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

Alpha20

New Member
Lucky you @Anthony7 I'm being quoted €2158, can't imagine between March and June 2016 the interbank rate changed that much, maybe something to do with mine initially been drawn down in 2014 and I fixed again in 2016?
 

RedOnion

Frequent Poster
@Eoghan
Thanks - I knew this came up before, but I couldn't remember who.
The letter is obviously not clear enough.

can't imagine between March and June 2016 the interbank rate changed that much,
It was more to do with when he broke. Anthony broke in October, and interbank rates have tanked since - flight to safety on back of stock market falls, and signs from Europe that rates aren't going to increase anytime soon.
 

Alpha20

New Member
@RedOnion As far as i can see the interbank rate only dropped by 0.01% since October 2018, figures i looked up were -0.21% in March 2016, -0.318% in October and -0.308% in January 19. Ref: tradingeconomics com
 
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RedOnion

Frequent Poster
@Alpha20
You need to compare 7 years rate in Mar 2016, to the current 3 year rate (remaining term)

It looks a bit high. Should be 155k X 0.4% X 3 years

0.4% is a quick estimate - I can't access exact interbank rates at the moment
 

Alpha20

New Member
4 Years left on my current Fixed rate so that would make it about right, 155k x 0.4% x 4 = 2480, I have edited my other post to remove the erroneous calculations.

7 year rate on 31st Mar 16 was 0.225 and 4 year rate 15th Feb 19 was 0.03 (theice_com_marketdata_reports_180), so on my calculation i got ~€918 breakage fee.
 

RedOnion

Frequent Poster
4 Years left on my current Fixed rate so that would make it about right, 155k x 0.4% x 4 = 2480, I have edited my other post to remove the erroneous calculations.

7 year rate on 31st Mar 16 was 0.225 and 4 year rate 15th Feb 19 was 0.03, so on my calculation i got ~€918 breakage fee.
I'll check interbank rates later for you. On mobile at moment.
 

Okokokoknic

Registered User
Lender: BOI
Value of property: €400000
Mortgage balance outstanding: €315000
Date of fixing: June 2018
Period fixed for: 1 years
Fixed rate: 3%
Fixed Term left: 4 Months
Breakage fee quoted - €190.

Was quoted 135 a month ago
 

yupyaboyo

Registered User
Lender: BOI
Value of property: €530,000
Mortgage balance outstanding: €360,000
Date of fixing: Oct 2018
Period fixed for: 1 years
Fixed rate: 3%, offering 2.9% for remaining 6 months
Fixed Term left: 7 Months
Breakage fee quoted - €230.
 

Castaway

Registered User
Hi,

I am in the process of selling my house with a proposed closing date of 24th May’19.
My mortgage with UB is fixed until July’19. I understand their will be a breakage cost. The sale proceeds will clear the mortgage balance in full.

My question is will I wait until my solicitor is redeeming the mortgage to break the fixed rate or should I request the breakage now? I am afraid it will delay the process if left until later...
 

kitkat275

New Member
Hi,
I took out a mortgage with PTSB in Dec 2014, I changed to a fixed rate 3.7% in November 2018 to reduce my monthly payments.
I have since decided to sell. My outstanding balance is €135,488.26
Original term 420 months, 369 remaining. Only 5 months into the 5 year fixed period.
I requested a redemption statement 10 days ago, haven't received it yet. Any idea what sort of breakage fee I could be looking at?
Thanks!
 

_ripped_off

Registered User
Hi, just wondering has anyone successfully challenged the breakage quotes from AIB and the way they are calculating them.
We are nearly 2 years into a 34 year mortgage which is split 50% variable (3.15%) 50% fixed (3.8%). Obviously we cant move half a mortgage to another provider but we are being quoted E2600 to break the fixed part of the mortgage.
Lender: AIB
Rough value of property (needed to assess if switching to another lender is advisable): 425,000
Amount of mortgage balance outstanding: Fixed portion 175,969.68, variable portion 174803.85
Date you fixed: May 2017
Period for which you fixed 5 years
Fixed rate 3.8%
Term left: 3 years exactly
Breakage fee quoted E2636.04 (*this was quoted at the start of February 2019 so may have reduced marginally since then)

I have requested an updated breakage quote but I expect it will be around the same amount so I'm not sure if its worthwhile to break the fixed mortgage and move the whole lot to another lender after solicitor fees valuations etc. Is the quoted breakage fee correct?
 

RedOnion

Frequent Poster
@_ripped_off
I don't agree with how AIB calculate the break fee. But I haven't really been able to successfully challenge it yet with anyone. The way they calculate it, the fee will go up from tomorrow as they reduce their fixed rates.

Using market rates, your break fee should be approx 1,800
 

Itchy

Frequent Poster
Hi, just wondering has anyone successfully challenged the breakage quotes from AIB and the way they are calculating them.
We are nearly 2 years into a 34 year mortgage which is split 50% variable (3.15%) 50% fixed (3.8%). Obviously we cant move half a mortgage to another provider but we are being quoted E2600 to break the fixed part of the mortgage.
Lender: AIB
Rough value of property (needed to assess if switching to another lender is advisable): 425,000
Amount of mortgage balance outstanding: Fixed portion 175,969.68, variable portion 174803.85
Date you fixed: May 2017
Period for which you fixed 5 years
Fixed rate 3.8%
Term left: 3 years exactly
Breakage fee quoted E2636.04 (*this was quoted at the start of February 2019 so may have reduced marginally since then)

I have requested an updated breakage quote but I expect it will be around the same amount so I'm not sure if its worthwhile to break the fixed mortgage and move the whole lot to another lender after solicitor fees valuations etc. Is the quoted breakage fee correct?
While the break fee is high, if you switch to Ulster Bank @2.3% fixed you will save €2625 (€175 x 1.5%) + €1485 (€175 x .85%). Still worth it despite the fee.
 

_ripped_off

Registered User
Thanks for the replies. I’ll await the updated breakage quote from AIB and go from there. Slightly off topic how likely is it that AIB will drop their variable rate?
 

daveyboy31

Registered User
Folks, probably crystal ball stuff here but anybody have any views on whether the rates used to calculate breakage fees are likely to rise anytime soon? Have a lump sum of €35000 to pay off on a 10 year rate (3.3%) with BOI. Mortgage taken out last July. Was holding out hoping that if there was clarity around Brexit, that may help with the rates but that can has been kicked down the road. Trying to decide whether to cough up. The fee today is €1300
 

_ripped_off

Registered User
Red onion. Just received an updated breakage quote of €4700 Approx. shocked to say the least. Still don’t know how they have calculated it exactly. That is proving difficult to confirm with them :mad:
 
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