Dilosk break fee

M

Moon light

Registered User
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Hi Brendan and Red onion,

So I got the breakage figures back from Dilosk,
They are as follows:

Capital Bal €141k
Interest due €149
Fixed rate breakage cost €3467 (This has come down from the 4.4k figure I was quoted 4 mths ago)
Total amount required to repay mortgage €145k
Daily interest accrual €13

They did not explain their rates for their equation of C = A x (R% - R1%) x D

I am so tempted to be done with it and break out of this fixed rate, pay half or almost half off the 141k and see if I can switch banks and try and get a better rate than 3.5%, instead of staying with Dilosk for another 15 months,
Is this possible, will another bank take on a mortgage balance of 70-80k, does the balance have to be a certain amount ?
Thanks again for all your help,
 
Last edited by a moderator:
Hi Moon Light

Can you edit your post to provide the following information in this order for convenience

Lender
Amount of mortgage balance outstanding
Date you fixed
Period for which you fixed
Fixed rate
Term left
Breakage fee quoted
 
@Moon light

Quick response here. I'll do deeper analysis over the weekend if you supply data Brendan asked for.

It's very easy for me to tell someone else what to do with their money, so read in that context.

The 2nd part first. For mortgages, most banks have a stated minimum amount of 50k, with minimum term 5 years (there's nothing to stop you paying off early once you have it). In practice I'm not sure how much any banks actually want to take on small balances.

On the breakage cost, I understand you wanting to be just done with it. If you don't want to go down the route of challenging it, if I was you I'd only break the part I want to repay, and leave the rest. If you break it all, you're paying an annualised 1.7% to then have to borrow at 3% somewhere else. It's cheaper to leave the remaining balance where it is for the 15 months and then switch. This is assuming breaking half the balance will cost half the amount.

And finally, if it was me I'd challenge the break cost. Can you get them to confirm, preferably in writing, that the break cost is calculated in line with 2016 mortgage regulations? Unfortunately the CBI have hasn't issued specific guidance, so I'm working from the legislation. You should be able to challenge the fee to FSO, but I'm not sure what the process is in practice.
 
Thanks Brendan and Red Onion again, ye are very helpful with all of your information,
Here are the details:

Lender - Dilosk
Amount of mortgage balance outstanding 141k
Date you fixed - Oct 15
Period for which you fixed - 3 years
Fixed rate 3.5%
Term left - 21 years (Missed out on a tracker by 1 mth even though broker advised us we would get tracker, that's another story !!!!)
Breakage fee quoted - €3467 - (This has come down from the 4.4k figure I was quoted 4 mths ago)

Not sure if this is relevant info but current LTV is 25%, and if we were to pay half or near half of the 141k off, LTV would be about 12 or 13%,


Red Onion - I did ask them to provide in writing to me a cost to break part of the balance and a cost to break all and I also asked them to explain their rates on the equation but they didn't provide either to me, The only info they sent back was the breakage fee of €3467
I will call them again and request this info and I certainly will do my best to challenge them on this,
Let me know if you need any further info,
Tks again for all the help,
 
Just following up on my last post - Have been onto Dilosk asking them to explain their fixed rate equation and I got back the following info:

A(Current Balance) €141k

R (Cost of Funds)2%

R1 (Deposit Rate)0%

D (Days between Fixed rate end date 30/09/2018 and Todays date 11/07/2017) 446


C = A x (R%‐R1%) x D

365


C = €141k x (2%‐0%) x 446

365

C= €3,468


Lender - Dilosk
Amount of mortgage balance outstanding 141k
Date you fixed - Oct 15
Period for which you fixed - 3 years
Fixed rate 3.5%
Term left - 21 years
Breakage fee quoted - €3467 - (This has come down from the 4.4k figure I was quoted 4 mths ago)


I asked them to confirm that the break cost is calculated in line with the 2016 mortgage regulations,
but they didn't reply to this part,

Can you please advise me further on this, annoys me so much to see other banks charging nothing to break out of a fixed rate or a tiny fee and yet they are charging almost 3.5k ....tks a mill,
 
Moon light said:
Just following up on my last post - Have been onto Dilosk asking them to explain their fixed rate equation and I got back the following info:

A(Current Balance) €141k

R (Cost of Funds)2%

R1 (Deposit Rate)0%

D (Days between Fixed rate end date 30/09/2018 and Todays date 11/07/2017) 446


C = A x (R%‐R1%) x D

365


C = €141k x (2%‐0%) x 446

365

C= €3,468


Lender - Dilosk
Amount of mortgage balance outstanding 141k
Date you fixed - Oct 15
Period for which you fixed - 3 years
Fixed rate 3.5%
Term left - 21 years
Breakage fee quoted - €3467 - (This has come down from the 4.4k figure I was quoted 4 mths ago)


I asked them to confirm that the break cost is calculated in line with the 2016 mortgage regulations,
but they didn't reply to this part,

Can you please advise me further on this, annoys me so much to see other banks charging nothing to break out of a fixed rate or a tiny fee and yet they are charging almost 3.5k ....tks a mill,
Click to expand...
They're having a laugh!
I'll respond properly later.
 
Hi Red Onion and Brendan - Thanks so so much for all of your help, Dilosk got back to me letting me know that I CAN break out of the fixed rate 13 mths early, am delighted, They have waived the fee as they feel I am a "unique" case !
Still annoyed over the fact that they should have let me break out 12 mths ago when I wanted to,
Love this website, so so helpful and informative, Thanks Red Onion and AAM.
 
Hi @moonlight

Happy to have helped you get this far. In case anyone looks at this thread, there has been a lot more going on in the background to get to this point!

There is nothing unique about your case - as @Sarenco and I have been saying the Mortgage Credit Directive gives huge powers, and I'm delighted to have been able to help in a real case.

Next steps for you? Luckily you went through a formal complaints process, so you can bring it to FSO, armed with the response you got stating that Dilosk were applying the incorrect basis for break fee calculation.

I've never gone to FSO with anything, but maybe others could help from here.

Red.
 
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