Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

fixed mortgage get out fees

Options
  • 04-01-2015 9:17pm
    #1
    mossleycnoc
    Registered Users Posts: 42 ✭


    Hi everyone,
    I think the bank has me stymied on this but I'd be interested in your opinions and at the very least it should be a warning to anyone tempted to fix mortgage rates for a long period of time.

    I (very foolishly) fixed my rates in 2007 when rates were going up. Unfortunately - I did it for ten years! At the time there were all kinds of stories about further rises and I was thinking of the interest rates of the early 90s- so at the time I believed I was being very smart.

    However, I'm now keen on selling the same house. I've long been aware that I'd get caught for a breakage of contract fee but last week my bank said this might be 30k but couldn't say how much exactly as they claim the fee changes on a day to day basis.

    As I said, I think they have me caught but I'd be interested in any opinions.
    Thanks in advance.


Comments

  • Options
    #2
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    I don't think it's fair to say they caught you out, this would have been clearly spelled out in the fixing documentation terms and conditions. It has always been the case that there is a penalty on breaking a fixed rate. Not to be supporting banks as such but you agreed to pay them x for a fixed period, a contract, now you want to break it, against your fixed rate for example the bank could have paid a saver a fixed rate for a number of years, a simplified example but they can't turn around to their saver and say tough luck we're breaking our deal cos the other guy broke his.

    Will you be buying again and getting another mortgage? Some banks refund the penalty if a new mortgage for equal or larger amount is taken out within a set length of time, six months usually.


  • Options
    #3
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    As mentioned you agreed to all this, they hardly caught you. Rates going up and you fixed for 10 years. No one forced this on you. However with any fixed rate agreement there is a penalty clause so check the documentation you got when you fixed the rate back in 2007. This will have it defined clearly how much you must pay.


Advertisement