Mortgage - low fee for breaking fixed rate

th283

givyjoe wrote: »

Thats some saving/reduction in term. Do you mind me asking what the term/mortgage was initially?

I’ve 28 years left in the mortgage, if you google bank of Ireland overpayment calculator it’ll show you how much you can save

deco72

Just in the process of switching over to PTSB, able to reduce term by 5yrs, keep same repayment amount and get cash back of approx €6k once drawn down at 3yrs fixed. Can also avail of another 2% per month if I set up one and pay the mortgage through one of their explore accounts.

Does anyone know you can do a Moratorium straight away when doing a switcher mortgage? I assume you can as its essentially same as a first mortgage.

chases0102

Ha, I rang BOI yesterday...quoted me over 10 grand!!

Hardtochoose

chases0102 wrote: »

Ha, I rang BOI yesterday...quoted me over 10 grand!!

What length of fixed term are you on? I was quoted €780 last month with 14 months remaining on a 2 year fixed term. Would imagine it’s a bit lower now with another month gone and will be lower again hopefully in a months time with an ECB rate cut

chases0102

To be honest, I half expected such a figure....I'm only just over a year into a 5 year fixed.

bugsyb4

About a year left on a 3 year fixed term 3% and got quoted €500 there as breakage fee.

Best they could offer me was 2.9% over 1 or 2 years. I mentioned about 2.8% but no budging, has anyone got that rate recently?

This was with BOI not worth it really as only be paying €15 less a month on mortgage repayments.

BBMcQ

Was anyone else left massively out of pocket by switching? We’ve just been asked for over 3 grand by the solicitor (separate to his fees) for the difference between the mortgage redeemed from the old provider and the mortgage given by the new provider. Came as a massive shock. I understand it’s accrued interest not paid yet to the old provider but our mortgage payment was only 1500 a month. New mortgage is 1300 a month.

It’s taken the wind right out of our sails and made us wonder if we’ve made a huge mistake in switching!

Cyrus

BBMcQ wrote: »

Was anyone else left massively out of pocket by switching? We’ve just been asked for over 3 grand by the solicitor (separate to his fees) for the difference between the mortgage redeemed from the old provider and the mortgage given by the new provider. Came as a massive shock. I understand it’s accrued interest not paid yet to the old provider but our mortgage payment was only 1500 a month. New mortgage is 1300 a month.

It’s taken the wind right out of our sails and made us wonder if we’ve made a huge mistake in switching!

sounds like a breakage fee, was it a fixed mortgage?

BBMcQ

Cyrus wrote: »

sounds like a breakage fee, was it a fixed mortgage?

Oh I know about that old chestnut... don’t mention the war.

Think I worked it out. When we requested the mortgage amount off the new bank, we didn’t include the accrued interest but not yet charged. For our mortgage this is 2700 per quarter! Does anyone know if this is paid in arrears or in advance?

So basically when settling the balance of new mortgage versus old, we now have to pay a quarters interest that isn’t rolled into the new mortgage. We’ve effectively and inadvertently paid an extra month off our mortgage interest that we didn’t plan to! Not good for cash flow.

Akula

bugsyb4 wrote: »

Best they could offer me was 2.9% over 1 or 2 years. I mentioned about 2.8% but no budging, has anyone got that rate recently?

Got 2.8% offered this week for 1 or 2 years. They had to go back to the pricing desk though.

Franz Von Peppercorn II

BOI is still high compared to the competition. I’m with them because it was easy a few years ago. Looking to leave now.

bugsyb4

Akula wrote: »

Got 2.8% offered this week for 1 or 2 years. They had to go back to the pricing desk though.

Thanks for confirming either way breakage fee way too high to get on that rate, might try again next month and see what they quote.

Although girl on phone told me that amount she quoted wouldn't be what we pay as by the time rates get changed could be a few days down the line so would be breakage fee for that day which who knows what will be then!

