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Ending my fixed rate mortgage early

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  • 02-07-2015 10:43pm
    #1
    catbro3
    Registered Users Posts: 31 ✭


    Hi all,

    I bought my house for 190k 2 years ago and fixed for 3 years at 4.69%. I recently got my house revalued and its now worth 270k (happy days). So I rang BOI and asked them could I get out of my fixed rate a year early and go on the the lower rate of 3.6%(3.9%APR) for 2 years fixed (they wont give me a year fixed!!). They quoted me €115 to exit my current fixed rate mortgage and go to the new one. Does this seem correct? Everyone keeps telling me that its too low. Its only verbal and I don't trust them to tell the full truth. Is this repayment every month for what would have been the duration of the first fixed rate? or a once off payment?

    I'm confused and don't know what to trust as that figure isn't written in the new contract I have to sign and is subject to change. Also they told me that they only have one variable interest rate and that's 4.5%. That seems a bit crazy. I was going to go to a variable rate and wait and see if they come down before fixing for another 2 years but at that rate its not worth my while!

    Any advise is appreciated.
    Tagged:


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    #2
    Aka Ishur
    Registered Users Posts: 740 ✭✭✭Aka Ishur


    catbro3 wrote: »
    Hi all,

    I bought my house for 190k 2 years ago and fixed for 3 years at 4.69%. I recently got my house revalued and its now worth 270k (happy days). So I rang BOI and asked them could I get out of my fixed rate a year early and go on the the lower rate of 3.6%(3.9%APR) for 2 years fixed (they wont give me a year fixed!!). They quoted me €115 to exit my current fixed rate mortgage and go to the new one. Does this seem correct? Everyone keeps telling me that its too low. Its only verbal and I don't trust them to tell the full truth. Is this repayment every month for what would have been the duration of the first fixed rate? or a once off payment?

    I'm confused and don't know what to trust as that figure isn't written in the new contract I have to sign and is subject to change. Also they told me that they only have one variable interest rate and that's 4.5%. That seems a bit crazy. I was going to go to a variable rate and wait and see if they come down before fixing for another 2 years but at that rate its not worth my while!

    Any advise is appreciated.

    No one can tell you for sure except the bank so just ask them to clarify. They are not trying to catch you out.


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    #3
    ct5amr2ig1nfhp
    Closed Accounts Posts: 5,019 ✭✭✭ct5amr2ig1nfhp


    For 115 EUR I'd jump at the chance! That seems very low but as poster above has said, you need to contact your branch. Why not ask the same agent for that cost in writing?


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    #4
    catbro3
    Registered Users Posts: 31 ✭catbro3


    I rang them and they said yes it cost €115. And it would be added as a fee to the end of my account and come out in the last payment in 2043😵😵. Still seems too good to be true but sent the form off to get the new interest rate ASAP. Thanks for the replies.


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    #5
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    Get it in writing from them so there is no confusion when you break out of your fixed rate.


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    #6
    ct5amr2ig1nfhp
    Closed Accounts Posts: 5,019 ✭✭✭ct5amr2ig1nfhp


    Are you then paying interest on the 115 euro until 2043? If so, while not significant, it'll be about 500 EUR by 2043 if interest rates stay about the same.


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    #7
    catbro3
    Registered Users Posts: 31 ✭catbro3


    Nope they said it was interest free. I presume I'll get it all in writing once it's all signed and sealed. If not I'll be ringing them every day.


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    #8
    catbro3
    Registered Users Posts: 31 ✭catbro3


    Just a quick update, the €114 but out wasn't interest free!! They gave me the wrong information. They are investigating and getting back to me. I won't be waiting by the fone. But I'm going to overpay (up to 10% of my repayments without penalty)for a few months which should negate the interest.


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