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!!!!
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?