Thegalwayman

bugsyb4 wrote: »

Thanks for confirming either way breakage fee way too high to get on that rate, might try again next month and see what they quote.

Although girl on phone told me that amount she quoted wouldn't be what we pay as by the time rates get changed could be a few days down the line so would be breakage fee for that day which who knows what will be then!

Generally they send letter with breakage fee and valid for 7-10 days. Unfortunately UlsterBank take 2 weeks to do their post in my experience

bugsyb4

Thegalwayman wrote: »

Generally they send letter with breakage fee and valid for 7-10 days. Unfortunately UlsterBank take 2 weeks to do their post in my experience

Mmm so she was spoofing, was kind of the impression I got too!

brightkane

I am one year into a 5 yr fixed with PTSB 3.1%. When i called them I was told there was a breakage fee. Was i being spoofed or has anyone else in the same situation moved without any issues?

99problems1

This is hardly a bargain alert?

b.gud

99problems1 wrote: »

This is hardly a bargain alert?

If you actually bothered to read the thread I think you'd find it is. As well as sharing advice on how to break out of your mortgage to get a better rate, thus saving you money, there has also been advice about overrpaying your mortgage. I for one was unaware of this and am now doing it and stand to save €20k in interest on my mortgage over it's lifetime and pay it off over 3 years early. I don't know about you but I'd call that a bargain

99problems1

b.gud wrote: »

If you actually bothered to read the thread I think you'd find it is. As well as sharing advice on how to break out of your mortgage to get a better rate, thus saving you money, there has also been advice about overrpaying your mortgage. I for one was unaware of this and am now doing it and stand to save €20k in interest on my mortgage over it's lifetime and pay it off over 3 years early. I don't know about you but I'd call that a bargain

Saying it's a bargain is like saying you own a ferrari and then someone telling you if you buy a mini you'll save loads on fuel. These are things that are known when purchasing something.

I'm always amazed how people sign up to 30 year contracts and don't even know the t's & c's.

mrcheez

99problems1 wrote: »

I'm always amazed how people sign up to 30 year contracts and don't even know the t's & c's.

sounds like you're pushing 100problems

This is a thread about changing to a better rate mortgage and people are sharing the ins and outs and possible pitfalls. People are saving VAST QUANTITIES of money, hence bargain alert.

mrcheez

Was there much in the ECB statement today that might be worth holding off for a while to see if better rates?

Darc19

99problems1 wrote: »

Saying it's a bargain is like saying you own a ferrari and then someone telling you if you buy a mini you'll save loads on fuel.

I'd say it's like saying that if you buy the same Ferrari but with a different color leather from the Ferrari garage in the next town, you'll save thousands.

Banks will never tell you how easy it is to switch rates or how cheap it is to get out of your fixed rate.

Tusky

mrcheez wrote: »

Was there much in the ECB statement today that might be worth holding off for a while to see if better rates?

Interested in this also!

Danzy

Money is going to be cheaper to borrow, so it should push prices up.

Really loopy land economics now, deeply negative interest rates in the good times and 80bn a month in qe.

What happens when there is a downturn, even a normal recession.

What is worse, what if this does not work.

maggots_123

masterboy123 wrote: »

What was your old PTSB rate?
I went ahead with PTSB this time given their cashback rewards.

I had just ended a three year fixed term at 3.4% which automatically went to variable 4%. They wouldn't budge for me and when I seen this thread and AIB were offering 2.85%, it was a no brainer!

maggots_123

BBMcQ wrote: »

Was anyone else left massively out of pocket by switching?

Only thing that caught me out was the cashback from AIB takes two months to kick in. I thought it was on drawdown like other banks, so I had to cover my solicitor fees myself instead of using the cashback as planned. So I'm short that money now until I get the cashback...

