Switch Bank while on a fixed rate

T

Techhead1

Registered User
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19
Im into year 2 of a two year fixed rate due up next March.

Will I be penalised by the bank if I switch bank while on the fixed rate?

With EBS.


From their website it doesn't mention anything about a penalty when switching bank.

  • An early redemption charge is payable in the following cases where the fixed rate period has not expired:
  1. If a capital payment or full repayment is made to the loan, including an involuntary/voluntary payment from a third party source e.g. a payment from a Mortgage Protection policy; or
  2. If the loan is converted to a variable rate; or
  3. If the loan is converted to another fixed rate.
 
in a nutshell, yes, and with 10 months left to run, it'll probably be quite a bit - it would fall under No 1 as when you switch you will effectively be making full repayment of the loan back to EBS
 
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