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Mortgage - low fee for breaking fixed rate

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Comments

  • #362
    Darc19
    Registered Users Posts: 3,817 ✭✭✭Darc19


    Hold off making a decision until the fixed rate is finished. You may find Boi will have reduced their rates to compete with aib, ub and KBC.

    Also the 1% extra lump sum may make Boi the best value for you.


  • #363
    Soarer
    Registered Users Posts: 8,856 ✭✭✭Soarer


    I've twice broken my fixed rate with AIB in recent months, and haven't been charged a breakage fee either time.

    First time was back in November.
    Was on a fixed rate and they announced their 5 year Green rate of 2.5%. Breakage fee was calculated at €0, so I swapped.
    Then last week they announced their Green rate was dropping to 2.45%. Received confirmation today that there's €0 breakage fee again, so sent off the amendment form while ago.
    I know that second one only works out at around €8.30 per month, but it's better in my pocket than theirs.


  • #364
    jack in the box
    Registered Users Posts: 146 ✭✭jack in the box


    calistro wrote: »
    Brilliant thread folks!

    Wonder could someone answer the below for me please regarding a switch.

    I have a tracker mortgage with PTSB which I'm keeping, some years back we took out another small mortgage for house renovations so as not to loosed the tracker rate. Had never really thought much about it until this thread and I checked the VR which is 5.8%!! My question is, if I switch, what do I use as the LTV?, is it the values on the main tracker mortgage ?

    Thanks for any help.

    Tracker plus your small mortgage divided into the value of your home is your LTV. You will more than likely lose your tracker if you switch banks. There is no breakage fee to come out of a tracker.


  • #365
    autumnalcore
    Registered Users Posts: 824 ✭✭✭autumnalcore


    Soarer wrote: »
    I've twice broken my fixed rate with AIB in recent months, and haven't been charged a breakage fee either time.

    First time was back in November.
    Was on a fixed rate and they announced their 5 year Green rate of 2.5%. Breakage fee was calculated at €0, so I swapped.
    Then last week they announced their Green rate was dropping to 2.45%. Received confirmation today that there's €0 breakage fee again, so sent off the amendment form while ago.
    I know that second one only works out at around €8.30 per month, but it's better in my pocket than theirs.

    Did you have to submit a BER or summat for that,


  • #366
    maggots_123
    Registered Users Posts: 28 ✭maggots_123


    Soarer wrote: »
    I've twice broken my fixed rate with AIB in recent months, and haven't been charged a breakage fee either time.

    First time was back in November.
    Was on a fixed rate and they announced their 5 year Green rate of 2.5%. Breakage fee was calculated at €0, so I swapped.
    Then last week they announced their Green rate was dropping to 2.45%. Received confirmation today that there's €0 breakage fee again, so sent off the amendment form while ago.
    I know that second one only works out at around €8.30 per month, but it's better in my pocket than theirs.

    Yes, very similar story here! I am on the 2.85% 5 year fixed rate since last August. I seen AIB were now offering a 2.55% 5 year fixed, so I asked them to quote me a breakage fee for transferring to the better rate. The letter came out and breakage fee was 0.00! Happy days, that’s €30’ish a month savings! Best thing about transferring to a better rate with the same company is that there are no solicitors, no applications, no paperwork etc!


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  • #367
    Soarer
    Registered Users Posts: 8,856 ✭✭✭Soarer


    autumnalcore wrote: »
    Did you have to submit a BER or summat for that,

    Yeah.

    Have the original one from the house. Just noticed that it's only valid until November this year, so AIB better drop another bit in the next 6 months 'cause I'm not paying for a new cert! :P


  • #368
    aomh
    Registered Users Posts: 38 ✭aomh


    maggots_123 wrote:
    Yes, very similar story here! I am on the 2.85% 5 year fixed rate since last August. I seen AIB were now offering a 2.55% 5 year fixed, so I asked them to quote me a breakage fee for transferring to the better rate. The letter came out and breakage fee was 0.00! Happy days, that’s €30’ish a month savings! Best thing about transferring to a better rate with the same company is that there are no solicitors, no applications, no paperwork etc!


    Jesus, I've been quoted €1900 to change my fixed rate with the same bank, UB


  • #369
    Millem
    Registered Users Posts: 7,729 ✭✭✭Millem


    I have had 2 phone calls from AIB this week telling me they don’t want to lose my business and will I fix with them at 2.55%.

    I have done the sums and told them if they can get it all sorted before 1st April I will consider it.
    Ulster bank or maybe it is just the person we are dealing with is very disorganised at best and unbelievably slow.

    I have to pay a breakage fee....which I presume is now out of date and legal fees and higher mortgage payment for April now at this stage....the savings gap on switching banks is diminishing.