Q&A

Alligator Wine wrote: »

Hi there, we're in the final stages of buying a house. We were issued with a loan offer from PTSB a few weeks back and met up with the solicitor to sign various documents. The thing is the rate we agreed to has since changed, from 3.2% for a 3-year-fixed to 2.9%. Is it too late to avail of this newer rate? If not what is involved in switching over? We went through a broker, but haven't got a response yet. Thanks

If you've not drawn down your mortgage I would have thought it should be straight forward. Otherwise is there a cooling off period?

Did the contract specify a rate or a fixed term? You might be put on the prevailing 3 year rate that applies on the day. I would contact the bank directly. Also is 2.9% currently on offer or is it available from a specific date - if you're drawing down before the specific date just stay variable.

If you had to switch you could in theory switch on the same day as you draw down. The cost of switching should be zero given the base cost of the bank (draw down day) and current cost (switching day) would be the same. But why the back would make you jump through such hoops

deco72

https://www.independent.ie/business/personal-finance/property-mortgages/aib-forced-to-ditch-high-breakage-fees-after-accusations-38523477.html

BBMcQ

deco72 wrote: »

https://www.independent.ie/business/personal-finance/property-mortgages/aib-forced-to-ditch-high-breakage-fees-after-accusations-38523477.html

Power to the people! Everyone who paid a AIB breakage fee over the last few years is surely due a refund here. I would love to know if there is also a case for AIB refunding the cost of delaying a switch by quoting a high breakage fee. This could really be pandora’s box if the ombudsman looks into it...

BBMcQ

https://www.askaboutmoney.com/attachments/colin-hunt-on-morning-ireland-24th-sept-adam-maguire-mp3.4065/

AIB will write to all those who have been over-charged.

Salary Negotiator

Is there anyway to verify the fee quoted by the bank? BOI in my case.

I know the formula but I don't know the 2 interest rates, R% and R1% but if I work backwards from the quote using the information I do have the difference between R and R1 is 0.72% which seems high to me.

BigAl81

Salary Negotiator wrote: »

Is there anyway to verify the fee quoted by the bank? BOI in my case.

I know the formula but I don't know the 2 interest rates, R% and R1% but if I work backwards from the quote using the information I do have the difference between R and R1 is 0.72% which seems high to me.

Call them up and ask.

I used the formula in my contract and worked it out at 3.5k.

I rang my bank (PTSB) and asked what the break fee would be and was told zero!!

Call and ask, it takes 5 minutes (then report back here!!).

Salary Negotiator

BigAl81 wrote: »

Call them up and ask.

I used the formula in my contract and worked it out at 3.5k.

I rang my bank (PTSB) and asked what the break fee would be and was told zero!!

Call and ask, it takes 5 minutes (then report back here!!).

I did call so I have the breakage fee, it's just bigger than I expected.

I then used the formula in my contract and worked backwards to work out the difference in interest rates, as these are the only unknowns, and I was surprised by the spread considering interest rates haven't changed since I took out my mortgage.

mrcheez

My BOI 3.1% 3 Year Fixed rate is coming to an end soon.

They've offered me a 2.9% 2 Year Fixed rate.

Anything better out there to consider?

Millem

mrcheez wrote: »

My BOI 3.1% 3 Year Fixed rate is coming to an end soon.

They've offered me a 2.9% 2 Year Fixed rate.

Anything better out there to consider?

Ulster bank 2.2% fixed for 5 years but you need to have a mortgage of €300,000 or more.

mrcheez

Millem wrote: »

Ulster bank 2.2% fixed for 5 years but you need to have a mortgage of €300,000 or more.

ah.. mine is about 1/2 way through, so less than that.

Any others worth considering for sub-300K ?

Cyrus

ulster bank have plenty of rates around 2.5 / 2.3

take a look.

stdidit

mrcheez wrote: »

ah.. mine is about 1/2 way through, so less than that.

Any others worth considering for sub-300K ?

