Break 3 year fixed mortgage?

R

roytheboyo

Registered User
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Hi All,
Please consider the following situation:
Couply buy house 2005. Enter 3 year fixed mortgage at good rate. Couple are now going separate ways, one of them taking over mortgage. Bank demanding €4k to break 3 year fixed mortgage. Split very amicable. Same house, same mortgage size and terms would be ideal. Is there any way to get around paying this money, when the only change requested would be to remove one of the peoles names from the mortgage?
(Person keeping on mortgage does qualify for the full amount)
Thanks, Roytheboyo.
 
Given that the mortgage amount and term would be the same it seems very unfair that your lender is insisting you break the fixed rate AND have to pay the penalty. How senior have you gone with your lender at this stage?

Sarah

www.rea.ie
 
Hi Sarah,
Thanks for your reply. I havent gone very senior at all as i wanted to see what the normal practice was before screaming at them. They not being helpful, we bought our house in a differnt place than the branch we dealt with orininally and now they want to charge us to deal with a new branch in a neighbouring county.
I just think that given that we want everything about the mortgage to stay the same (including current account to be paid from etc) except change from 2 names to 1 it seems excessive to charge a full breaking fee.
 
Is the lender insisting you break the fixed rate term? and if so why? Ask them to specifically detail why you must break out of the fixed rate in order to remove a name from the mortgage. ( dont accept "thats just policy") they must clarify why this is necessary. if you are moving house most lenders will allow you bring the fixed rate with you to the new property to avoid breaking out of the fixed rate, why is your scenario any different.?

What rate are you fixed at ?
Do they have as good a rate to switch you to?

we bought our house in a different place than the branch we dealt with orininally and now they want to charge us to deal with a new branch in a neighbouring county
Click to expand...

do you mean they have requested a fee from you in order for you to deal with a different branch than originally that set up your mortgage?
Thats crazy, I would'nt under any circumstances pay them.
 
I remember in my previous life in branch banking Roy you could either pay the penalty and take out a new mortgage or else transfer the fixed rate to the new mortgage (which is what you would like to do). The bank will not be out of pocket in either case.
You might ask the bank how they are calculating the penalty. As the rate is more than likely lower than current rates, it is very unfair that you would have to pay a penalty and then take out a mortgage at a higher rate.
 
Thanks to you both. The rate is exact same, but would be tracker, therefore loose 2 years protection from ECB rises. The bank have the best rates at the min.
In relation to charging to move i have no idea how they figure this one out. I will ask them more about the penalty, just wanted to see if i was alone in thinking it was a bit much.
Roy
 
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