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Mortgage - low fee for breaking fixed rate

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Comments

  • #212
    Franz Von Peppercorn II
    Closed Accounts Posts: 2,398 ✭✭✭Franz Von Peppercorn II


    BOI is still high compared to the competition. I’m with them because it was easy a few years ago. Looking to leave now.


  • #213
    bugsyb4
    Registered Users Posts: 387 ✭✭bugsyb4


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

    Thanks for confirming either way breakage fee way too high to get on that rate, might try again next month and see what they quote.

    Although girl on phone told me that amount she quoted wouldn't be what we pay as by the time rates get changed could be a few days down the line so would be breakage fee for that day which who knows what will be then!


  • #214
    Thegalwayman
    Registered Users Posts: 746 ✭✭✭Thegalwayman


    bugsyb4 wrote: »
    Thanks for confirming either way breakage fee way too high to get on that rate, might try again next month and see what they quote.

    Although girl on phone told me that amount she quoted wouldn't be what we pay as by the time rates get changed could be a few days down the line so would be breakage fee for that day which who knows what will be then!

    Generally they send letter with breakage fee and valid for 7-10 days. Unfortunately UlsterBank take 2 weeks to do their post in my experience


  • #215
    bugsyb4
    Registered Users Posts: 387 ✭✭bugsyb4


    Thegalwayman wrote: »
    Generally they send letter with breakage fee and valid for 7-10 days. Unfortunately UlsterBank take 2 weeks to do their post in my experience

    Mmm so she was spoofing, was kind of the impression I got too!


  • #216
    brightkane
    Registered Users Posts: 2,716 ✭✭✭brightkane


    I am one year into a 5 yr fixed with PTSB 3.1%. When i called them I was told there was a breakage fee. Was i being spoofed or has anyone else in the same situation moved without any issues?


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  • #217
    99problems1
    Banned (with Prison Access) Posts: 391 ✭✭99problems1


    This is hardly a bargain alert?


  • #218
    b.gud
    Registered Users Posts: 4,786 ✭✭✭b.gud


    99problems1 wrote: »
    This is hardly a bargain alert?

    If you actually bothered to read the thread I think you'd find it is. As well as sharing advice on how to break out of your mortgage to get a better rate, thus saving you money, there has also been advice about overrpaying your mortgage. I for one was unaware of this and am now doing it and stand to save €20k in interest on my mortgage over it's lifetime and pay it off over 3 years early. I don't know about you but I'd call that a bargain


  • #219
    99problems1
    Banned (with Prison Access) Posts: 391 ✭✭99problems1


    b.gud wrote: »
    If you actually bothered to read the thread I think you'd find it is. As well as sharing advice on how to break out of your mortgage to get a better rate, thus saving you money, there has also been advice about overrpaying your mortgage. I for one was unaware of this and am now doing it and stand to save €20k in interest on my mortgage over it's lifetime and pay it off over 3 years early. I don't know about you but I'd call that a bargain

    Saying it's a bargain is like saying you own a ferrari and then someone telling you if you buy a mini you'll save loads on fuel. These are things that are known when purchasing something.

    I'm always amazed how people sign up to 30 year contracts and don't even know the t's & c's.


  • #220
    mrcheez
    Registered Users Posts: 13,615 ✭✭✭✭mrcheez


    99problems1 wrote: »
    I'm always amazed how people sign up to 30 year contracts and don't even know the t's & c's.

    sounds like you're pushing 100problems

    This is a thread about changing to a better rate mortgage and people are sharing the ins and outs and possible pitfalls. People are saving VAST QUANTITIES of money, hence bargain alert.


  • #221
    mrcheez
    Registered Users Posts: 13,615 ✭✭✭✭mrcheez


    Was there much in the ECB statement today that might be worth holding off for a while to see if better rates?


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  • #222
    Darc19
    Registered Users Posts: 3,817 ✭✭✭Darc19


    99problems1 wrote: »
    Saying it's a bargain is like saying you own a ferrari and then someone telling you if you buy a mini you'll save loads on fuel.