If I was you, I'd contact a mortgage broker, give them all your details and they'll lay out all your options.
It may seem like hassle to change providers but a lot of them offer incentives to move and it could save you a lot of money in the long run - well worth spending some time investigating your options yourself, at the very least.

pwurple

AIB have a 5 year fixed @ 2.5%.

What variable are you rolling on to?

All the fixed rates seem very low to me, makes me think a variable drop is on the horizon this year or next.

browne_rob5

Cyrus wrote: »

ulster bank have plenty of rates around 2.5 / 2.3

take a look.

KBC are 2.25% for 2 year fixed if your LTV is less than 60% and you have your current account with them. Will give you €3k for switching. Total cost of switching is around €1,250 so you can make a little profit.

mrcheez

browne_rob5 wrote: »

KBC are 2.25% for 2 year fixed if your LTV is less than 60% and you have your current account with them. Will give you €3k for switching. Total cost of switching is around €1,250 so you can make a little profit.

Interesting, and roughly how long does it take to switch over?

Should I initiate the process about 1.5 months before the end of the fixed rate period, or just in latter 2 weeks?

browne_rob5

mrcheez wrote: »

Interesting, and roughly how long does it take to switch over?

Should I initiate the process about 1.5 months before the end of the fixed rate period, or just in latter 2 weeks?

It took me 6 weeks but I was on holidays for 2 weeks during this and did not follow up on queries. Should take 4 weeks I'd day. Its a bit of work but obviously worth it in the long run if making a good saving. I would initiate 2 months before to make sure everything is in order for draw down when your fixed rate ends.

cruizer101

Go to https://www.ccpc.ie/consumers/financial-comparisons/mortgage-comparisons/
It will lay out all the different rates for whatever LTV you are.
It won't show cashback offers however so you will have to take those into account.

aomh

Millem wrote:

Ulster bank 2.2% fixed for 5 years but you need to have a mortgage of €300,000 or more.

Hi, I'm in the middle of a 5yr fixed at 3.4% with Ulster bank, can I negotiate a better deal with the same bank if they have better rates on offer

Cyrus

aomh wrote: »

Hi, I'm in the middle of a 5yr fixed at 3.4% with Ulster bank, can I negotiate a better deal with the same bank if they have better rates on offer

you can but you may have a breakage fee to pay to ulserbank so that needs to be weighed against savings you could make

contact them for a breakage fee

Millem

pwurple wrote: »

AIB have a 5 year fixed @ 2.5%.

What variable are you rolling on to?

All the fixed rates seem very low to me, makes me think a variable drop is on the horizon this year or next.

You must have a bet of b3 minimum for that rate.

Millem

aomh wrote: »

Hi, I'm in the middle of a 5yr fixed at 3.4% with Ulster bank, can I negotiate a better deal with the same bank if they have better rates on offer

Yes try it, that’s what I did with AIB and they have offered to waive the breakage fee if I stay with them.
We met Ulster bank and they offered us the 2.2% and €1500 to cover legal fees so it seems like a no brainer!

deco72

Millem wrote: »

Yes try it, that’s what I did with AIB and they have offered to waive the breakage fee if I stay with them.
We met Ulster bank and they offered us the 2.2% and €1500 to cover legal fees so it seems like a no brainer!

Would you not think about going with KBC instead on the 2.25% mortgage and €3000 cashback. It's also only a 2yr fixed rather than a 5yr. So could easily do the same again in 2yrs time if it was worthwhile.

christy c

What are people paying in legal fees for switching? I was quoted €1,250 excluding VAT and outlay. About €1,900 all in.

I intend to shop around more.

listermint

christy c wrote: »

What are people paying in legal fees for switching? I was quoted €1,250 excluding VAT and outlay. About €1,900 all in.

I intend to shop around more.

What's outlay ?

brightkane

christy c wrote: »

What are people paying in legal fees for switching? I was quoted €1,250 excluding VAT and outlay. About €1,900 all in.

I intend to shop around more.

Got a quote today for 1500 all in