Petition to axe exit fees

N

Natt

Registered User
Messages
32
Just spotted in last nights Evening Herald (P18) that a website petition has been set up regarding the REDICULOUS fees financial
insitutions are demanding for exit on a fixed mortgage.

From the article, the guy who has set up the petition was quoted €42,000 in fees to exit.

I contacted my lender (EBS) about 3mths ago and was quoted €25,000 to exit from the fixed rate.
BEYOND A JOKE METHINKS!!!!
 
It is ridiculous and beyond a joke for you to quote a fee of €42,000 or €25,000 in isolation. That information is meaningless without knowing the size of the mortgage, the fixed rate you were on or the length of time left on your fix.
 
Natt said:
Just spotted in last nights Evening Herald (P18) that a website petition has been set up regarding the REDICULOUS fees financial
insitutions are demanding for exit on a fixed mortgage.
Click to expand...

'Ridiculous fees' that are calculated according to the formula stated in your mortgage contract. Which you signed, making it a legally binding document.

Never going to happen.
 
Brendan said:
It is ridiculous and beyond a joke for you to quote a fee of €42,000 or €25,000 in isolation. That information is meaningless without knowing the size of the mortgage, the fixed rate you were on or the length of time left on your fix.
Click to expand...

I dont thinks its ridiculous and beyond a joke Brendan. Natt is 27 posts into AAM making her relatively new to all of this. Meaningless yes. She obviously felt the need to begin the thread in the first place. ill be surprised if she starts a thread like that again given the replies shes received from an admin!

I read somewhere in here ages ago that some posters were nervous about posting or starting threads because of what comes back at them. I too am one of those posters.


Natt perhaps you should give us more information regarding your mortgage and maybe someone on here will be able to clarify if what you have been quoted for exit fees are extortion

Unfortunately the link didnt open for me, probably my connection this morning...

Shootingstar
 
Op,

If you fixed at 4% , and interest rates went up to 6% would it be fair for the bank to charge you the higher rate ?
 
shootingstar said:
I read somewhere in here ages ago that some posters were nervous about posting or starting threads because of what comes back at them. I too am one of those posters.
Click to expand...

People should be careful in what they post. There is enough existing information on this site alone to do a bit of research on the topic before rehashing old arguements that have been done to death.

Anyone capable of starting a thread or posting a comment should be capable of doing a bit of background reading, especially on the site they're posting on.

This is an expert financial forum and treating people with kid gloves is no good for anyone.
 
Why do people get so offended about people asking to have fees to break out of fixed rates cut!!Appears to me some may have a vested interest or maybe its just plain selfishness, that people like to see other people suffer more then they are.

If someone wants to create a petition to abolish fixed rate fees then so be it!!
 

I don't agree. With any of this. Well, part from the last bit which anyone is free to do however rubbish I think the idea is given the baseless, nonsensical arguments most people who want to break out of rates post and put forward. There seems to be a random view that everyone who fixed should be allowed out of fixed rates.

This is a well moderated consumer financial site. Most of the posters post in a balanced and sensible way. Its important when dealing with consumers and finances to be balanced and sensible. Its important that consumers accept that they have choices, they exercise choice and, short of deliberate misselling ( which I don't think anyone is actually alleging), that they take responsiblity for their own actions. Toddlers are allowed to have tantrums. Adults are not.

Lots and lots and lots of CAPITAL LETTERS and !!!!!!!!!!!!!!!! exclamation marks are seldom the sign of balance and sense. I don't think you get many vested interests on the board and I don't think most posters are selfish. There may be the odd "oh, for goodness sake, get a grip, lads" which some people badly need as they happily float along in a cloud cuckoo land where nothing is ever their own responsibiity and surely there must be somebdy who can fix it.

mf
 
Let's pretend for a moment that these fees were abolished.
Well then it'd make perfect sense for everyone to fix their mortgage rate for the next 10 years. If the rate goes down, just exit free of charge, if it goes up, then great! - win-win situation (for the customer)
 


Because the banks are almost completed state funded, so we all pay.

People wanted to be protected from a rising interest rate, they got this.

Going back now is like walking into paddy powers the day after a match to change your bet.
 

+1

totally agree. I'm fixed, would love to get out, but I know I signed a contract and fully understand the implications on the bank for cancelling the contract.
 
This is just going to go around in circles as with the other discussions of the fixed rate penalties. Why not just leave the link to the petition for those who are interested and lock this thread?
 
jhegarty said:
Op,

If you fixed at 4% , and interest rates went up to 6% would it be fair for the bank to charge you the higher rate ?
Click to expand...

Exactly, if they just let people walk away from fixed rate then why would anyone choose variable, its just tough for people who signed up to fixed, that was the call you made now live with it. You had the benifit of your mortgage not going up.
 
I heard this guy on the radio about 3 weeks explaining his exact situation. What I found beyond a joke was that neither himself nor the presenter could comprehend how he was quoted a fee of 42K. "Sure that's 10% of the entire mortgage, how could you be charged that kind of fee!"

He had a mortgage of about 480K which he fixed last autumn for 5 years at around 5%.

Changing to variable would have given him a rate of about 3%.

He would therefore save 2% on mortgage interest.

2% * 5 years = 10% of the mortgage.

That's just back of a beermat calculations but any fool should be able to work that out.


He could see the final figure that breaking would save him on a monthly basis, "My monthly mortgage would go from X to Y", but couldn't translate that into the breakage fee.

I find it really really really alarming that people cannot calculate how much they pay over the duration of a mortage, that once it's broken down into bitesize chunks they can accept it, but cannot add up the chunks to see the final cost.

This issue comes up so often on this site and so many posters defend the OP's position. Is basic arithmetic so bad in this country that this is where we're at?
 
What do people think of this situation:
Fixed at 5.2% for 2 years. 1 year remaining.
Was told at the beginning that it would be 6 months interest to break it.
Should the breakage fee not be reduced if you're half way through?

Also I want to lodge a lump sum, not just go to variable and I've been told it would be 6 months interest to lodge into the fixed account.

It seems a bit unreasonable, particularly because when I fixed they reduced their fixed rate by 1% the next day. Ouch! (I do know that's just tough luck but it stung and the reason they made me fix was to ensure that I could afford repayments so it seems a bit sly of them).
 
Folks

If someone uses bad language or is abusive, report them by clicking on the red triangle on the post.

Do not respond to the post or quote it.

I have deleted 7 posts with bad language or quoted bad language.
 
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