Mortgage - low fee for breaking fixed rate

Etnies · 09-07-2019 2:14pm

I broke and refixed with Aib, 5 year fixed 2.85%

Saving about 55 euro a month. Saving about 3,300 over the fixed term.

Brakage fee was €256.

Only 34 more years left 😂

bazz26 · 09-07-2019 2:34pm

Just doing some comparisons on bonkers.ie and best I got was for a switching mortgage was:

Ulster Bank
LTV - <80%
2 year fixed rate - 2.3%
Term - 15 years left.

mrcheez · 09-07-2019 4:43pm

bazz26 wrote: »

Just doing some comparisons on bonkers.ie and best I got was for a switching mortgage was:

Ulster Bank
LTV - <80%
2 year fixed rate - 2.3%
Term - 15 years left.

Nice.. I was just about to jump for BOI 2.9% 2 Year

Must check out Bonkers

Cyrus · 09-07-2019 4:56pm

mrcheez wrote: »

Nice.. I was just about to jump for BOI 2.9% 2 Year

Must check out Bonkers

boi will do cash back as well so that has to be factored in

mrcheez · 09-07-2019 5:34pm

Cyrus wrote: »

boi will do cash back as well so that has to be factored in

What's that? They give you the difference if I went with a different provider?

Cyrus · 09-07-2019 5:38pm

mrcheez wrote: »

What's that? They give you the difference if I went with a different provider?

boi give a cash incentive to switch to them

2% of the value of the loan on draw down (and a further 1% 5 years later if you are still with them)

its a factor depending on the size of the loan.

bazz26 · 09-07-2019 5:40pm

Cyrus wrote: »

boi will do cash back as well so that has to be factored in

I'm currently with BOI so they won't give it to me to stay with them, only new customers. The best BOI will do for me is 2.8% instead of the advertised 2.9%.

mrcheez wrote: »

What's that? They give you the difference if I went with a different provider?

No they will give 3% of the value of your mortgage back in cash spread over a number of years. Many banks are offering similar to switch. Just do the maths on the total cost of switching as some of these cashback offers are not what they seem on the surface and they claw a good chunk of that back through other fees and charges over the term.

Cyrus · 09-07-2019 5:42pm

bazz26 wrote: »

I'm currently with BOI so they won't give it to me to stay with them, only new customers. The best BOI will do for me is 2.8% instead of the advertised 2.9%.

No they will give 3% of the value of your mortgage back in cash spread over a number of years. Many banks are offering similar to switch. Just do the maths on the total cost of switching as some of these cashback offers are not what they seem on the surface and they claw a good chunk of that back through other fees and charges over the term.

i was replying to the other guy thinking of switching to BOI

i took a couple of cashbacks and switched shortly afterwards

i gather its harder now.

bazz26 · 09-07-2019 5:47pm

Yeah they are certainly making it harder and trying to lock people in for longer.

mrcheez · 09-07-2019 6:54pm

Cyrus wrote: »

i was replying to the other guy thinking of switching to BOI

i took a couple of cashbacks and switched shortly afterwards i gather its harder now.

I'm already with BOI

I was saying I was considering going to their 2.9 from my current one.

But maybe I can push for 2.8 as the other poster did

BBMcQ · 09-07-2019 7:52pm

Etnies wrote: »

I broke and refixed with Aib, 5 year fixed 2.85%

Saving about 55 euro a month. Saving about 3,300 over the fixed term.

Brakage fee was €256.

Only 34 more years left 😂

AIB told us it would be 2500 approx to break, then when they dropped their STV rate, they said it would now cost over 5000. Apparently they use a formula no other bank uses, and continue to get away with it..... "Backing Brave"

Etnies · 09-07-2019 8:18pm

BBMcQ wrote: »

AIB told us it would be 2500 approx to break, then when they dropped their STV rate, they said it would now cost over 5000. Apparently they use a formula no other bank uses, and continue to get away with it..... "Backing Brave"

You must have an absolutely massive mortgage? Or how long ago was that you checked because laws have changed recently it's worth enquiring again

Del007 · 09-07-2019 8:23pm

I switched to KBC from boi. They gave me 3 grand to change and the solicitors fee came to around 2,300. Fixed it for 2 years at 2.6%

Millem · 09-07-2019 9:07pm

BBMcQ wrote: »

AIB told us it would be 2500 approx to break, then when they dropped their STV rate, they said it would now cost over 5000. Apparently they use a formula no other bank uses, and continue to get away with it..... "Backing Brave"

Similar situation here....roll on September 2020 when our fixed term is up!

James Bond Junior · 09-07-2019 11:00pm

Del007 wrote: »

I switched to KBC from boi. They gave me 3 grand to change and the solicitors fee came to around 2,300. Fixed it for 2 years at 2.6%

You won't be long leaving KBC, joke of a bank.

