Break free mortgage

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kicoole

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Hi we just made a new fix with BOI for the outstanding amount of 110.000 Euro. start date Sep 2023 for 5 year fix.
We have always had the mortgage with BOI and currently the new interest rate is 4.0%.

Now I will get a pension early payout which could bring down the mortgage to 30.000Euro outstanding.
Will I have to pay a breakfree to be able to pay in the 80.000 Euro will there be any penalty.

I'm looking at saving 20.000Euro + on the early pay out as I will have 3 years left to pay.

Thank you.
 
Hi @kicoole
It depends on how interbank market rates move from the date you fixed to the date you repay early. Theyve been relatively stable tge last few weeks.
If you phone BOI I understand they can tell you if there will be a break fee over the phone.
If there is a break fee, it will be minimal and you'll save a multiple of it in interest by repaying early.
 
kicoole said:
Hi we just made a new fix with BOI for the outstanding amount of 110.000 Euro. start date Sep 2023 for 5 year fix.
We have always had the mortgage with BOI and currently the new interest rate is 4.0%.

Now I will get a pension early payout which could bring down the mortgage to 30.000Euro outstanding.
Will I have to pay a breakfree to be able to pay in the 80.000 Euro will there be any penalty.

I'm looking at saving 20.000Euro + on the early pay out as I will have 3 years left to pay.

Thank you.
Click to expand...
If you pay off part of the mortgage will you have enough to pay the balance? Also what if you need the payout later on? You have tax free release of your pension. Personally I will hold onto it.
 
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