Stevie Boy
Registered User
- Messages
- 5
Hi There,
I have asked for a break on a fixed rate mortgage from Bank of Ireland.
I have been offered a tracker rate from AIB as part of a tracker settlement, so I need to switch.
Bank of Ireland have quoted me €9172.
I have around €383,000 outstanding on my mortgage, fixed at 2.8% for another 1042 days.
They calculated it as follows:
Average Balance = €365,517.11 (not sure why they bring that down by 18k)
Cost of Funds at Date of Funding = 0.31%
(Investment Rate) at date of breaking fixed term = -0.569%
Number of Days remaining on fixed = 1042
The difference in the original cost of funds (0.31) and investment rate (-0.569%) is 0.879%
Funding fee is calculated by:
€365,517.11 x 0.879 / 36500 x 1042 = €9172 Bank of Ireland Break Fee
The difference I have is in the Cost of Funds at Date of Funding, I have that @ -0.31%.
Please see my own calculation below
Mortgage balance outstanding:€383,000.
5 Year fixed rate started November 2018.
Breakage fee quoted today (31 December 2020) : €9158
By my calculation using example from previous thread on here.
R Interbank Market Rate Nov 2018 = -0.32% (Circa)
R1 Interbank Market Rate Jan 2021 = -0.52% (Circa)
The difference in the original cost of funds (-0.32) and investment rate (-0.52%) is 0.879%
Breakage Calculation = (Redeemed Amount x (R-R1) x Time) / 365 =
€383,000 x ( -0.32% - (-0.52%) x 1065) / 365 = €2,235.04 My Calculated Break Fee
Am I missing something or is my calculation incorrect?
I have already had a 3 year battle about a tracker mortgage which I won, but now Bank or Ireland seem to be overcharging me to get to my AIB tracker rate which I won in the settlement!
Is it ever over!!
Thanks so much,
Stevie
I have asked for a break on a fixed rate mortgage from Bank of Ireland.
I have been offered a tracker rate from AIB as part of a tracker settlement, so I need to switch.
Bank of Ireland have quoted me €9172.
I have around €383,000 outstanding on my mortgage, fixed at 2.8% for another 1042 days.
They calculated it as follows:
Average Balance = €365,517.11 (not sure why they bring that down by 18k)
Cost of Funds at Date of Funding = 0.31%
(Investment Rate) at date of breaking fixed term = -0.569%
Number of Days remaining on fixed = 1042
The difference in the original cost of funds (0.31) and investment rate (-0.569%) is 0.879%
Funding fee is calculated by:
€365,517.11 x 0.879 / 36500 x 1042 = €9172 Bank of Ireland Break Fee
The difference I have is in the Cost of Funds at Date of Funding, I have that @ -0.31%.
Please see my own calculation below
Mortgage balance outstanding:€383,000.
5 Year fixed rate started November 2018.
Breakage fee quoted today (31 December 2020) : €9158
By my calculation using example from previous thread on here.
R Interbank Market Rate Nov 2018 = -0.32% (Circa)
R1 Interbank Market Rate Jan 2021 = -0.52% (Circa)
The difference in the original cost of funds (-0.32) and investment rate (-0.52%) is 0.879%
Breakage Calculation = (Redeemed Amount x (R-R1) x Time) / 365 =
€383,000 x ( -0.32% - (-0.52%) x 1065) / 365 = €2,235.04 My Calculated Break Fee
Am I missing something or is my calculation incorrect?
I have already had a 3 year battle about a tracker mortgage which I won, but now Bank or Ireland seem to be overcharging me to get to my AIB tracker rate which I won in the settlement!
Is it ever over!!
Thanks so much,
Stevie