I fixed mine today with Ulster Bank, 2.8% fixed for 3 years. You can log in to a portal on their website which allows you to change rates and even set up a DD to overpay. It also has a calculator to allow you see how much an overpayment will save you and how much time will be shaved off too. Great feature I must say. I'm going to put my overpayment in place to match the old payment and it will shave exactly a year of the the total term.

Summer8181 · 09-07-2019 11:51pm

My mortgage was about €100,000 last year and my break fee was over €6,000 with EBS. It is not a set fee.

ted1 · 10-07-2019 12:08am

Summer8181 wrote: »

My mortgage was about €100,000 last year and my break fee was over €6,000 with EBS. It is not a set fee.

They basically calculate how much profit they are losing and charge you that.

Summer8181 · 10-07-2019 12:16am

So basically I have to save now and wait another 18 months and pay a lump sum. They have you every way

Thegalwayman · 10-07-2019 6:46am

Del007 wrote: »

I switched to KBC from boi. They gave me 3 grand to change and the solicitors fee came to around 2,300. Fixed it for 2 years at 2.6%

I’d hate to switch just to line the pockets of a solicitor with all the hassle involved. I thought €1000-€1200 was the average solicitor conveyance fee??

Cyrus · 10-07-2019 7:04am

Summer8181 wrote: »

My mortgage was about €100,000 last year and my break fee was over €6,000 with EBS. It is not a set fee.

AIB and ebs are ignoring the directive on how to calculate it unfortunately not quite sure why it’s allowed

mrcheez · 10-07-2019 10:29am

James Bond Junior wrote: »

I fixed mine today with Ulster Bank, 2.8% fixed for 3 years.

I'm assuming a no-deal Brexit shouldn't be a worrying factor in choosing a bank based outside of ROI ?

James Bond Junior · 10-07-2019 10:33am

mrcheez wrote: »

I'm assuming a no-deal Brexit shouldn't be a worrying factor in choosing a bank based outside of ROI ?

I only fixed as I am leaving the country myself for a while so wanted a fixed cost. Brexit didn't enter my head but I doubt it will be an issue.

Tusky · 10-07-2019 2:52pm

Does anyone know what the lowest fixed interest rates are for LTV of below 80%?

Del007 · 10-07-2019 3:08pm

Thegalwayman wrote: »

I’d hate to switch just to line the pockets of a solicitor with all the hassle involved. I thought €1000-€1200 was the average solicitor conveyance fee??

I stupidly didn't ask the solicitor how much it would cost. I used the same guy who I used to buy my house 2 years ago. I just presumed it would have been a cheaper fee than that. It was indeed a hassle!

bazz26 · 10-07-2019 3:39pm

Tusky wrote: »

Does anyone know what the lowest fixed interest rates are for LTV of below 80%?

Go onto bonkers.ie and enter your details.

BBMcQ · 10-07-2019 7:34pm

Etnies wrote: »

You must have an absolutely massive mortgage? Or how long ago was that you checked because laws have changed recently it's worth enquiring again

Nope, 90% mortgage on a house slightly under the Dublin average.

Has anyone challenged EBS/AIB on their break fee and won?

deco72 · 11-07-2019 11:27am

BBMcQ wrote: »

AIB told us it would be 2500 approx to break, then when they dropped their STV rate, they said it would now cost over 5000. Apparently they use a formula no other bank uses, and continue to get away with it..... "Backing Brave"

Same here also, was hoping to switch mortgage avail of the lower rates and possibly get cashback offer as well if switched providers but AIB have that calculation and it wasnt worth switching. Even if we switched to the lower rates in AIB they still would have charged us a lot to do it. Cant wait til next year to switch now.

Summer8181 · 11-07-2019 3:11pm

Just off the phone to EBS, breakage fee is over €3600 and only valid for 5 days. How do they get away with this. I only want to pay lump sum. Have 18 months left on fixed term.

Mr E · 11-07-2019 3:35pm

I called EBS yesterday. 14 years into my mortgage, 1 year into a fixed term. Breakage fee was 0.

Tempted to move to AIB - my current account and CC are there, they pay 2k towards the legal fees and they have an option of a 6 month moratorium on mortgage payments.

My car is on its last legs (probably won't pass NCT in September) so I'm seriously considering a move - the moratorium would really help with the process of getting a new car.

Summer8181 · 11-07-2019 3:38pm

Mr E wrote: »

I called EBS yesterday. 14 years into my mortgage, 1 year into a fixed term. Breakage fee was 0.

Tempted to move to AIB - my current account and CC are there, they pay 2k towards the legal fees and they have an option of a 6 month moratorium on mortgage payments.

My car is on its last legs (probably won't pass NCT in September) so I'm seriously considering a move - the moratorium would really help with the process of getting a new car.

How was it free? Were you leaving or paying a lump sum?

Mortgage - low fee for breaking fixed rate

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