PTSB Fixed rate break fee

N

netman

Registered User
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Looking for some advice pls. Have 192K remaining on mortgage with 17 years remaining. LTV less than 60%. Currently on a 10yr fixed rate of 4.5% with 2.5 yrs remaining. PSTB quoted me over 13K to break out of this fixed rate. Another factor is I have a lump sum of 50K I wish to potentially pay off the mortgage. With some keen fixed rates about I wanted some advice as to whether I should consider breaking. Playing with a calculator looks like Id break even after the 2.5 years and then have added benefit of reduced overall interest also. All advice welcome.
 
It's not really worthwhile.

2.5 years interest on 192k at 4.5% = 21,600
2.5 years on 142k at 2.3% = 8,165

Difference 13,435, so not worth breaking in total.

What you could do is ask for a break fee for just the 50k. Should be under 4k, and you'll save more than that in interest.
 
By the way if you provide exact details of remaining fixed term, and your repayment I can do more accurate calculations later.
 
Thanks for the replies. Didnt know I could break just for the 50K. Can I ask how that would work? Would it come off the principal straight away or after the fixed term is up?
 
netman said:
Thanks for the replies. Didnt know I could break just for the 50K. Can I ask how that would work? Would it come off the principal straight away or after the fixed term is up?
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It should be straight forward. You tell them you want to repay 50k. They'll charge a break fee on that portion (about 3.8k), and the 50k will immediately reduce your balance so you'll save interest.
 
All you need to do is add the 50k as a credit on the account. You can’t ask for it back but the interest is calculated daily using cal cap which is the scheduled balance - credit. So calculated on 142k if you were to do that. You can take a break from the mortgage or Just leave it as a credit and in 2.5 yesrs get it taken off balance for nothing. Ring them to get details but I know this for a fact as in some boat as you took out 10 year mortgage at 4.5 huge break fees and nothing I can do except this...,
 
Lads i was in the same position with EBS 5.5 % fixed with 3 years left. About 23k to get out of it. I am currently doing the 3 switches for €6000 cashback each time with PTSB, BOI and EBS. All the info on the switcher page. Only way to go. You will make money rather than having to pay the banks.
 
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