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12-04-2019, 11:15   #91
mrcheez
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Originally Posted by Klonker View Post
You can pay off lump sum without ending your contract and it's done at a proportionate level. For example, if your outstanding mortgage is €200k and they give you a quote of €1,000 to break the fixed term, if for example you didn't fully break and decided to just pay off €50k lump some it would only cost €250. Might be a better option if your main motivation is to make a lump sum payment and if the difference in the interest rates isn't much.
Well it's probably better to drop down to 2.9% from 3.1% anyway if I'm going to have to pay a breaking fee to pay in a lump sum.

I'm not allowed to pay in a lump sum on a fixed term without breaking it.
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12-04-2019, 23:07   #92
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Quote:
Originally Posted by mrcheez
Well it's probably better to drop down to 2.9% from 3.1% anyway if I'm going to have to pay a breaking fee to pay in a lump sum. I'm not allowed to pay in a lump sum on a fixed term without breaking it.
Did you see my example above though? Would only cost 250 to pay the lump sum off but 1000 if you wanted to change rates as when paying the lump sum it's viewed as you're only breaking 50k of the mortgage but if changing rates you are breaking the complete 200k mortgage so will have to pay 4 times more of a break fee.
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13-04-2019, 09:04   #93
mrcheez
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Did you see my example above though? Would only cost 250 to pay the lump sum off but 1000 if you wanted to change rates as when paying the lump sum it's viewed as you're only breaking 50k of the mortgage but if changing rates you are breaking the complete 200k mortgage so will have to pay 4 times more of a break fee.
right, I'll be checking my decisions with my financial adviser as well just to be extra sure before committing to anything.
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14-04-2019, 00:28   #94
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This is slightly off topic as its not about changing from one fixed to another - but for those reading this and havent acted in the last few years; definitely ring the bank.

For example - we are 5 years into a 30 year small mortgage and were on variable 4.5 % and rang and changed to a 5 year fixed. Dropped down to 3% and by 70 euro a month. This gives us time to review and plan our next move for when the fixed term is up.
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15-04-2019, 10:26   #95
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Got the letter this morning as I was running out the door.

Only had a quick check

It didn't quote a break fee and had some initial blurb about possible charges for breaking fixed rate and refer to section D ( section D had some formula they use for calculating the fee but no actual fee (that I could see)

It had a number of rate options listed including the 2 year 2.9% and also a 3 year 3.0%

I may be better off waiting to change when my fixed rate ends.

Even thought they suggest "You can do this all online, there’s no need to call or visit a branch:"

I'm thinking this may require a PHONE call after all as suggested by others in order to get the calculated break fee figure from them.



Rang this morning. I misjudged my fixed term and have longer left than I thought .. my break fee was €357



I think I will wait until closer to the end of my current 3.0% fix before jumping. Hopefully the 2.9% is still available then and the break fee should come way down.
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15-04-2019, 14:49   #96
Prezatch
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Just to note, AIB lowered their fixed interest rates last Wednesday and introduced a 10 year fixed rate. A sign of potential lower fixed rates coming from competitors soon or at least more extensive options including longer terms. Compared to Europe we are still well behind the curve
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15-04-2019, 15:19   #97
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Speaking of AIB, the fact you can get a 3 year fixed for 2.85% and a 10 year fixed for 3.3% kinda points to interest rates falling sometime soon?
Can't see why they'd off 2.85% if rates are gonna go up.
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19-04-2019, 21:27   #98
Thegalwayman
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21 yrs left on Ulster Bank 3.2% fixed til March 2021 530 breakage fee and option of 4 yrs at 2.6%. Saves 60odd a month. Pity UB are so slow to do anything requested breakage fee on 11th April received in todays post and it's valid until 26th April but I have to get rate change request form from them which can't request until 23rd with the bank holiday and then I won't receive it til May so presumably will be on variable rate of 4.3% for a few weeks
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19-04-2019, 21:39   #99
hatchman
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21 yrs left on Ulster Bank 3.2% fixed til March 2021 530 breakage fee and option of 4 yrs at 2.6%. Saves 60odd a month. Pity UB are so slow to do anything requested breakage fee on 11th April received in todays post and it's valid until 26th April but I have to get rate change request form from them which can't request until 23rd with the bank holiday and then I won't receive it til May so presumably will be on variable rate of 4.3% for a few weeks

I switched from 4 year fixed to another four year fixed in Jan with UB and they said they never got request which was done online what's new with UB online ! But I raised a stink and it was all refunded. So if I were u I would keep calling and demanding !
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24-04-2019, 14:12   #100
Cona
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Question for those who have moved their mortgage to another bank....Do you need to provide all the same documentation to the new bank as you did when originally applying for mortgage? i.e 6 months bank statements, salary certs etc?
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24-04-2019, 15:23   #101
grahamor
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Question for those who have moved their mortgage to another bank....Do you need to provide all the same documentation to the new bank as you did when originally applying for mortgage? i.e 6 months bank statements, salary certs etc?
Yes, it's a brand new mortgage from the banks perspective.
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25-04-2019, 15:13   #102
ando
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Hi, I'm on 3.4% fixed with PTSB. Rang them there as my LTV has gone down to 60% since initially taking it out 3 years ago but they told me there is no point attempting to change as the lowest we can offer you is 3.7% .... Anyone else get a point blank refusal from the bank?
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25-04-2019, 17:54   #103
bazz26
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I rang my current bank (BOI) about 2 weeks ago being around 12 months into a 2 year fixed rate of 3.2%. They quoted me €194 to break my current fixed rate and initially offered a new fixed rate of 2.9% based on the LTV of 60-80% which would save me about €30 a month. I told them I was shopping around and willing to move if the sums make it worthwhile. They came back a day later with a revised fixed rate of 2.8% but couldn't offer me any cash back offers they would offer new customers. I am happy to sit tight for the moment as I heard that some banks might be revising their interest rates soon enough which usually means the rest will follow.
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25-04-2019, 17:55   #104
stdidit
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Hi, I'm on 3.4% fixed with PTSB. Rang them there as my LTV has gone down to 60% since initially taking it out 3 years ago but they told me there is no point attempting to change as the lowest we can offer you is 3.7% .... Anyone else get a point blank refusal from the bank?
There isn't much point if the best rate they can offer you is higher than what you're on.

PTSB only offer good rates to new customers.

In your case your better off finding out how much it will cost to break out of the fixed rate and then move to another provider, assuming the sums match up and it's worthwhile..
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25-04-2019, 21:59   #105
Thegalwayman
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Regarding obtaining better rates by advising of lower LTV band does the customer have to bear the cost of valuation or do they generally just do their own search on comparable properties.
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