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Is it Possible to Refix, Fixed term Mortgage while Fixed?

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  • 16-02-2011 2:32pm
    #1
    ronan45
    Registered Users Posts: 1,584 ✭✭✭


    I have another 2 years to go on my 5 year fixed term mortgage. As we know the fixed rates are starting to increase allready by the banks. Is it possible to refix while in the middle of your fixed term? Or do you have to wait untill the current one ends? I have the feeling when it ends ie in 1.6 years the Fixed rates will have Shot up ! :(


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    #2
    Kennie1
    Registered Users Posts: 302 ✭✭Kennie1


    Simple answer...NO!

    You would have to pay breakage fees for your existing fixed rate which would cost you a fortune!


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    #3
    ronan45
    Registered Users Posts: 1,584 ✭✭✭ronan45


    Kennie1 wrote: »
    Simple answer...NO!

    You would have to pay breakage fees for your existing fixed rate which would cost you a fortune!


    Bugger, Ok cheers Kenny

    GULP


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    #4
    uberwolf
    Registered Users Posts: 7,580 ✭✭✭uberwolf


    yes it can be done. The cost is the issue. Break fee's exist because the bank has entered into a swap to hedge the interest rate they have offered you.

    If the equivalent rate has risen since then, they are in the money on the deal should you break it and so a break fee shouldn't apply. Even if they were out of money, they may be able to spread the cost over the length of the new agreement


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