Breaking a part of fixed rate mortgage

M

masterboy123

Registered User
Messages
440
Hi All,

Is it possible to break a part of a fixed rate mortgage.

So only break and overpay the amount you can. And leave the balance fixed at the original rate?

Example:
If I have 100k balance which is on a fixed rate mortgage and I want to pay off 20k lumpsum, the bank will work out a break fee for 20K only?
 
Hi Masterboy

There was some confusion over your question and I have deleted the replies trying to figure out what you were asking.

I think you are asking if you lose the fixed rate when you make a partial capital repayment? (If that is not what you are asking, please clarify exactly what your question is.)

When you make a lump-sum payment against a fixed rate mortgage, the remainder of the mortgage is not affected.

So taking your example.
Let's say you are on a fixed rate of 3% with 5 years remaining.
Let's say that the early repayment fee for the full mortgage of €100k is €4,000.
If you make a capital repayment of €20,000, you will be charged an early repayment fee of €800.
The remaining €80,000 will continue at 3% for the next 5 years.

Brendan
 
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