fixed rate

H

hgf

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anyone know if your are "stuck" in a fixed rate with the county council for the first 5 years of your AH mortage, (which now feels extortionate), is there any way of getting out of paying this rate???

Also, if the legislation discussed in many other threads goes through (whereby an AH owner can remortgage with another lender of their choice), would the coucil allow you to do this when "tied" to another 3 years fixed interest rate payment to them??????
thanks
 
Hey hows it going.

With a fixed rate mortgage you can break the contract but usually there will be a break out fee. The amount depends on how long the fixed period is for, how long you have been in the fixed period, how much is outstanding and what interest rate you are paying, varies between companies.

Each provider will have a formula for working this out and that formula will be registered with the Financial regulator.

PTSB have now introduced a policy where you cant switch to variable if your staying with them, but can break out if you are switching providers, but again you will be subject to a penalty for ending the contract early.

As for the council, id imagine that you can only stay with one of their designated providers.

Hope this helps...
 
i have just contacted fingal co co and have been told there is no way i can get out of my fixed rate mortgage and must pay an extortionate 4.8% interest for the remaining 3 and half years.

i am astounded that this is the case. has anyone else had any luck with getting out of this fixed rate in the current climate??? (i can totally understand that a breaking penalty and am willing to pay this)

any advise would be greatfully appreciated
 
well i understand your feeling hgf and worse on 5.6 for next five years with ebs and was in today with them and told i can break out for 17,000 . when i took out my mortgage i asked them did they see there rates going down in the future and was told they didn't think so. The following day after i signed they dropped and have continued to freefall. Disgraceful treatment i feel and going to request with the council that they be stricken of the AH scheme as it totally counteracts the scheme. I have heard that AIB and BOI have let people out of such extortionate rates can anyone confirm this to me . Would be very grateful if anyone could.
 
hi benny11
thats disgraceful!!!! and i agree.it goes completely against the whole idea of "affordable" housing!
im actually going to contact the financial regulator tomor as from what ive read, there should a way out of this fixed rate. fingal have said there is NO WAY. surely this is not correct??? there must be a way even with a breakout penalty!!!
 
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Hi, i dont think the council have a say in the matter really!! your contract for the loan itself is between you and the mortgage provider, council has no say in the terms of a mortgage contract.

Check out your terms, see if there is a breakout clause, if so, use it, well request a redemption figure at least.

Each company has a formula, that will be registered with the fin regulator so they have to stick to that formula.

They are allowed to not provide you with an alternative contract (Variable ) but cannot stop you redeaming and switching providers ( Within the councils chosen providers )

hope this helps.
 
in my case, the mortgage provider IS the council. when i got my mortgage i didnt have an option to go to a bank, but had to get my mortgage from them. so if they are saying NO to getting out of fixed rate, where can i go from here?
have tried contacting the minister for housing...still awaiting a response

PS contacted the financil regulator and apparantly they "dont regulate the county councils".

So its pretty much a brick wall so far.
anyone else had any luck in similar situations???
 
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I am stuck with Fingal Co Council on 5 year fixed at over 5.5%. Its crazy and not affordable. My friend who is on variable got similliar loan amount at same time as me has had her mortgage reduced by over 200 a month.

I am like benny aswell. I never benefited from this fixed rate as after I signed the rate went down the following week. I think in these type of situations the bank/council should allow you out.

I did ring the fingal and they mentioned a figure of 9000 to get out of fixed and into varible but in the womans own word "this is just a guess no real figures to back it up at the moment"

GOOD NEWS - there is a bill under review "amendment to the housing act" which will allow people with council mortgages to "remortgage" with some banks without paying the clawback. Clawback will only come into play when selling

I was told about this bill last year and having been spamming my TDs for info. Last info from them is that its under review and the hope to get it passed by summer break.

When I asked council about this, they said they did know about it but doubted it would be passed by the summer,

Figures crossed
 
Hi all,

One of the reasons for relatively expensive mortgage repayments with council housing loans is there mortgage protection. This amounts to 0.598% in addition to the interest rate on mortgage.
 
yes it awful the rate of .598% total rip off and it only covers the basics in case of death. I contacted Fingal to see if I could go elsewhere for cover but no joy there locked in to it with the fixed rate for five years, at the moment its working out 100 a month on top of mortgage my friend is with kildare coco affordable and she was able to get her own cover for only 20per month. its a total joke
 
Hi, we are also stucked on a fixed interest rate of 5.25% + 0.5615% Mortgage Protection from Fingal County Council for 5 years. New variable rate with Fingal has now reduced to 2.25%. Not even a year in the property. We felt so hard done by this as we were quite like rushed to a decision as the lady in the council mentioned that the rates will go up in September of '08, therefore, we closed the deal end of Augutst 2008. Is there a way could we appeal this? Pls help. Any reply will be greatly appreciated. Thanks a million.
 
