Key Post It may be much cheaper than you think to break out of a fixed rate early...

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BigSwitcher22 said:
Hi,
Wondering if you guys might be able to help me calculate the fee for me. Have tried UB numerous times but struggling to get a reply or a straight answer.

5 year fixed in June 2019 @2.8%
€325,000.
€1227 monthly.

~€310,000 remaining. Fixed term runs until June 2024.

When did you fix (month and year)? Jun-19 (5 year)
What is your monthly repayment? €1,227
Outstanding balance? 310k
What is your property worth? 490k
What is your BER?
Click to expand...
You break fee should be zero.

Do you have a spare €15k to pay off your mortgage now? Or do you think your property might be worth €517k or more? Or some combination of the two? If so, you are eligible for Avant's 1.95% rate (LTV less than 60%).

As it stands, you are eligible for Avant's 2.05% rate, fixed for up to 7 years.

If you start the switch to Avant before the end of March and use a broker who is a "Gold Partner", you will get €1,500 cashback.

(Getting the 1.95% rate will save you an extra ~€310 per year versus the 2.05% rate. Not worth overstretching yourself financially by making a large (€15k) overpayment if you can't really afford to.)
 
Paul F said:
You break fee should be zero.

Do you have a spare €15k to pay off your mortgage now? Or do you think your property might be worth €517k or more? Or some combination of the two? If so, you are eligible for Avant's 1.95% rate (LTV less than 60%).

As it stands, you are eligible for Avant's 2.05% rate, fixed for up to 7 years.

If you start the switch to Avant before the end of March and use a broker who is a "Gold Partner", you will get €1,500 cashback.

(Getting the 1.95% rate will save you an extra ~€310 per year versus the 2.05% rate. Not worth overstretching yourself financially by making a large (€15k) overpayment if you can't really afford to.)
Click to expand...
Thanks Paul,
I wasn't expecting it to be zero. That's brilliant news.

The 489k is based off the indexed value through Ulsterbank (we have put money into house since the original valuation, so it is possible it's higher). We wouldn't be in a position to pay off any lump sums.

Thanks for the information!
 
Hi All,
Just wanted people's thoughts on my situation. Whilst not a frequent poster I always value the opinions of the good folks on this site.
Almost 3 years into a 5 year fixed term mortgage with KBC.
Interest rate is 2.65% and 23 years and 8 months remaining on the mortgage (we made a couple of overpayments last year).
Keen to move away from KBC seen as they are pulling out of Ireland and the likes of Avant have a very good interest rate of 1.95% which we would like to get in on (plus we qualify for the 1,500 towards legal costs).
I have sent all the necessary documents to our mortgage broker and hoping to have the AIP from Avant within 2 weeks.
Over the last few months I have been phoning up KBC for breakage fee quotes.
I was quoted just over 2k on the 1st Feb, however, I then phoned them up a week later and it had dropped to 212 euro.
I was extremely tempted to break but my mortgage broker told me to hold off...I then rang them last week and it went up to 372.
I was quite annoyed it went up as even if it stayed around the 200 I would have paid it to break out of it.
Just wondering what people think...Should I just break and pay the 360 or hold off and hope it drops lower?
 
Hi Paul,
Property worth around 580k (we bought it for 440k but had to pour 50k into it as was in bad shape)...still waiting to the it valued but a house down the road sold for that recently.
We got the keys to the house on 13th March 2019 so presume that was the 1st day of the contract? I can phone KBC to double check?
BER rating is C1
 
@Blue Hero Your break fee will be about as volatile as this graph. As the rate goes up your break fee comes down, and vice versa.

Anyway, I few hundred quid either way is nothing in the grand scheme of things. And given that switching takes some time, you can't really time your break fee.

You should be starting the switch to Avant ASAP with a broker who is a "Gold Partner" so that you are eligible for the cashback.
 
ok thanks Paul...yeah leaning towards just breaking it but just wanted to see what others thought!!
Yeah we have completed the application and submitted all the docs to Doddl who are a Gold Partner.
They are excellent, dealt with them when getting our first mortgage as well.
Solicitor has gone out to KBC regarding title deeds.
Doddl said AIP takes 2 weeks so should have that by the end of next week all going well!
 
This thread has become a bit unwieldy. Please ask any more questions on break fees in this new thread

Key Post - Switch or re-fix my mortgage? Breakage fee calculator and savings estimates for your case (Ireland)

I am creating this thread as a place where people can request guidance on whether they should switch their mortgage to another lender (also called mortgage refinancing or remortgaging) and, if so, which lenders and interest rates they might consider switching to. You are allowed to switch even...
www.askaboutmoney.com
 
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