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Fixed Rate breaking fees

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  • 26-05-2021 10:48am
    #1
    jayjay2010
    Registered Users Posts: 505 ✭✭✭


    I have a friend who is being quoted approx €700 to break out of a fixed rate mortgage which has 13 months term remaining whereas my bank are quoting me €0 and I have just under 3 years term remaining. We have very similar interest rate and mortgage balances.

    Would there be any reasons why this could be? I know breaking a fixed rate loan has something to do with the cost of the bank funding arrangements but I would have thought that all Irish banks would use the same source for their lending arrangements?

    TIA


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    #2
    houseyhouse
    Registered Users Posts: 693 ✭✭✭houseyhouse


    They all have different policies. Very surprised yours is 0. Who are you with, if you don't mind me asking?


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    #3
    jayjay2010
    Registered Users Posts: 505 ✭✭✭jayjay2010


    houseyhouse wrote: »
    They all have different policies. Very surprised yours is 0. Who are you with, if you don't mind me asking?

    Oh right. I'm with PTSB. Any time I've ever asked the fee has been €0. I literally just entered a new 3 Y fixed rate a few months ago and I called them and the fee is still €0.


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    #4
    Smee_Again
    Registered Users Posts: 2,036 ✭✭✭Smee_Again


    The other variable you haven't accounted for is the rate the bank was borrowing money at when the time the mortgages were fixed.


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    #5
    Tallaght_Sale
    Registered Users Posts: 19 ✭Tallaght_Sale


    houseyhouse wrote: »
    They all have different policies. Very surprised yours is 0. Who are you with, if you don't mind me asking?

    They are only allowed to charge their funding rate. Which seeing as the ECB has been at 0% for a while.....

    Worth asking them for a full breakdown. Mine is also 0%


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