Pay off money on a fixed rate. BOI mortgage.

G

Galego

Registered User
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56
Hi,

I currently have a mortgage (165k) with bank of ireland with a 2 year inrtest rate coming to an end this April 17.
I was cetrained that I was going to switch to AIB (or any other) for a lower variable rate as I want to make extra payments at the end of each year.

Anyhow, I rang boi this morning out of curiosity to find out the penalty fee for paying off 30k on my loan. To my surprise they replied 41eur and 232eur.
This sounds to me extremely cheap!!

Is it always this "cheap"?

Now I am reconsidering the switch to other bank if paying off amounts in a fixed works out this low.

What do others think? Anyone else out there has to pay off amounts on a fixed rate? How much have you paid in penalty fees?
 
You are not giving enough information Galego for anyone to give a meaningful response. Maybe try the makeover thread, there are ideas for the type of info required.
 
cremeegg said:
You are not giving enough information Galego for anyone to give a meaningful response. Maybe try the makeover thread, there are ideas for the type of info required.
Click to expand...
I really thought I gave all the info.
Outstanding mortgage 168k.
32 years term left.
Fixed to 2 years at 3.8% till April 2017.

I paid off 30k this week. Penalty fee was 40eur. Paying off the whole 168k would have cost me 232eur.

Any thoughts how so "cheap"?
 
Last edited:
Its because you are coming close to the end of your fixed term. Its only a few months to April 2017. The calculation they use is based on the amount of time left on the fixed term.

It would cost you much more if you wanted to do this 12/18 months ago.
 
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