Mortgage rates

iluvfatfrogs

dubrov wrote: »

You can break a fixed rate for a breakage fee.
The breakage fee is mostly based on the banks rate of funding at the time you took out the loan to their current rate of funding. It does not matter what their current fixed rate is.

The cost of funding for Irish banks has decreased a lot over the last few years so I suspect there is little/no breakage fee for most people.

I have said before in diifferent thread, AIB are charging me over €1,500 for breaking a 3 year fixed term with 16 months left.

I am going to ask again once I get under 12 months.

Spider Rico

Spider Rico wrote: »

Only have the option to fix for 5 years at ptsb at 4.2% so still don’t see a reason to stay for that. Though fully expect interest rates to have gone up a lot by the time I shop around again in 5 years time ðŸ™

Apologies ......... what I mean is.

Let's say your current mortgage is €1000/month.
move to BOI and it's now €890/month as the interest rate is lower.

I was suggesting that you consider making your payment with BOI what it currently is, so you are overpaying a tad as well as benefitting from the lower rate.

when the time comes to shop around again you'll be better off

Mantis Toboggan

Augeo wrote: »

Apologies ......... what I mean is.

Let's say your current mortgage is €1000/month.
move to BOI and it's now €890/month as the interest rate is lower.

I was suggesting that you consider making your payment with BOI what it currently is, so you are overpaying a tad as well as benefitting from the lower rate.

when the time comes to shop around again you'll be better off

You can only overpay by 10% on a fixed rate mortgage.

Tyson Fury

Tyson Fury wrote: »

You can only overpay by 10% on a fixed rate mortgage.

You can agree a monthly payment that includes an agreed over payment when moving to the fixed rate. You can then overpay up to 10% of that agreed amount going forward if it tickle your fancy

Spider Rico

Tyson Fury wrote: »

Augeo wrote: »

Apologies ......... what I mean is.

Let's say your current mortgage is €1000/month.
move to BOI and it's now €890/month as the interest rate is lower.

I was suggesting that you consider making your payment with BOI what it currently is, so you are overpaying a tad as well as benefitting from the lower rate.

when the time comes to shop around again you'll be better off

You can only overpay by 10% on a fixed rate mortgage.

Ah yes. We are keeping the payments the same and reducing term by 4 years

Irish_rat

dubrov wrote: »

You can break a fixed rate for a breakage fee.
The breakage fee is mostly based on the banks rate of funding at the time you took out the loan to their current rate of funding. It does not matter what their current fixed rate is.

The cost of funding for Irish banks has decreased a lot over the last few years so I suspect there is little/no breakage fee for most people.

Thanks I'll definitely check it out with them.

poolfandar

Irish_rat wrote: »

Thanks I'll definitely check it out with them.

Just broke out of a 7 year fixed with Ulster Bank ( 5 years left ) and went on a 5 year fixed (3.7% vs 2.95%). They Initially wanted €3000 but ended up being 0 in line with the new European Central Bank directive!

Dublingirl80

That's interesting about fixed rates. Part of me would be reluctant to sign one for too long but it's great if they're not charging. I was told it would depend on the day the change goes through and so I'd have to take a risk and break out of it not knowing the charge. I think I may call again. I wish the banks would just be more in line with each other, switching is just expensive and a hassle though I suppose with ulster bank offering legal fees it's not really.

zl1whqvjs75cdy

Is there much legal leg work involved? Or hammer it all off to the solicitor and let them at it?

Cyrus

Dublingirl80 wrote: »

switching is just expensive and a hassle though I suppose with ulster bank offering legal fees it's not really.

it really isnt and most cover the legal fees