Moving to a lower fixed rate

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random10

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A while back I rang BOI about changing to Ulster bank and enquiring about the breakage fee. This week I got a letter offering me 2.8% for up to five years . I'm currently fixed at 3% for five years. The letter just asked me to tick box of choice and return but there is nothing about a breakage fee, so are they offering me a reduction from 3% to 2.8% at no charge??
 
Yes thats what it looks like.
BOI recently reduced my 3% fixed rate to 2.7% 5 year fixed without any break fee.
 
No I rang today and she said there would be a breakage fee. The first day when I asked about moving the breakage fee was 1,800 second time I rang 2,800 and today 3600 so don't think it's worth my while changing
 
random10 said:
No I rang today and she said there would be a breakage fee. The first day when I asked about moving the breakage fee was 1,800 second time I rang 2,800 and today 3600 so don't think it's worth my while changing
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Hi, did your bank provide you with a written break fee? If not, as for one outlining their assumptions so you can understand how the break fee is calculated. The mortgage credit directive requires them to provide this for you.
Back if an envelope when I looked at your details before, I thought that fee was high.
 
No I didn't get a written break fee. I might ask them to send me one but from what I can see it's a lottery. For example my breakage fees have ranged from 1800 to 3600. So if for example I decide to fix at 2.8% today and the fee is 1800 I send off my letter but when they process it in a few days time the fee might be 3600 and that's the price I pay, don't like that at all when there is such a variance in cost. That's how it was explained to me unless I took it up incorrectly
 
I got a break fee quote in writing from Haven last week stating that the fee was only valid for 5 days, the fee was €0 which I found surprising.

I am in the process of moving to Ulster bank fixed rate however by the time I have all the paperwork lined up it will be past the 5 days the above quote was valid for. Based on radom10's last post when I actually go to move and could be charged a different break fee? Anyone have any experience with this or how to handled best?
 
Hi @random10
I took a few minutes to do a tough calculation on your details.
The 4 year rate now is approx 0.26% less than the 5 year rate when you fixed back in January. By my calcs break fee should be around 2,800 - I don't have access to interbank deposut rates though so I might be slightly off.
As the rate reduction offered is only 0.2%, it's not worth while breaking for that.
I'd be interested to see their calculation though if you do get a written one - I'm not sure how much detail they actually get into.
 
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