Paying off portion of fixed mortgage - Penalty fees with different banks

machalla

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100
I'm currently looking at switching away from EBS at a 3% fixed rate which has come to an end now. This would be for a >80% <90% LTV mortgage.

I'm looking to get a fixed rate for a period of 4-5 years. The two best rates I can get are Ulster Bank and KBC.

Later in the year I may have a lump sum that will allow me to pay off about a third of the new mortgage.

I can't seem to find much info so far on which banks will allow you to pay off a lump sum on a fixed rate mortgage without penalty.

If anyone has any particular experience with any of the banks on this I'd appreciate hearing about it. EBS have said they don't have any rules around that at the moment but it may change in the future.
 

Dauhee

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UB allow 10% of loan amount
BOI allow extr 10% of monthly payment
PTSB may allow unlimited extra if you ask nicely!

In saying that, in current market break fees are near 0 anyhow

If rates were going to go up, you could ask for variable portion on mortgage and use lump sum for that

The main thing is, make sure you switch from EBS :)
 

RedOnion

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From key post


Can I Overpay without a Penalty?
A question that pops up in a few threads discussing fixed rate mortgages is whether or not you can overpay during the fixed rate term before the bank check if a break fee is payable.

From what I can gather each of the banks rules are as follows (any corrections welcome).

I have based this on each Banks Terms & Conditions. I won't comment on whether the banks system / processes can be circumvented as these system failures cannot be relied upon:

AIB: No early repayments allowed without checking break fee

Bank of Ireland: The greater of EUR65 or 10% of normal repayment each month. However, this is done by increasing monthly repayment, and can’t be paid in as a lump sum. There are examples on AAM of posters who have set up a monthly overpayment, while on variable, being able to continue this once they have fixed, and got confirmation from BOI on same.

EBS: No early repayments allowed without checking break fee

KBC: 10% of the initial balance can be repaid early at any stage during the term without incurring a break fee. This is a cumulative limit of the fixed term, so if for example you have fixed for 5 years, and you overpay by 10% of the balance in year 1, that's your limit used up for the 5 years.

PTSB: No early repayments allowed without checking break fee

Ulster Bank: 10% of the balance at the beginning of the calendar year can be repaid each year without triggering a break fee calculation
 
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HollowKnight

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134
Just to further the point above for UB - they allow 10% over-payment each year during a fixed period on the total of that year.

e.g. you have 200000 on 1/1/19, you can pay up to max 20000 in 2019.
Let's say with your regular payment and the 10% over-payment, you have 170000 left on 31/12/19.
On 1/1/20, you can then pay additional 17000 that year etc.
 

lledlledlled

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180
If you are likely to be able to pay off one third with a lump sum, it sounds like you should have a split mortgage, one third variable, two thirds fixed.
I have something similar to this with kbc at the moment.
 

machalla

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100
Thank you all again for the useful and helpful suggestions here, much appreicated. The split mortgage idea sounds like it might have potential for me in this case. The timing around any potential lump sum will be uncertain.
 
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