Breaking Fixed Interest Rate

M

micra

Guest
Hi

Im new to the site and im just wondering if anyone could give me advice and help me on the following:
Im 3 years into my mortgage. After year 1 I fixed my interest rates for 3 years.
My loan offer states that i "must instruct the bank in writing" to fix my interest rates if I ever wanted this done.
Fixing my interest rate was agreed with the bank over the phone (a long story). Afterwards the bank wrote out to me confirming the fixed interest rate was in place.
I did not sign anything for the bank or write to the bank instructing them to fix my interest rates.

1) Is my loan offer a legal contract?
2) Is the letter the bank wrote out to me confirming that the fixed interest rate is in place a legal contract?
3) Does the letter from the bank overrule my orginal loan offer?
4) Because i never instructed the bank in writing to fix my interest rates can i get them to put me back on to the variable rate?

I want to break my fixed interest rate but i got quoted over €8,000.

I would really appreciate any help and advice that i can get on this matter.

Thanks
 
I think you'd be hard-pressed to convince anyone that you are a victim of malpractice by a bank here. You requested (verbally) they fix the rate. They did so and wrote to you to confirm it, you did not at that point protest that you didn't want it fixed so by doing nothing you confirmed the agreement to the fixed rate. Unless you actively at the time asked them NOT to fix your rate when you received their notice to your new agreement I don't see why you think you have a leg to stand on. Sorry to be harsh but you made one agreement then REQUESTED they amend it to YOUR satisfaction at the time. They complied with your request (despite you not following their procedure) and sent you notification of same. You did NOTHING to give them any reason to believe you did not want them to comply with your verbal request or even had changed your mind about fixing it since the phone conversation. And now TWO YEARS LATER you want to basically weasel out of your side of that bargain? Seems a bit rich to me. You made a choice at the time to fix. You did so in full knowledge of the rate and with the assumption that you are capable enough to understand that interest rates fall sometimes. You can't simply re-arrange the contract to your advantage. There are two ways to get out of a fixed rate contract, pay the money penalty or pay the time penalty. You choose.
 
so-crates said:
I think you'd be hard-pressed to convince anyone that you are a victim of malpractice by a bank here. You requested (verbally) they fix the rate. They did so and wrote to you to confirm it, you did not at that point protest that you didn't want it fixed so by doing nothing you confirmed the agreement to the fixed rate. Unless you actively at the time asked them NOT to fix your rate when you received their notice to your new agreement I don't see why you think you have a leg to stand on. Sorry to be harsh but you made one agreement then REQUESTED they amend it to YOUR satisfaction at the time. They complied with your request (despite you not following their procedure) and sent you notification of same. You did NOTHING to give them any reason to believe you did not want them to comply with your verbal request or even had changed your mind about fixing it since the phone conversation. And now TWO YEARS LATER you want to basically weasel out of your side of that bargain? Seems a bit rich to me. You made a choice at the time to fix. You did so in full knowledge of the rate and with the assumption that you are capable enough to understand that interest rates fall sometimes. You can't simply re-arrange the contract to your advantage. There are two ways to get out of a fixed rate contract, pay the money penalty or pay the time penalty. You choose.
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+1

I would be confident enough to state that the call was recorded and they could pull it up if a dispute arose. Something like a sales department wouldn't take a risk by not getting consent in one way or the other.

You knew what you were doing, you chose the fixed rate, by the time a resolution was resolved (which would be in the nanks favour), the rate will probably have elapsed anyway.
 
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