    Has anyone managed to get the green rare with AIB 2.45% with no BER cert? AIB told me they have put in exceptions but they were turned down.


  • #370
    mrcheez
    Registered Users Posts: 13,614 ✭✭✭✭mrcheez


    Has anyone found the current Covid-19 restrictions have made changing mortage provider problematic (such as getting valuations done etc) ?


  • #371
    Millem
    Registered Users Posts: 7,729 ✭✭✭Millem


    I just refixed with AIB 5 years @ 2.55%.
    Ulster bank were far too painful and slow to deal with and every delayed month was cost me almost €300!


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  • #372
    purple hands
    Registered Users Posts: 1,069 ✭✭✭purple hands


    Is there a quick and straightforward way to get a quote for breakage fee from AIB? Imagine they're up the walls at the moment anyway


  • #373
    Millem
    Registered Users Posts: 7,729 ✭✭✭Millem


    purple hands wrote: »
    Is there a quick and straightforward way to get a quote for breakage fee from AIB? Imagine they're up the walls at the moment anyway

    Ours was going really quickly....then the coronavirus hit and our breakage fee ended up being out of date!
    Anyway in fairness to them they sorted it very quick....got the forms to sign last night by email at 7pm and scanned them back and at 7am this morning got a reply.

    Ask them to waive your breakage fee....that’s what we did plus we didn’t have to pay legal fees.
    Otherwise we would of gone to Ulster @ 2.2% as painful as they are to deal with!


  • #374
    mrcheez
    Registered Users Posts: 13,614 ✭✭✭✭mrcheez


    I love how my questions always ignite this thread again... though the question I asked never gets answered :D


  • #375
    ftm2008
    Registered Users Posts: 222 ✭✭ftm2008


    mrcheez wrote: »
    I love how my questions always ignite this thread again... though the question I asked never gets answered :D

    I rang a valuer for Aib as I wanted to fix on 2.5% currently on 3.15%
    He said he could do it but in the current climate it is an unknown if a bank will take a valuation right now so
    I need to talk to the back

    Maybe tho a deep recession could bring interest rates down alot more .. or maybe it could go the other way ..


  • #376
    johnfás
    Registered Users Posts: 1,340 ✭✭✭johnfás


    ftm2008 wrote: »
    I rang a valuer for Aib as I wanted to fix on 2.5% currently on 3.15%
    He said he could do it but in the current climate it is an unknown if a bank will take a valuation right now so
    I need to talk to the back

    Maybe tho a deep recession could bring interest rates down alot more .. or maybe it could go the other way ..

    Base rates are already negative. The interest rate is pretty much solely lenders margin these days. Can’t see them going up any time soon but the only reason they’ll come down further is a reduction in margin.


  • #377
    Yourmama
    Registered Users Posts: 205 ✭✭Yourmama


    Anyone in process to switch provider these days? Fix with BOI ends mid June and I wouldn't mind to switch, but getting all the paperwork might be tricky I suppose


  • #378
    TakeTheVeil
    Registered Users Posts: 553 ✭✭✭TakeTheVeil


    mrcheez wrote: »
    Has anyone found the current Covid-19 restrictions have made changing mortage provider problematic (such as getting valuations done etc) ?

    Ive had a valuation cancelled as they are not deemed essential. Hoping to return to normal in next two weeks.


  • #379
    NickSantigo
    Registered Users Posts: 72 ✭✭NickSantigo


    Very interesting thread

    I have 3 years left on a 5 year fixed with BOI at 3 %. Our LTV is around 60%.
    We are thinking of getting an extension done.
    UB are offering a great deal for us at the moment (2.2%).

    I was wondering would BOI charge us a breakage fee if we topped up our mortgage andstayed with them and went into another fixed term with them or would we be better off breaking with them and going with UB?

    Update:
    I called BOI and they quoted my breakage fee at over 4,700 :(
    Looks like I won't be moving soon


  • #380
    3DataModem
    Registered Users Posts: 3,939 ✭✭✭3DataModem


    sternn wrote: »
    I was speaking to the bank today, and I have now moved my mortgage from the 3.2% fixed rate (with still around 1 year to go on the fixed rate)

    So I'm now on a new 2 year fixed rate term for my mortgage but at 2.9%.

    They're happy to see you commit for 2 years to fix, even at a lower rate.

    That suggests
    1. They think you are likely to switch, so happy to lock you in
    2. They think interest rates will fall further.

    There are plenty of examples of people having zero fee to break a fixed rate to go to a lower fixed rate but over a longer period.

    Well done.


