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Mortgage - low fee for breaking fixed rate

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Comments

  • Registered Users Posts: 553 ✭✭✭TakeTheVeil


    If you're in the position to switch without breakage fees/penalties and can afford solicitor fees before the cashback - you should probably get it done before you have a new loan to account for during your remortgage application.

    The lower interest rate and monthly repayments on the mortgage will also probably make you more suitable for a large loan.


  • Registered Users Posts: 372 ✭✭Belfunk


    BBMcQ wrote: »
    Folks, I think it’s super important to highlight because 9 out of 10 ppl don’t know this

    ALOT of the times it will make sense for you to break out of a bad fixed rate deal. Some people thing you are stuck in a fixed rate deal no matter what.

    We got AIB down from a near 5k breakage fee down to near 900! Now Ulster bank aren’t charging us anything to switch from their 2.6% fixed to 2.2% fixed. EU rules mean that a bank can only charge you a break fee based on what it would cost them to finance the remaining principle plus admin costs. AIB in particular weren’t following this until approx July 2019.

    It’s staggering to think of the amount of money out there being overpaid to banks on mortgages....

    Also 1500 all-in is the target price for a solicitor to switch. You don’t even need to meet them so I wouldn’t pay more for one just because their office is in D4.

    Can i ask how you got this deal from Ulster Bank. I am with them on a 2.6% fixed rate with two years left. I wanted to switch to 2.2% with them but they are trying to charge me over 3K break fee?


  • Registered Users Posts: 19,545 ✭✭✭✭Cyrus


    Belfunk wrote: »
    Can i ask how you got this deal from Ulster Bank. I am with them on a 2.6% fixed rate with two years left. I wanted to switch to 2.2% with them but they are trying to charge me over 3K break fee?

    its not a deal its a formula

    they arent trying to charge you anything they are applying the formula to your circumstances so thats the cost for you to break the contract you entered into


  • Registered Users Posts: 691 ✭✭✭fuse


    Belfunk wrote: »
    Can i ask how you got this deal from Ulster Bank. I am with them on a 2.6% fixed rate with two years left. I wanted to switch to 2.2% with them but they are trying to charge me over 3K break fee?

    Do Ulster bank even do 2.2%?
    Thought their lowest was 2.3

    3k seems very high, how long into the fixed rate are you? Banks have a habit of quoting a scary figure to deter you, but when you question them or go ahead, you’ll see the real regulated figure which can be much less. Ask them for a breakdown of the breakage fee.


  • Registered Users Posts: 13,583 ✭✭✭✭mrcheez


    fuse wrote: »
    Do Ulster bank even do 2.2%?
    Thought their lowest was 2.3

    3k seems very high, how long into the fixed rate are you? Banks have a habit of quoting a scary figure to deter you, but when you question them or go ahead, you’ll see the real regulated figure which can be much less. Ask them for a breakdown of the breakage fee.

    2.2 when borrowing over 300k


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  • Registered Users Posts: 19,545 ✭✭✭✭Cyrus


    fuse wrote: »
    Do Ulster bank even do 2.2%?
    Thought their lowest was 2.3

    3k seems very high, how long into the fixed rate are you? Banks have a habit of quoting a scary figure to deter you, but when you question them or go ahead, you’ll see the real regulated figure which can be much less. Ask them for a breakdown of the breakage fee.

    ulster bank send you a letter, there is no scary figure to deter you, there is one figure thats it


  • Registered Users Posts: 1,115 ✭✭✭BigAl81


    BullBauld wrote:
    Sent off a change of interest rate request with BOI.

    Do you know what the break fee is with BOI. I'm currently with them and looking to move to my 3rd mortgage provider (and cash back) in three years.

    I managed to leave PTSB with no break fee at all ;)


  • Registered Users Posts: 954 ✭✭✭devil-80


    I'm with Ptsb with 3.7% LTV. Have 12 years left on mortgage about 46k. Would it be any good savings if I switch after all fees. House it worth around 190k. Thanks


  • Registered Users Posts: 13,583 ✭✭✭✭mrcheez


    devil-80 wrote: »
    I'm with Ptsb with 3.7% LTV. Have 12 years left on mortgage about 46k. Would it be any good savings if I switch after all fees. House it worth around 190k. Thanks

    Shouldn't be any fees if you go with KBC or Ulster Bank

    With KBC you may even end up ~€1500 better off too as they give you €3000 if switching before June toward fees (which are less than 1,500).
    Although the caveat is that you need to open an account with KBC and move your salary into it which has to be at least €2K/month.

    Ulster Bank give you €1,500 toward fees but no requirement for current account.


  • Registered Users Posts: 954 ✭✭✭devil-80


    Any idea how much i could save more less?
    My salary would be less than 2k.


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  • Registered Users Posts: 13,583 ✭✭✭✭mrcheez


    devil-80 wrote: »
    Any idea how much i could save more less?
    My salary would be less than 2k.

    Ulster Bank probably best option then.

    Use the form on
    https://www.ccpc.ie/consumers/financial-comparisons/mortgage-comparisons/
    to get rough estimate on savings


    Ask PTSB for a summary of the interest you paid in 2019


  • Registered Users Posts: 146 ✭✭jack in the box


    devil-80 wrote: »
    I'm with Ptsb with 3.7% LTV. Have 12 years left on mortgage about 46k. Would it be any good savings if I switch after all fees. House it worth around 190k. Thanks

    You need to contact your provider to send you out an interest rate options letter, as there are better rates available. That's if you don't wish to switch providers.


