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

Discussion in 'Mortgages and buying and selling homes' started by Brendan Burgess, 24 Jul 2017.

  1. Alpha20

    Alpha20 New Member

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    9
    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?
     
  2. RedOnion

    RedOnion Frequent Poster

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    2,588
    @Eoghan
    Thanks - I knew this came up before, but I couldn't remember who.
    The letter is obviously not clear enough.

    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.
     
  3. Alpha20

    Alpha20 New Member

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    9
    Just my luck! That'll teach me not to procrastinate!
     
  4. Alpha20

    Alpha20 New Member

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    9
    Last edited: 18 Feb 2019
    @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
     
    Last edited: 18 Feb 2019
  5. RedOnion

    RedOnion Frequent Poster

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    2,588
    @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
     
  6. Alpha20

    Alpha20 New Member

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    9
    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.
     
  7. RedOnion

    RedOnion Frequent Poster

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    I'll check interbank rates later for you. On mobile at moment.
     
  8. Alpha20

    Alpha20 New Member

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  9. RedOnion

    RedOnion Frequent Poster

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    D'oh! I need to learn how to count!
     
  10. Okokokoknic

    Okokokoknic Registered User

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    6
    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
     
  11. yupyaboyo

    yupyaboyo Registered User

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    12
    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.
     
  12. Castaway

    Castaway Registered User

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    9
    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...
     
  13. RedOnion

    RedOnion Frequent Poster

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    2,588
    @Castaway
    Just wait, your solicitor will request a redemption figure close to the close date and it will include a break fee. It'll be small that close to end date.
     
    Castaway likes this.