump sum. I'm not allowed to pay in a lump sum on a fixed term without breaking it.

Did you see my example above though? Would only cost 250 to pay the lump sum off but 1000 if you wanted to change rates as when paying the lump sum it's viewed as you're only breaking 50k of the mortgage but if changing rates you are breaking the complete 200k mortgage so will have to pay 4 times more of a break fee.

mrcheez · 13-04-2019 9:04am

Klonker wrote: »

Did you see my example above though? Would only cost 250 to pay the lump sum off but 1000 if you wanted to change rates as when paying the lump sum it's viewed as you're only breaking 50k of the mortgage but if changing rates you are breaking the complete 200k mortgage so will have to pay 4 times more of a break fee.

right, I'll be checking my decisions with my financial adviser as well just to be extra sure before committing to anything.

bunderoon · 14-04-2019 12:28am

This is slightly off topic as its not about changing from one fixed to another - but for those reading this and havent acted in the last few years; definitely ring the bank.

For example - we are 5 years into a 30 year small mortgage and were on variable 4.5 % and rang and changed to a 5 year fixed. Dropped down to 3% and by 70 euro a month. This gives us time to review and plan our next move for when the fixed term is up.

LizardKing · 15-04-2019 10:26am

LizardKing wrote: »

Got the letter this morning as I was running out the door.

Only had a quick check

It didn't quote a break fee and had some initial blurb about possible charges for breaking fixed rate and refer to section D ( section D had some formula they use for calculating the fee but no actual fee (that I could see)

It had a number of rate options listed including the 2 year 2.9% and also a 3 year 3.0%

I may be better off waiting to change when my fixed rate ends.

Even thought they suggest "You can do this all online, there’s no need to call or visit a branch:"

I'm thinking this may require a PHONE call after all as suggested by others in order to get the calculated break fee figure from them.

Rang this morning. I misjudged my fixed term and have longer left than I thought .. my break fee was €357

I think I will wait until closer to the end of my current 3.0% fix before jumping. Hopefully the 2.9% is still available then and the break fee should come way down.

Prezatch · 15-04-2019 2:49pm

Just to note, AIB lowered their fixed interest rates last Wednesday and introduced a 10 year fixed rate. A sign of potential lower fixed rates coming from competitors soon or at least more extensive options including longer terms. Compared to Europe we are still well behind the curve

Soarer · 15-04-2019 3:19pm

Speaking of AIB, the fact you can get a 3 year fixed for 2.85% and a 10 year fixed for 3.3% kinda points to interest rates falling sometime soon?
Can't see why they'd off 2.85% if rates are gonna go up.

Thegalwayman · 19-04-2019 9:27pm

21 yrs left on Ulster Bank 3.2% fixed til March 2021 530 breakage fee and option of 4 yrs at 2.6%. Saves 60odd a month. Pity UB are so slow to do anything requested breakage fee on 11th April received in todays post and it's valid until 26th April but I have to get rate change request form from them which can't request until 23rd with the bank holiday and then I won't receive it til May so presumably will be on variable rate of 4.3% for a few weeks

hatchman · 19-04-2019 9:39pm

Thegalwayman wrote:

21 yrs left on Ulster Bank 3.2% fixed til March 2021 530 breakage fee and option of 4 yrs at 2.6%. Saves 60odd a month. Pity UB are so slow to do anything requested breakage fee on 11th April received in todays post and it's valid until 26th April but I have to get rate change request form from them which can't request until 23rd with the bank holiday and then I won't receive it til May so presumably will be on variable rate of 4.3% for a few weeks

I switched from 4 year fixed to another four year fixed in Jan with UB and they said they never got request which was done online what's new with UB online ! But I raised a stink and it was all refunded. So if I were u I would keep calling and demanding !

Cona · 24-04-2019 2:12pm

Question for those who have moved their mortgage to another bank....Do you need to provide all the same documentation to the new bank as you did when originally applying for mortgage? i.e 6 months bank statements, salary certs etc?

grahamor · 24-04-2019 3:23pm

Cona wrote: »

Question for those who have moved their mortgage to another bank....Do you need to provide all the same documentation to the new bank as you did when originally applying for mortgage? i.e 6 months bank statements, salary certs etc?

Yes, it's a brand new mortgage from the banks perspective.

ando · 25-04-2019 3:13pm

Hi, I'm on 3.4% fixed with PTSB. Rang them there as my LTV has gone down to 60% since initially taking it out 3 years ago but they told me there is no point attempting to change as the lowest we can offer you is 3.7% .... Anyone else get a point blank refusal from the bank?

bazz26 · 25-04-2019 5:54pm

I rang my current bank (BOI) about 2 weeks ago being around 12 months into a 2 year fixed rate of 3.2%. They quoted me €194 to break my current fixed rate and initially offered a new fixed rate of 2.9% based on the LTV of 60-80% which would save me about €30 a month. I told them I was shopping around and willing to move if the sums make it worthwhile. They came back a day later with a revised fixed rate of 2.8% but couldn't offer me any cash back offers they would offer new customers. I am happy to sit tight for the moment as I heard that some banks might be revising their interest rates soon enough which usually means the rest will follow.

stdidit · 25-04-2019 5:55pm

ando wrote: »

Hi, I'm on 3.4% fixed with PTSB. Rang them there as my LTV has gone down to 60% since initially taking it out 3 years ago but they told me there is no point attempting to change as the lowest we can offer you is 3.7% .... Anyone else get a point blank refusal from the bank?

