Does the calculation of this breakage fee from KBC look correct?

Seve2020

Registered User
Messages
4
Hi all,
I am new to the website. Looking to move from KBC and have been quoted 4500 to break. Does this seems excessive? I have added the inter bank rate of drawdown and switching below supplied by KBC.
Any advise much appreciated.

Lender: KBC
Mortgage outstanding : €280k
Date i fixed: July 2017
Period: 5 years
Fixed rate :3.1%
Term left : 30 months fixed at 3.1%
Breakage Fee Quoted: €4500
Wholesale fixed at drawdown: -0.29
Switching/Redemption rate: -0.37
 
560 euro breakage fee if your figures above are correct for:

Wholesale fixed at drawdown: -0.29
Switching/Redemption rate: -0.37

(280000 * (-0.29 - (-0.37))) / 100 * 30/12
 
Thanks for the both of your replies. I think the fixed rate at drawdown may be a positive 0.29 like you said RedOnion but was quoted a minus by KBC at one stage (probably a mistake). If it was a plus would the calculation be as follows?

(280000 * (0.29 - (-0.37))) / 100 * 30/12 = 4620

Thanks in advance.
 
Yes, that looks correct.
Thanks for confirming RedOnion. I was quoted 3780 a few weeks ago think the change rate was -0.30. It has gone up a grand in that time. Do you think the rate will continue to go against me? I am eager to switch bank for a number of reasons.
 
Do you think the rate will continue to go against me?
My crystal ball is broken I'm afraid!

There's been a flight to safe assets with the Coronavirus, so interest rates have been pushed downwards over the last week or 2. They could stabilise or go lower. That's what's influencing your break fee.
 
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