Big quote for break out fee

W

West of Ireland

Registered User
Messages
4
hi all
First time poster here !
I would really appreciate any advice on the issue below

My mortgage is split into 2
-Big one 70,000 remaining , currently on 3.3% fixed with bank of Ireland and I’m tied in until October 2020

-Smaller one has 25,000 remaining , and I’m just coming off 3.6%fixed with bank of Ireland so no break out here

I have negotiated a 2.8% fixed with bank of ireland -

( due to change in work ( currently on career break and self employed for last 21 months its not possible for me to switch to other banks as they are looking for 2 and 3 year accounts )

Issue is bank of Ireland are quoting me 570 euro to break out of mortgage above ( larger one ) . Smaller one is fine as it’s term is up. Break out fee seems high to me . I tried to see if they would waive it but was told this never happens ? And not a runner...

Term of mortgage : 15 years remaining

I would really appreciate any advice .

Many thanks
 
Phone them up again and tell them you're moving to X bank for a lower rate and you need to know the break fee. Sometimes this works.

If that doesn't work, get your solicitor to request the title deeds in order to switch bank, that also might work.

Have you worked out how much you'd save if your 70K @ 3.3% goes to 2.8%?
 
The cost is 0.4% annualised.
The saving is 0.5%.

You've a relatively small mortgage, so not the same negotiation power as others with larger balances.

I'd only break if you were going to fix for a longer term.
 
Many thanks Bronte also. I only just spotted your post . Tried today , no budge on the break out . I will try solicitor route . Cheers for the advice . Yes I’ve worked out that I will save 40 euro per month ( I pay every fortnight )
It will take about 14 months to clear the break out fee and then and only then will I really be Seeing savings
 
Many thanks red onion for going to the effort of doing that ! Fantastic to know as when I was talking to bank they said I would be saving 40 month approx . Am learning one really needs to question everything . Fantastic to have such knowledgeable people like yourselves . Thanks again
 
West of Ireland said:
Many thanks Bronte also. I only just spotted your post . Tried today , no budge on the break out . I will try solicitor route . Cheers for the advice . Yes I’ve worked out that I will save 40 euro per month ( I pay every fortnight )
It will take about 14 months to clear the break out fee and then and only then will I really be Seeing savings
Click to expand...
Based on 29 Euro it will be August 2020 (1 month this year, 12 in 2019, 7 in 2020).

You are clearly exercised by this, is money tight, do you want to do the money makeover to see if we can spot somewhere for you to make savings, as clearly breaking out is really not justified for you.
 
You must log in or register to reply here.
Back
Top