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04-04-2019, 17:47   #16
Klonker
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Originally Posted by VW 1
I switched from EBS to BOI to get 2% cash back, plus an extra 1% at the end of a 3 year fixed period. Solicitor fees plus VAT were 950 as well as 80 quid to pay the valuation agent. Safe to say that it was worth the effort of the forms and document gathering.

pretty sure the 1% is after 5 years with BOI.
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04-04-2019, 18:10   #17
cruizer101
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Well that's a separate concern. That's got nothing to do with the cost of breaking out of a fixed rate mortgage.
Its not separate at all, if moving bank it has to be taken into account. Generally the bigger saving will be by moving bank, and any cashback type offers will require moving bank also.
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04-04-2019, 18:40   #18
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Its not separate at all, if moving bank it has to be taken into account. Generally the bigger saving will be by moving bank, and any cashback type offers will require moving bank also.
That's a total cost question. And every solicitor will charge differently.

This thread is about the fee banks charge for breaking fixed interest mortgages.

Solicitor would charge the same regardless of whether you switched from a variable rate or broke a fixed rate.

So while it's relevant to total cost of switching. It's not relevant to this thread.
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04-04-2019, 18:43   #19
cojomo2
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I'm with KBC and it cost nothing to break out of the fixed rate.
So am I..I was quouted €240 this week. That was to break a fixed mortgage of 145k with 18 months remaining. When were you told it would be free?
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04-04-2019, 18:45   #20
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So am I..I was quouted €240 this week. That was to break a fixed mortgage of 145k with 18 months remaining. When were you told it would be free?
How did they calculate the 240?

Sounds excessive
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04-04-2019, 18:46   #21
cojomo2
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How did they calculate the 240?

Sounds excessive
Using some formula that they all use based on guidance from the central bank I believe.
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04-04-2019, 18:53   #22
cruizer101
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CPCC have a good mortgage comparison tool for checking different rates.
Although it doesn't detail cashback offers.
Also good to check what your ltv is, as there are better rates for lower ltv,
generally the change of bands are 80%, 60%, 50%,
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04-04-2019, 19:11   #23
cruizer101
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Originally Posted by lawred2 View Post

This thread is about the fee banks charge for breaking fixed interest mortgages.
The thread is about the savings that can be made by breaking a fixed rate mortgage, in particular the fact that breaking fees are a lot less than many think.

However the other costs are not irrelevant. That's like saying alcohol is cheap in another country and the cost of getting it here is irrelevant.

For overall savings, which is what people are going to be interested in, the whole picture of all costs is important
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04-04-2019, 19:15   #24
The_B_Man
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I'm with BoI as well.
If I do this, do I have to go thru the whole mortgage application process again? Bank statements and all the rest?
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04-04-2019, 19:29   #25
lawred2
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Originally Posted by cruizer101 View Post
The thread is about the savings that can be made by breaking a fixed rate mortgage, in particular the fact that breaking fees are a lot less than many think.

However the other costs are not irrelevant. That's like saying alcohol is cheap in another country and the cost of getting it here is irrelevant.

For overall savings, which is what people are going to be interested in, the whole picture of all costs is important
Mortgage - low fee for breaking fixed rate
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04-04-2019, 19:35   #26
mayota
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I'm with BoI as well.
If I do this, do I have to go thru the whole mortgage application process again? Bank statements and all the rest?
No, not if you’re staying with BOI.
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04-04-2019, 23:19   #27
flugel
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This is how I understand it

Under a fixed rate contract but break it to avail of newer lower rates to stay with same mortgage provider, you have a breakage fee to pay. This fee changes and is recalculated every day

If you break within a fixed rate contract to switch mortgage providers you have the above breakage fee plus you also have a redemption fee to pay

Ive been told by my mortgage provider, bank of Ireland, that the breakage fee can be as low a zero

I don't know how the redemption fee is calculated and if that can also potentially be as low as zero
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05-04-2019, 00:14   #28
bazz26
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To my knowledge a redemption fee is when you are settling the mortgage in full or moving to another lender before your current fixed term finishes. I don't think that applies where you are just moving to a different interest rate and staying with the same lender.

Another tip for paying less interest over the term of the mortgage is to look at paying a little extra every month off the capital amount borrowed, on top of your normal mortgage payment. Even if your in a fixed rate term you can still pay upto 10% extra of your monthly repayment without penalty. With a variable rate you can pay as much off as you want or can afford. As mortgage interest is normally calculated on a daily basis, paying a small amount every month off the amount borrowed actually reduces the amount of interest you are paying over the entire term of the mortgage.

So for example with the OP, that €50 per month saved by switching to a lower interest rate could be put towards reducing the amount borrowed every month instead meaning less interest paid over the entire term of the mortgage. Doesn't seem like much but over time it does add up.
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05-04-2019, 00:21   #29
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Quote:
Originally Posted by cojomo2 View Post
So am I..I was quouted €240 this week. That was to break a fixed mortgage of 145k with 18 months remaining. When were you told it would be free?



Am I reading that right? You've got a €145,000 mortgage, and 18 months left on it (ie: about €8,000 per month?).


Surely, if you're doing such massive payments, you wouldn't care what the interest rate was, because you'll be paying a trivial amount anyway, at the speed with which you'd be blowing through the mortgage?
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05-04-2019, 00:24   #30
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I assume the original amount borrowed was 145k rather than the amount owing with 18 months to go.
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