Reduced rates & fixed penalties

C

Caramc

Registered User
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3
Hi,

I'm sure this frustration is shared by others but those on fixed term mortgages are excluded from taking advantage of the recent drops in mortgage rates.

I'm on 1 year into a 5 year fixed with KBC but they won't let me avail of their new 5 year fixed without paying penalty. I've tenuously threatened to switch banks if I need to pay a penalty but it hasn't changed their tune. Is there anyone with an experience of getting out of a penalty with KBC? It seems unfair the current customers are excluded from advertised rate drops.
 
You're also protected against any increases for the next four years.

You basically took out an insurance policy against rate increases and that has a cost.
 
Of course you are excluded from just moving out of your fixed rate. The pro's of a fixed rate as said is you are protected against rate increased. When there is a rate decrease you can't just be included in new rates. Then everyone in the country would fix for 35 years if they could..
 
If you give the details such as the mortgage amount and the amount of the fee, you might get some suggestions.

Brendan
 
Have you been given the breakage fee? It’s not identical to your situation but I am 6 months into a 4 year fix with ulster bank and because the interbank rate has increased if I were to break today there would be no penalty.
There is a key post on this topic, wealth of information there.

Key Post - It may be much cheaper than you think to break out of a fixed rate early...

Many lenders have reduced their fixed rates Many people regret fixing at higher rates a few years ago. Many people think that because they have some time to go in their fixed rate, they cannot switch to another lender and get a lower rate or 2% cash back. However, since 2016, lenders can no...
www.askaboutmoney.com
 
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