    I'd say it's like saying that if you buy the same Ferrari but with a different color leather from the Ferrari garage in the next town, you'll save thousands.

    Banks will never tell you how easy it is to switch rates or how cheap it is to get out of your fixed rate.


  • #223
    Tusky
    Registered Users Posts: 17,056 ✭✭✭✭Tusky


    mrcheez wrote: »
    Was there much in the ECB statement today that might be worth holding off for a while to see if better rates?

    Interested in this also!


  • #224
    Danzy
    Registered Users Posts: 13,222 ✭✭✭✭Danzy


    Money is going to be cheaper to borrow, so it should push prices up.

    Really loopy land economics now, deeply negative interest rates in the good times and 80bn a month in qe.

    What happens when there is a downturn, even a normal recession.

    What is worse, what if this does not work.


  • #225
    maggots_123
    Registered Users Posts: 28 ✭maggots_123


    masterboy123 wrote: »
    What was your old PTSB rate?
    I went ahead with PTSB this time given their cashback rewards.

    I had just ended a three year fixed term at 3.4% which automatically went to variable 4%. They wouldn't budge for me and when I seen this thread and AIB were offering 2.85%, it was a no brainer!


  • #226
    maggots_123
    Registered Users Posts: 28 ✭maggots_123


    BBMcQ wrote: »
    Was anyone else left massively out of pocket by switching?

    Only thing that caught me out was the cashback from AIB takes two months to kick in. I thought it was on drawdown like other banks, so I had to cover my solicitor fees myself instead of using the cashback as planned. So I'm short that money now until I get the cashback...


  • #227
    Q&A
    Registered Users Posts: 548 ✭✭✭Q&A


    Alligator Wine wrote: »
    Hi there, we're in the final stages of buying a house. We were issued with a loan offer from PTSB a few weeks back and met up with the solicitor to sign various documents. The thing is the rate we agreed to has since changed, from 3.2% for a 3-year-fixed to 2.9%. Is it too late to avail of this newer rate? If not what is involved in switching over? We went through a broker, but haven't got a response yet. Thanks

    If you've not drawn down your mortgage I would have thought it should be straight forward. Otherwise is there a cooling off period?

    Did the contract specify a rate or a fixed term? You might be put on the prevailing 3 year rate that applies on the day. I would contact the bank directly. Also is 2.9% currently on offer or is it available from a specific date - if you're drawing down before the specific date just stay variable.

    If you had to switch you could in theory switch on the same day as you draw down. The cost of switching should be zero given the base cost of the bank (draw down day) and current cost (switching day) would be the same. But why the back would make you jump through such hoops


  • #228
    deco72
    Registered Users Posts: 295 ✭✭deco72


    https://www.independent.ie/business/personal-finance/property-mortgages/aib-forced-to-ditch-high-breakage-fees-after-accusations-38523477.html


  • #229
    BBMcQ
    Registered Users Posts: 1,320 ✭✭✭BBMcQ


    deco72 wrote: »
    https://www.independent.ie/business/personal-finance/property-mortgages/aib-forced-to-ditch-high-breakage-fees-after-accusations-38523477.html

    Power to the people! Everyone who paid a AIB breakage fee over the last few years is surely due a refund here. I would love to know if there is also a case for AIB refunding the cost of delaying a switch by quoting a high breakage fee. This could really be pandora’s box if the ombudsman looks into it...


  • #230
    BBMcQ
    Registered Users Posts: 1,320 ✭✭✭BBMcQ


    https://www.askaboutmoney.com/attachments/colin-hunt-on-morning-ireland-24th-sept-adam-maguire-mp3.4065/

    AIB will write to all those who have been over-charged.


  • #231
    Salary Negotiator
    Closed Accounts Posts: 1,148 ✭✭✭Salary Negotiator


    Is there anyway to verify the fee quoted by the bank? BOI in my case.

    I know the formula but I don't know the 2 interest rates, R% and R1% but if I work backwards from the quote using the information I do have the difference between R and R1 is 0.72% which seems high to me.