There isn't much point if the best rate they can offer you is higher than what you're on.

PTSB only offer good rates to new customers.

In your case your better off finding out how much it will cost to break out of the fixed rate and then move to another provider, assuming the sums match up and it's worthwhile..

Thegalwayman · 25-04-2019 9:59pm

Regarding obtaining better rates by advising of lower LTV band does the customer have to bear the cost of valuation or do they generally just do their own search on comparable properties.

bazz26 · 25-04-2019 11:49pm

Thegalwayman wrote: »

Regarding obtaining better rates by advising of lower LTV band does the customer have to bear the cost of valuation or do they generally just do their own search on comparable properties.

If staying with the same bank I'd imagine the customer would have to get the property revalued. If moving your mortgage to another bank then the new bank may include a free valuation as part of the move, or include the cost of it along with legal and solicitors fees upto a certain amount as part of the package to move.

Cee-Jay-Cee · 26-04-2019 12:54am

I had 6 months left on a 3yr fixed term at 3.2%. I fixed again for 3yrs at 3.0% saving me €10 a month (better than nothing I guess) I could have fixed for 2yrs at 2.9% and saved €20 a month but rather have the slightly longer fixed term.

It cost zero to break the fixed term.

ando · 26-04-2019 10:12am

When I got my mortgage a few years ago I got 2% back, but it states I need to stay with them for 5 years or pay them back the 2%... :

In the event that the applicant wishes to redeem the loan in full at any time within the period of 5 years from the date of drawdown, the said sum of 2% of the original loan amount will become payable by the applicant to permanent tsb and accordingly will be added to the redemption amount which the Bank will require the applicant to pay in order to redeem the mortgage.

Does anyone know if this is still the case as I'm now looking to switch but this would stop me as I'm still within the 5 years...

bazz26 · 26-04-2019 10:14am

Check with your bank I'd say.

ando · 26-04-2019 1:57pm

Yes I can leave without penalty or breakage fee, sweet

Summer8181 · 08-07-2019 9:40pm

I've 98,000 left on my mortgage. I'm on a fixed rate for another 18 months. 146 months left to pay. I have nearly 10k saved. I remember seeing a break calculation on one statement last year. Rate x month x time etc. Was something like 6k.

Does anyone have that formula. Want to figure out should I pay off the 10k and move to 3% interest rate or wait for the 18 months to lapse.

Klonker · 08-07-2019 11:04pm

Summer8181 wrote: »

I've 98,000 left on my mortgage. I'm on a fixed rate for another 18 months. 146 months left to pay. I have nearly 10k saved. I remember seeing a break calculation on one statement last year. Rate x month x time etc. Was something like 6k.

Does anyone have that formula. Want to figure out should I pay off the 10k and move to 3% interest rate or wait for the 18 months to lapse.

Its best just call your bank and they can tell you how much it'll cost.

Mantis Toboggan · 08-07-2019 11:07pm

Anyone beat 3% fixed on a new mortgage?

nitros7 · 09-07-2019 8:15am

Depends on the LTV

Have a look at the calculator below

https://www.bonkers.ie/compare-mortgages/your-results/

Cyrus · 09-07-2019 8:49am

Mantis Toboggan wrote: »

Anyone beat 3% fixed on a new mortgage?

yep i fixed at 2.5% for 5 years

deco72 · 09-07-2019 10:13am

Mantis Toboggan wrote: »

Anyone beat 3% fixed on a new mortgage?

AIB are 2.85% on 3,4,5 year fixed rate at the min.

gazzer · 09-07-2019 11:26am

Are there many banks offering good remortgage rates? Thinking of switching and seeing if we can get a €15,000 top up for some landscaping and bathroom redesign.

barrystealover · 09-07-2019 12:02pm

Cyrus wrote: »

yep i fixed at 2.5% for 5 years

May i ask:
-the institution?
-the loan to Value?
-how long ago you tied into this?

seems v good.

Cyrus · 09-07-2019 12:13pm

barrystealover wrote: »

May i ask:
-the institution?
-the loan to Value?
-how long ago you tied into this?

seems v good.

ulster bank
circa 50%
last year but still available on the website

howsshenow · 09-07-2019 12:47pm

Ulster Bank are very strict on Salary multiple affordability etc on my transfer application from Boi. I wasn't successful.
Ask them to run the numbers first before getting statements etc.
Exceptional offer though and more people should apply.
I will have to wait for other Banks to follow.

Tandey · 09-07-2019 1:48pm

Mantis Toboggan wrote: »

Anyone beat 3% fixed on a new mortgage?

2.8% 5 year fixed term with KBC.

Mortgage - low fee for breaking fixed rate

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