What are the penalties and how are they calculated for paying a lump sum directly off the capital on a fixed rate mortgage? Do every bank calculate it differently or is there a formula.
We are in the process of securing a mortgage and looking at fixing with Ulster bank for 2 years at 2.3%. Issue is my partner is due to come into some money in the middle of next year (high 5 figure sum) when we should have already drawn down the mortgage. We hope to use this money to pay off some of the principle/capital of the property.
If the penalties for paying this during a fixed rate period are prohibitive we're unsure of whether going with a higher variable rate (2.9% with AIB) makes more sense to allow us to make the lump sum payment before possibly fixing at a later stage.
We are in the process of securing a mortgage and looking at fixing with Ulster bank for 2 years at 2.3%. Issue is my partner is due to come into some money in the middle of next year (high 5 figure sum) when we should have already drawn down the mortgage. We hope to use this money to pay off some of the principle/capital of the property.
If the penalties for paying this during a fixed rate period are prohibitive we're unsure of whether going with a higher variable rate (2.9% with AIB) makes more sense to allow us to make the lump sum payment before possibly fixing at a later stage.