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Re-Mortgage

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  • 03-02-2009 8:37pm
    #1
    mjmorrisroe
    Registered Users Posts: 68 ✭✭


    I'm debating changing mortgage provider but the get out fee on a 3yr fixed rate term is, wait for it... €4,996.00!! Do you know any banks who will take this fee on the chin for my business?? I doubt it very much!! The fixed terms ends in Oct regardless but I could be saving €400/month with interest rates the way they are. Your thoughts?


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    #2
    Brainz
    Registered Users Posts: 205 ✭✭Brainz


    the 4996 isnt that bad mate . . if you took the hit now by the end of the year you could recoup your losses but dont forget you will need to fork out for legal fees and val fee's . . .

    why dont you wait until october chances are the rates could be lower and it will be cheaper . . .


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    #3
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    What size id the mortgage and what rate is the fixed rate?


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    #4
    mjmorrisroe
    Registered Users Posts: 68 ✭✭mjmorrisroe


    Ogham wrote: »
    What size id the mortgage and what rate is the fixed rate?

    €368,000 @ 4.79%, Property value a tentative €460,000


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    #5
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    The best variable rate you could get is 3.25% (AIB)
    Based on a 25 year mortgage - the repayments would be 1792 - a saving of about 300 on your current repayments. (I worked it out over 25 years too) For 9 months this is a difference of about 2700 - so it would not be worth your while breaking the fix with a 5k penalty. There is a chance that variables will come down again though - which would increase the savings and would also probably mean a bigger penalty.
    Some lenders pay towards legal fees for switching (BOI Halifax and sometimes AIB)
    It's only 9 months - if it was me I would probably stick with it till October.


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    #6
    mjmorrisroe
    Registered Users Posts: 68 ✭✭mjmorrisroe


    Ogham wrote: »
    The best variable rate you could get is 3.25% (AIB)
    Based on a 25 year mortgage - the repayments would be 1792 - a saving of about 300 on your current repayments. (I worked it out over 25 years too) For 9 months this is a difference of about 2700 - so it would not be worth your while breaking the fix with a 5k penalty. There is a chance that variables will come down again though - which would increase the savings and would also probably mean a bigger penalty.
    Some lenders pay towards legal fees for switching (BOI Halifax and sometimes AIB)
    It's only 9 months - if it was me I would probably stick with it till October.

    Yeah, hopefully rate might drop again.. Cheers!


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    #7
    olaola
    Registered Users Posts: 4,139 ✭✭✭olaola


    Just a quick Q! Is that break-put penalty charged upfront. Or is it added to the principle of the mortgage? We're in a similar situation and our fixed is up in May of next year, which would mean a saving of approx 4k at 3.5%.
    We would probably stay with the same institution, so legal fees will not apply.


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