  • #381
    Leslie91
    Registered Users Posts: 4,017 ✭✭✭Leslie91


    NickSantigo wrote: »
    Very interesting thread

    I have 3 years left on a 5 year fixed with BOI at 3 %. Our LTV is around 60%.
    We are thinking of getting an extension done.
    UB are offering a great deal for us at the moment (2.2%).

    I was wondering would BOI charge us a breakage fee if we topped up our mortgage andstayed with them and went into another fixed term with them or would we be better off breaking with them and going with UB?

    Update:
    I called BOI and they quoted my breakage fee at over 4,700 :(
    Looks like I won't be moving soon

    I was the same... breakout fees outrageous. Need to wait until it ends.


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  • #382
    chases0102
    Registered Users Posts: 1,034 ✭✭✭chases0102


    Leslie91 wrote: »
    I was the same... breakout fees outrageous. Need to wait until it ends.

    Same - is it so high due to the fact that they have us locked in for 3 more years?


  • #383
    bobbyg
    Registered Users Posts: 600 ✭✭✭bobbyg


    NickSantigo wrote: »
    Very interesting thread

    I have 3 years left on a 5 year fixed with BOI at 3 %. Our LTV is around 60%.
    We are thinking of getting an extension done.
    UB are offering a great deal for us at the moment (2.2%).

    I was wondering would BOI charge us a breakage fee if we topped up our mortgage andstayed with them and went into another fixed term with them or would we be better off breaking with them and going with UB?

    Update:
    I called BOI and they quoted my breakage fee at over 4,700 :(
    Looks like I won't be moving soon

    Ask them to send you out the details and the calculation in a letter don't accept a quote over the phone. I had the same issue but got a different value when I received the letter. It was a different bank but I was quoted 3k over the phone then when I received the letter it was zero. I also know a few people of have dealt with BOI, they seem to be the most difficult to deal with but I have seen them back down and change the breakage fee when someone when they threatened to switch to Ulster Bank. This was on a 400k Mortgage with 20 years left


  • #384
    Cyrus
    Registered Users Posts: 19,646 ✭✭✭✭Cyrus


    chases0102 wrote: »
    Same - is it so high due to the fact that they have us locked in for 3 more years?

    there is a proscribed formula for calculating the break fee, read the threads on askaboutmoney,

    same for everyone, and it depends on date you fixed , size of the mortgage and some other factors.


  • #385
    Cona
    Closed Accounts Posts: 591 ✭✭✭Cona


    NickSantigo wrote: »
    Very interesting thread

    I have 3 years left on a 5 year fixed with BOI at 3 %. Our LTV is around 60%.
    We are thinking of getting an extension done.
    UB are offering a great deal for us at the moment (2.2%).

    I was wondering would BOI charge us a breakage fee if we topped up our mortgage andstayed with them and went into another fixed term with them or would we be better off breaking with them and going with UB?

    Update:
    I called BOI and they quoted my breakage fee at over 4,700 :(
    Looks like I won't be moving soon

    Were you planning on doing an equity release to fund the extensions? Just wondering if banks still do that?


  • #386
    NickSantigo
    Registered Users Posts: 72 ✭✭NickSantigo


    Cona wrote: »
    Were you planning on doing an equity release to fund the extensions? Just wondering if banks still do that?

    As our LTV is most likely under 60% our plan was to increase our mortgage when moving to fund the extension. From talking to BOI this morning they were willing to accommodate this but I wanted to move as I could get a much lower fixed rate elsewhere


  • #387
    BigAl81
    Registered Users Posts: 1,115 ✭✭✭BigAl81


    Eek,

    Just rang BOI there, 3 years left of a 5 year fixed at 3%.

    I was quoted €9,248 to break ;(

    I've broken out of fixed before with PTSB for zero so I wasn't expecting it to be that much ;(

    He said the rate changes every day so I'll check back in now and again.

    Has anyone had any luck with BOI before?


  • #388
    chooey
    Registered Users Posts: 311 ✭✭chooey


    sorry for bringing up this thread again but I would also like to know if anyone has had any luck with BOI getting the breakout fee reduced?



  • #389
    tbayers
    Registered Users Posts: 501 ✭✭✭tbayers


    So im on 2.5% 5 year fixed rate with AIB taken out 2 years ago. That rate is now down to 2.15%. Will definitely be ringing them tomorrow and try and get on the lower rate.



  • #390
    Szero
    Registered Users Posts: 162 ✭✭Szero


    For anyone switching ... Avant Money now offer 1,500 EUR Cashback until 31 March with their 1.95% fixed rate if you are switching from Ulster Bank or KBC and borrowing at least 100k. Switch has to be via a "Avant Gold" broker such as Doddl.ie who do not charge commissions.



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  • #391
    Del007
    Registered Users Posts: 1,584 ✭✭✭Del007


    What's the going rate that a solicitor charges to change mortgages?



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