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  • #232
    BigAl81
    Registered Users Posts: 1,115 ✭✭✭BigAl81


    Salary Negotiator wrote: »
    Is there anyway to verify the fee quoted by the bank? BOI in my case.

    I know the formula but I don't know the 2 interest rates, R% and R1% but if I work backwards from the quote using the information I do have the difference between R and R1 is 0.72% which seems high to me.

    Call them up and ask.

    I used the formula in my contract and worked it out at 3.5k.

    I rang my bank (PTSB) and asked what the break fee would be and was told zero!!

    Call and ask, it takes 5 minutes (then report back here!!).


  • #233
    Salary Negotiator
    Closed Accounts Posts: 1,148 ✭✭✭Salary Negotiator


    BigAl81 wrote: »
    Call them up and ask.

    I used the formula in my contract and worked it out at 3.5k.

    I rang my bank (PTSB) and asked what the break fee would be and was told zero!!

    Call and ask, it takes 5 minutes (then report back here!!).

    I did call so I have the breakage fee, it's just bigger than I expected.

    I then used the formula in my contract and worked backwards to work out the difference in interest rates, as these are the only unknowns, and I was surprised by the spread considering interest rates haven't changed since I took out my mortgage.


  • #234
    mrcheez
    Registered Users Posts: 13,615 ✭✭✭✭mrcheez


    My BOI 3.1% 3 Year Fixed rate is coming to an end soon.

    They've offered me a 2.9% 2 Year Fixed rate.

    Anything better out there to consider?


  • #235
    Millem
    Registered Users Posts: 7,729 ✭✭✭Millem


    mrcheez wrote: »
    My BOI 3.1% 3 Year Fixed rate is coming to an end soon.

    They've offered me a 2.9% 2 Year Fixed rate.

    Anything better out there to consider?

    Ulster bank 2.2% fixed for 5 years but you need to have a mortgage of €300,000 or more.


  • #236
    mrcheez
    Registered Users Posts: 13,615 ✭✭✭✭mrcheez


    Millem wrote: »
    Ulster bank 2.2% fixed for 5 years but you need to have a mortgage of €300,000 or more.

    ah.. mine is about 1/2 way through, so less than that.

    Any others worth considering for sub-300K ?


  • #237
    Cyrus
    Registered Users Posts: 19,646 ✭✭✭✭Cyrus


    ulster bank have plenty of rates around 2.5 / 2.3

    take a look.


  • #238
    stdidit
    Registered Users Posts: 553 ✭✭✭stdidit


    mrcheez wrote: »
    ah.. mine is about 1/2 way through, so less than that.

    Any others worth considering for sub-300K ?

    If I was you, I'd contact a mortgage broker, give them all your details and they'll lay out all your options.
    It may seem like hassle to change providers but a lot of them offer incentives to move and it could save you a lot of money in the long run - well worth spending some time investigating your options yourself, at the very least.


  • #239
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    AIB have a 5 year fixed @ 2.5%.

    What variable are you rolling on to?

    All the fixed rates seem very low to me, makes me think a variable drop is on the horizon this year or next.


  • #240
    browne_rob5
    Registered Users Posts: 466 ✭✭browne_rob5


    Cyrus wrote: »
    ulster bank have plenty of rates around 2.5 / 2.3

    take a look.

    KBC are 2.25% for 2 year fixed if your LTV is less than 60% and you have your current account with them. Will give you €3k for switching. Total cost of switching is around €1,250 so you can make a little profit.


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  • #241
    mrcheez
    Registered Users Posts: 13,615 ✭✭✭✭mrcheez


    browne_rob5 wrote: »
    KBC are 2.25% for 2 year fixed if your LTV is less than 60% and you have your current account with them. Will give you €3k for switching. Total cost of switching is around €1,250 so you can make a little profit.

    Interesting, and roughly how long does it take to switch over?

    Should I initiate the process about 1.5 months before the end of the fixed rate period, or just in latter 2 weeks?


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