Bank of Ireland quoting high break fees

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Beula1983

Registered User
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Hi all first time posting ... after much reading on these forums I decide to call BOFI today to see what I can do about my fixed rate.
Background info ...
Amount left on mortgage .. 287000
Date fixed August 2017
Date fixed rate up August 2020
Current fixed rate 3.2%
LTV : 70%
Amount of time left on the mortgage 24 years .
I wanted to negotiate a lower rate and find out what the breakage fee is .
They are prepared to offer me 2.9% for two years but they are insisting on 560e breakage fee.
Has any got any further with negotiating their rate down and the breakage fee ? I’m unsure if the breakage fee is correct ? Any tips greatly appreciated !
 
Last edited:
@Beula1983

(3.2%-2.9%)*€287000= €861 annually. Over the next 18 months that's about €1300.

That's well above the breakage cost of €560. The cost is up front but saving obviously accrues over time.


From recent personal experience with BoI you cannot negotiate the breakage fee itself. You can negotiate the rate, I got 2.8% from them in the last week by threatening to switch. Keep calling them.

Also insist to see the workings of the breakage fee from the bank in writing. You are entitled to that. BoI have got the arithmetic on this completely wrong in the past with me and the only way to check is to see their workings.
 
Thanks so much for the reply folks.
I will definitely keep pushing them on the rate . It’s very frustrating isn’t it ....
Lol at the typo
 
hi, we switched to BOI last year on the 3% plus cashback for 5yrs. Contacted them last week and was told that i could have the 2.8% but would have to pay a breakage fee of 4100. We drew down 255k at the time. Was shocked at cost of breakage fee. Has anyone here successfully changed from the 3% to 2.8% without incurring this breakage fee?
 
The fee is calculated on the interbank rate when you took out the loan - the interbank rate today and multiplied by the number of months left on the fix. Honestly the only way is to get them to send you the calculation and the workings. Once you have that post it up here and people will be able to advise. The fee can change day to day due to interbank rates.
 
Tinney78 said:
hi, we switched to BOI last year on the 3% plus cashback for 5yrs. Contacted them last week and was told that i could have the 2.8% but would have to pay a breakage fee of 4100. We drew down 255k at the time. Was shocked at cost of breakage fee. Has anyone here successfully changed from the 3% to 2.8% without incurring this breakage fee?
Click to expand...

They will not negotiate on the breakage fee.

In picking a 5-year rate you bought insurance against retail interest rates rising.

Naturally, now that rates are falling, they are not going to give you the benefit without a cost.
 
Does the breakage fee go down as the time passes ? If I was to ring in a few months time would it be less ?
Thanks in advance
 
Beula1983 said:
Does the breakage fee go down as the time passes ? If I was to ring in a few months time would it be less ?
Thanks in advance
Click to expand...

Well assuming interbank rates don't change the multiplication by the number of months left will be less. So if all things stay the same yes it will.

I see a lot of people ask questions regarding break fees of fixed rates on here honestly ask the bank for it in writing with calcs it costs nothing and then post your question. Questions can be useful but without real numbers and calcs it's not going to be that much help.
 
Beula1983 said:
Does the breakage fee go down as the time passes ? If I was to ring in a few months time would it be less ?
Thanks in advance
Click to expand...

The breakage fees mechanically falls as you get close to the end of the fixed rate period.

It also falls if the interbank rate rises. But if the interbank rate rises they are less likely to be offering you a rate lower than what you have already.

Ring them up and look for a worked example.
 
Just to update ... I rang bank of Ireland re the breaking fee and suddenly the fee has dropped to 167e ... the calculations seem bizarre to me ... she said I can’t pay the break out fee till I either sign up to the 2.9% fixed rate with them or I committed to switching and the other bank contacts them ... is this true ? She also said she couldn’t guarantee that they fee wouldn’t go up in the next while either
 
Good work on getting the information - also get this in writing it should be valid for x number of days.

In theory the calculation could change day to day and yes you can't pay the fee unless you have the future lined up of where you are switching or fixed rate you are moving too.
 
I’m hoping to move to the 2.9% with BOI ... we can’t switch at the moment as we won’t be in a position to change mortgage protection ( health issues have just arisen ) however I’m guessing if we get the lower rate we can save around 50euro a month and fix it for two years which would be super .
Thanks for all your advice ... I’ll keep you posted re breaking rate etc
 
Just got a call from BOI ... breaking fee is 167euro today ... so I grabbed it with both hands ... delighted with myself ... just a few phone calls and my mortgage is down near 50euro a month for the next 2 years ... thanks everyone for your advice
 
Hi,
I would like to switch mortgage next year and what things do I need to look while getting mortgage protection please ?

Dauhee said:
fyi - you can reassign your existing mortgage protection to another bank (as long as its not block protection)
Click to expand...
 
Hi, I've found chill insurance get a great price and easy to deal with, they also help with any administrative changes like changing mortgage - makes it very easy. Only thing is if your new mortgage has a longer term, would need to get a new policy (can only level of reduce cover on existing policy)
 
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