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breaking fixed term
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24-01-2018 12:23pm#1Hi can someone do this calculation for me, please? Looking to break fixed term
Taking from AIB
Worked Example: A = € 100,000 the amount of the premature payment or balance converted to another rate
U = 2 years (24 months) on basis you fixed for 5 years (60 months) and are now breaking out of fixed rate after 3 years (36 months) D = 2% on the basis you fixed at a 5 year rate of 5.25% and the fixed rate for the unexpired period (i.e. 24 months) is 3.25%. So, applying the formula A x U x
€ 100,000 x 24/12 x 2% = € 4,000
correct except for A = 86,500 left on mortgage
U= 18 months left on fixed term
The interest rates are the same
thanks0
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