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Break fund fee

  • 28-10-2020 8:08pm
    #1
    dingdongdessie
    Registered Users Posts: 3 ✭


    I’m looking to leave a fixed 10 year mortgage with KBC. I’ve 7 years left on it. It was on 2.99% . And I’m looking to take out a new mortgage with them on a new gaff that I’m moving to on a rate of 2.25%. Now I figured there maybe a penalty. But they are looking to recoup 28k from me for the privilege of breaking the agreement. This is obviously an astronomical sum of money. I expected it to be a grand or three. But nothing near this. Anyone else ever get hit with a figure like this? Or explain how this is okay?


Comments

  • #2
    Timing belt
    Registered Users, Registered Users 2 Posts: 3,565 ✭✭✭Timing belt


    dingdongdessie wrote: »
    I’m looking to leave a fixed 10 year mortgage with KBC. I’ve 7 years left on it. It was on 2.99% . And I’m looking to take out a new mortgage with them on a new gaff that I’m moving to on a rate of 2.25%. Now I figured there maybe a penalty. But they are looking to recoup 28k from me for the privilege of breaking the agreement. This is obviously an astronomical sum of money. I expected it to be a grand or three. But nothing near this. Anyone else ever get hit with a figure like this? Or explain how this is okay?

    The bank will have arranged funding for the 2.99% mortgage. If you break your mortgage the will break the funding deal and pass on the cost to you plus a fee say 500 euro.


  • #3
    Geuze
    Registered Users, Registered Users 2 Posts: 13,590 ✭✭✭✭Geuze


    dingdongdessie wrote: »
    I’m looking to leave a fixed 10 year mortgage with KBC. I’ve 7 years left on it. It was on 2.99% . And I’m looking to take out a new mortgage with them on a new gaff that I’m moving to on a rate of 2.25%. Now I figured there maybe a penalty. But they are looking to recoup 28k from me for the privilege of breaking the agreement. This is obviously an astronomical sum of money. I expected it to be a grand or three. But nothing near this. Anyone else ever get hit with a figure like this? Or explain how this is okay?

    The people on AAM are good on these calculations, if you want to check.


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