Move out of fixed term to viarable

D

docker

Registered User
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Hey,

Are there any options to move out of a fixed term mortgage product to a viarable mortgage to avail of cheaper interest rates?

Tks, Docker.
 
I rang aib today and they said there'd be no penalty for me to go from fixed rate (5.18%) to variable rate of 4.5%
 
I did the same with IIB bank yesterday and no penalty to move from 3 yr 4.79 to variable. But this will change tomorrow after the ECB cuts rates.

All the banks must use a set formula when canceling a fixed rate and details would have been on the document you signed. The formula is based on the rate on the day you cancel the fixed rate versus the rate you fixed at.
 
I am looking to change from a Fixed to a Variable with AIB, I have a fixed of 5.25 for 3years and they told that it would cost me 1163.59 to change to the 4.5% variable. How is this so when chrisboy is being charged nothing??
 
Tks. What happens if I was to move to another lender? Can my current lender charge me if moving the mortgage within a fixed term?
 
Beech Abby said:
I am looking to change from a Fixed to a Variable with AIB, I have a fixed of 5.25 for 3years and they told that it would cost me 1163.59 to change to the 4.5% variable. How is this so when chrisboy is being charged nothing??
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Banks can be open to negotiation on the penalty charges for breaking a fixed rate. This could be because the fixed rate is costing the bank more than the variable rate even though the fixed rate for the customer is higher than the variable. It can also depend on your loan size etc.
 
How would the fixed rate cost the bank more if it's higher than the variable Bronte?
 
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