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Paying money off fixed rate mortgage with Bank of Ireland.

  • 11-10-2016 1:40pm
    #1
    Galego
    Registered Users, Registered Users 2 Posts: 1,237 ✭✭✭


    Hi,

    I currently have a mortgage (165k) with bank of ireland with a 2 year inrtest rate coming to an end this April 17.
    I was cetrained that I was going to switch to AIB (or any other) for a lower variable rate as I want to make extra payments at the end of each year.

    Anyhow, I rang boi this morning out of curiosity to find out the penalty fee for paying off 30k on my loan. To my surprise they replied 41eur and 232eur.
    This sounds to me extremely cheap!!

    Is it always this "cheap"?

    Now I am reconsidering the switch to other bank if paying off amounts in a fixed works out this low.

    What do others think? Anyone else out there has to pay off amounts on a fixed rate? How much have you paid in penalty fees?


Comments

  • #2
    Uriel.
    Registered Users, Registered Users 2 Posts: 8,061 ✭✭✭Uriel.


    Galego wrote: »
    Hi,

    I currently have a mortgage (165k) with bank of ireland with a 2 year inrtest rate coming to an end this April 17.
    I was cetrained that I was going to switch to AIB (or any other) for a lower variable rate as I want to make extra payments at the end of each year.

    Anyhow, I rang boi this morning out of curiosity to find out the penalty fee for paying off 30k on my loan. To my surprise they replied 41eur and 232eur.
    This sounds to me extremely cheap!!

    Is it always this "cheap"?

    Now I am reconsidering the switch to other bank if paying off amounts in a fixed works out this low.

    What do others think? Anyone else out there has to pay off amounts on a fixed rate? How much have you paid in penalty fees?
    Most mortgage contracts have an early payment formula included in them which allows you to make an approximate calculation of any penalty you might face. You should have a look at your mortgage contract to see the formula and try to work it out yourself and see does it fit with what the bank just calculated for you


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