  • Registered Users Posts: 679 ✭✭✭fungie


    mrcheez wrote: »
    2.2 when borrowing over 300k

    And if loan to value is 80% or less


  • Registered Users Posts: 8,070 ✭✭✭Cypher_sounds




  • Registered Users Posts: 2,982 ✭✭✭KilOit


    So expecting much bigger cuts from that article. I'm in the process of moving to 2.2. I'd say it'll go below that within a year or 2"but I'm not waiting around, I'll switch after 5 years with UB


  • Registered Users Posts: 5,379 ✭✭✭ando


    https://www.rte.ie/news/business/2020/0224/1117221-aib-mortgage-rates/

    I switched to AIB a few months ago and fixed at 2.85% for 5 years. Am I wasting my time ringing them up and request to move to the 2.5%? I presume moving from one offer to another within the same bank will not mean solicitor fees and re-evaluation of finances?


  • Registered Users Posts: 31,746 ✭✭✭✭gmisk


    ando wrote: »
    https://www.rte.ie/news/business/2020/0224/1117221-aib-mortgage-rates/

    I switched to AIB a few months ago and fixed at 2.85% for 5 years. Am I wasting my time ringing them up and request to move to the 2.5%? I presume moving from one offer to another within the same bank will not mean solicitor fees and re-evaluation of finances?
    I wonder if ebs will do same rate change?
    No solicitors fees if same bank as far as I know just a breakage fee though if you on a fixed rate


  • Registered Users Posts: 33,366 ✭✭✭✭listermint


    ando wrote: »
    https://www.rte.ie/news/business/2020/0224/1117221-aib-mortgage-rates/

    I switched to AIB a few months ago and fixed at 2.85% for 5 years. Am I wasting my time ringing them up and request to move to the 2.5%? I presume moving from one offer to another within the same bank will not mean solicitor fees and re-evaluation of finances?


    prob be a break fee. be prepared for whatever they say that is.


  • Registered Users Posts: 587 ✭✭✭Sync


    ando wrote: »
    https://www.rte.ie/news/business/2020/0224/1117221-aib-mortgage-rates/

    I switched to AIB a few months ago and fixed at 2.85% for 5 years. Am I wasting my time ringing them up and request to move to the 2.5%? I presume moving from one offer to another within the same bank will not mean solicitor fees and re-evaluation of finances?

    I was also on the 5 year fixed @ 2.85%. I called AIB and requested information on switching, they sent me a letter confirming the proposed changes and what fees would be involved. There was no cost to move to the 2.5% green, I just had to provide them with the BER cert.

    I think it's now changing to 2.45% also so you may want to query that - but there's no harm ringing to get this letter confirming any costs.


  • Registered Users Posts: 144 ✭✭Becks610


    Sync wrote: »
    I was also on the 5 year fixed @ 2.85%. I called AIB and requested information on switching, they sent me a letter confirming the proposed changes and what fees would be involved. There was no cost to move to the 2.5% green, I just had to provide them with the BER cert.

    I think it's now changing to 2.45% also so you may want to query that - but there's no harm ringing to get this letter confirming any costs.

    How much did your BER cert cost? I got an initial one done to ensure the BER would be what we wanted ( it’s more BER guidance) before the House was built but not at the end!


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  • Registered Users Posts: 587 ✭✭✭Sync


    Becks610 wrote: »
    How much did your BER cert cost? I got an initial one done to ensure the BER would be what we wanted ( it’s more BER guidance) before the House was built but not at the end!

    It was a new build in 2019 so our solicitor had a copy of the BER cert. Just a heads up to anyone looking at this, I initially provided AIB with a screenshot of the details from the BER register on SEAI.ie but this wasn't accepted. It has to be the cert itself.


  • Registered Users Posts: 12,235 ✭✭✭✭Cee-Jay-Cee


    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.


    As can be seen above, I came out of fixed term and changed to a new rate and fixed again for 3 years last April. I'm with BOI and I realise they haven't reduced their rates like AIB, KBC etc but I'm sure they probably will at some stage in the near future. Can I do the same again?


  • Registered Users Posts: 1,087 ✭✭✭Davexirl


    I have 3 years left on a 4 year fixed rate at 2.6%, my breakage cost was €2.4k with UB. I'll stay put.


  • Registered Users Posts: 954 ✭✭✭devil-80


    Ptsb still very expensive ��


  • Registered Users Posts: 3,817 ✭✭✭Darc19


    The funding rate that banks pay have dropped about 0.5% in the last few months.

    This is what they use to work out breakage fees. A lower rate unfortunately means a higher breakage fee.


  • Registered Users Posts: 7,729 ✭✭✭Millem


    Darc19 wrote: »
    The funding rate that banks pay have dropped about 0.5% in the last few months.

    This is what they use to work out breakage fees. A lower rate unfortunately means a higher breakage fee.

    AIB don’t use this formula :(


  • Registered Users Posts: 19,545 ✭✭✭✭Cyrus


    Millem wrote: »
    AIB don’t use this formula :(

    i believe they do now.

    check on askaboutmoney


  • Registered Users Posts: 7,729 ✭✭✭Millem


    Cyrus wrote: »
    i believe they do now.

    check on askaboutmoney

    They use the old way. I got my breakage fee yesterday.


  • Closed Accounts Posts: 1,148 ✭✭✭Salary Negotiator


    Darc19 wrote: »
    The funding rate that banks pay have dropped about 0.5% in the last few months.

    This is what they use to work out breakage fees. A lower rate unfortunately means a higher breakage fee.

    Where could one track this rate? Is it released publicly?


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  • Registered Users Posts: 197 ✭✭pp_me




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