AIB fixed rate breakage fee

rekhib

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We currently have a variable rate mortgage with AIB (<= 50%, 2.75%) but we were looking at moving on to AIB's new 5 year fixed "green" mortgage. The only thing holding me back currently is the inability to make overpayments. In the literature that AIB sent out, the formula for calculating the breakage cost for any overpayments is (A) x (U) x (D%), i.e. the early repayment amount (A), the remaining fixed term (U) and the difference between the fixed term interest rate (i.e. 2.5%) and the prevailing interest rate for the remaining term. It's that last item which I'm having trouble pinning AIB down on and was hoping somebody might be able to shed some light on it. Is the prevailing rate simply the retail amount quoted on their website, i.e. they are offering 3, 4 and 5 year fixed rates at 2.85% so therefore no breakage fee applies? Any advice on whether the 0.25% rate reduction itself would even be worth it if we had to move from variable to fixed would also be hugely welcome. Many thanks.
 
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