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Breaking a Fixed Rate Mortgage

  • 13-06-2018 9:44am
    #1
    Alkers
    Registered Users, Registered Users 2 Posts: 6,856 ✭✭✭


    Are there penalties attached to moving mortgage provider if you have a fixed rate load?
    We are considering fixing for 3/5 years with EBS @ 3% (std. variable for them is 3.7%).
    If, midway through the fixed period, we wanted to move to another bank - is there a way to find out what the penalty would be?
    We're about 18 months into a 35 year mortgage!


Comments

  • #2
    Avatar MIA
    Closed Accounts Posts: 6,750 ✭✭✭Avatar MIA


    I think it's usually 6 month's interest that's charged to the account to break.

    In fairness, if there wasn't there'd be no such thing as fixed rates


  • #3
    Alkers
    Registered Users, Registered Users 2 Posts: 6,856 ✭✭✭Alkers


    The letter we have from EBS says that an early redemption charge is payable where:
    • The capital payment or full repayment is made to the loan,
    • If the loan is converted to a variable rate / tracker rate,
    • If the loan is converted to another fixed rate.

    I guess I hadn't copped that if I moved to another provider, then in terms of my bank the full repayment would be made to the loan by the new mortgage provider.


  • #4
    Avatar MIA
    Closed Accounts Posts: 6,750 ✭✭✭Avatar MIA


    Simona1986 wrote: »
    The letter we have from EBS says that an early redemption charge is payable where:
    • The capital payment or full repayment is made to the loan,
    • If the loan is converted to a variable rate / tracker rate,
    • If the loan is converted to another fixed rate.

    I guess I hadn't copped that if I moved to another provider, then in terms of my bank the full repayment would be made to the loan by the new mortgage provider.


    Er, of course. How else did you think it would work?


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