eyesgreen_1
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2. In the long run is it there much financial difference in paying off lump sums or better to pay a consistent monthly overpayment, or both?
Damn, didn't realise I didn't have to break out entirely. Redonion you're a goldmine! Is this the case with all banks( I'm with Ulster)?Firstly, you're lucky to have such a small mortgage balance.
With BOI you can make regular overpayment of 65 per month without them checking if a break fee applies. Use that each month.
The difference between the fixed and variable rate is about 230 interest in year 1.
If you fix, and want to pay off a lump sum, you just pay breakage fee (if applicable) on the amount you want to overpay. You don't have to break the entire and refix.
So at the moment, to pay 5k your break fee would only be 3euro.
Personally, I'd fix, and aim to overpay regularly. Then pay the breakage fee on the amount of lump sum - it can never be more than the amount of interest you're going to save.
So I rang Ulster and made it clear I just wanted the break fee for overpaying by 6000. This is after already overpaying 10 % for the year. The letter says ' you are on a fixed rate of 2.3% until 30 sept 2020. To break out of this fixed rate early, you would have to pay a fee of 219. This amount is valid until 24 June 2019'. I only received the letter today the 25th and also should it be this high?Firstly, you're lucky to have such a small mortgage balance.
With BOI you can make regular overpayment of 65 per month without them checking if a break fee applies. Use that each month.
The difference between the fixed and variable rate is about 230 interest in year 1.
If you fix, and want to pay off a lump sum, you just pay breakage fee (if applicable) on the amount you want to overpay. You don't have to break the entire and refix.
So at the moment, to pay 5k your break fee would only be 3euro.
Personally, I'd fix, and aim to overpay regularly. Then pay the breakage fee on the amount of lump sum - it can never be more than the amount of interest you're going to save.
Thanks redonion. Would you guess that 219 is wrong then? So in future when I ring them initially and they say they'll send out the letter I should tell them I want to pay it now knowing the fee should be around 5 euro like you previously said? Just trying to wrap my head around all this.@Eoghan
Honestly, I've no idea. I would normally say the letter should be clear, but those UB letters confuse me. If you call them they should be able to answer that for you.
You might be better off just paying the lump sum rather than waiting for letters that seem to be delayed - the break fee won't be anywhere close to the amount of interest you'll save.
Went ahead with that. Only 15 euro instead of 219. I'll know the craic for next time. Thanks again@Eoghan
Honestly, I've no idea. I would normally say the letter should be clear, but those UB letters confuse me. If you call them they should be able to answer that for you.
You might be better off just paying the lump sum rather than waiting for letters that seem to be delayed - the break fee won't be anywhere close to the amount of interest you'll save.
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