I enquired with Fingal yesterday by email asking them what it would cost to break out of a fixed rate mortgage. This was their reply.

We are unable to give figures at present because we are waiting guidelines from the Department as to how much the break out fee will be.

We will contact you when these guidelines are issued.


I guess the Department will have the final say.
 
Thanks JohnJay I might drop them an e-mail myself, the more the merrier in order for us to get a quick reply from the Department.
 
Hi,
Anyone know or received any reply on the break out fee from Fingal County Council? I want to write a complaint during and after the process of our affordable housing, would anyone know where to address the letter directly? Thanks.
 
Fingal emailed me with the following "sample" breakout charges for a 150k mortgage. These figures look crazy to me.



4 years​
14,756​
3 years​
11,154​
2 years​
6,063​
1 year​
1,628​
 
JohnJay said:
Fingal emailed me with the following "sample" breakout charges for a 150k mortgage. These figures look crazy to me.




4 years


14,756


3 years


11,154


2 years


6,063


1 year


1,628​
Click to expand...
Hi JohnJay, thanks for your post. Looking at these crazy figures now, there is no way we could breakout from our fixed rated still running for another 4 years. I heard on the news this morning, interest rate is remaining the same. We were so naive to sign-up for 5 year fixed rate. So depressing........
 
4sure said:
Hi JohnJay, thanks for your post. Looking at these crazy figures now, there is no way we could breakout from our fixed rated still running for another 4 years. I heard on the news this morning, interest rate is remaining the same. We were so naive to sign-up for 5 year fixed rate. So depressing........
Click to expand...

Crazy as they are, I am still more than tempted to sell. I figure it would cost me about 8k to get out of mine, but it would mean I could sell my apartment and buy a house. Long term, it might be a better option for me.
 
It's unfortunate when rates fall and you are stuck on a fixed rate. However, would you be feeling it is such a rip-off if rates had gone the other way?

A fixed rate doesn't change, so to suddenly claim it is a ripoff just because others can now get a better deal sounds very much like sour grapes. You knew what you would be paying when you took out the mortgage.

Although your mortgage is with the council, they would have in turn borrowed from someone else. If they let you out of the deal they would still be paying the higher fied rate on the other side so would lose out a lot.

The breakout calculation reflects the difference between the fixed rate mortgage and the current variable rates for the reaminder of the fixed term. As a result the longer ther term and the greater the difference, the greater the cost to break out.
 
dubrov said:
It's unfortunate when rates fall and you are stuck on a fixed rate. However, would you be feeling it is such a rip-off if rates had gone the other way?

A fixed rate doesn't change, so to suddenly claim it is a ripoff just because others can now get a better deal sounds very much like sour grapes. You knew what you would be paying when you took out the mortgage.

Although your mortgage is with the council, they would have in turn borrowed from someone else. If they let you out of the deal they would still be paying the higher fied rate on the other side so would lose out a lot.

The breakout calculation reflects the difference between the fixed rate mortgage and the current variable rates for the reaminder of the fixed term. As a result the longer ther term and the greater the difference, the greater the cost to break out.
Click to expand...

You sound like you work for the council Dubrov. I don't need your lecture as if you know everyone's circumstances. Yes, it is a rip-off from the Council because there is only 2 choices to choose from either variable or 5 year fixed. No tracker mortgage or even at least 3 year for fix. It has to be 5 year term. I was also advised by a council staff that rates would continue to increase at that time. How naive I am. I thought I knew what I was doing. An expensive lesson to learn. I don't wish it to anyone, fair play to others who's getting extra savings, every penny counts. But how would you know Dubrov? Don't judge.
 
Sorry I wasn't trying to sound patronising.

I just don't think what you were offered at the ime was a ripoff. A lot has changed since then.

I assume you weren't offered trackers as the bank that was funding the deal was no longer offering such products. I'm not sure why A 3 year fixed product wasn't offered though.

Council staff shouldn't have advised you on the future direction of rates either way though. You may have an argument there.
 
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