Mortgage Fixed rate break

[Sujithadoor]

Hi I am planning to buy a house now and confused whether the interest rate will cone down or not. The current offer i have is for 4.3 from both PTSB and BOI for 5 year fixed. Will it be possible to break the foxed in between if the rates come down as i am hearing that there will be possible rate reduction gonna happen in 2024, if so any idea on how much will be the breakage cost after one year

 

[skrooge]

Hi I am planning to buy a house now and confused whether the interest rate will cone down or not. The current offer i have is for 4.3 from both PTSB and BOI for 5 year fixed. Will it be possible to break the foxed in between if the rates come down as i am hearing that there will be possible rate reduction gonna happen in 2024, if so any idea on how much will be the breakage cost after one year

Yes, you can break a fixed rate mortgage.

There may be a break fee. This will depend on market interest rates (not mortgage rates but the rates banks lend to each other). If those market rates have declined since you fixed they can charge you a break fee. For more on fixed rates and break fees seen:

Key Post - Understanding Fixed Rates breakage costs

Moderator's note: for anybody who is thinking of switching their mortgage (or re-fixing with their current lender), consider posting your mortgage details in the switcher thread (in the format shown in the first post). Someone will calculate an estimate of the break fee (if any) and of the...

www.askaboutmoney.com

Given you've not drawn down a mortgage, let alone fixed, it's not possible to estimate what a break fee would be. Perhaps to better understand the mechanics of how it works have a look at the following thread where break fee costs are estimated for existing fixed rate mortgage holders.

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

The other thing I might add is, just because ECB rates are expected to decline in 2024 doesn't mean it will be passed on by Irish lenders in a timely fashion, if at all.

 

[Otacon]

The current offer i have is for 4.3 from both PTSB and BOI for 5 year fixed.

PTSB variable rate is increasing to 4.7% next week (Jan 17th).
Ignore me, you are talking about fixed rates