Switching Mortgage provider 'Brokerage Costs'

[speculative]

Am planning to switch provider in the very near future. We've been through the very brief 'Can you match ...' phase and we're sure we're walking away. The new mortgage provider covers the legal costs associated with a switch but my question is can my current provider impose what have been described as 'Brokerage Costs' on us ?

We're going from a fixed term to variable rate in a couple of weeks. The plan is to instigate the switch following this transition.
We've been with PTSB and are planning to switch to Ulster Bank.

Has anyone experienced such costs ?
Thanks

 

[Glazer FC]

There should be no penalties for paying-off a variable rate loan, but they may impose a redemption charge, which should be detailed in your mortgage paperwork.

 

[Molly]

'Brokerage Costs'

.. are you sure you heard them right? never heard of this. Did they mean maybe break out cost? assuming you wanted to switch before your fixed rate matured?

 

[speculative]

the term 'brokerage costs' was used by a couple of people I know that mentioned I should watch out for these when switching.
My thinking was along the lines of that if we're on a variable rate there would be no charges for switching provider but Im wondering if there are some .. as per reply .. 'redemption charges' ... I would have thought these would be anti-competitive or over restrictive to the customer

I could always just ask my current provider but Id prefer to have as much info as possible before I shake that particular tree ...

 

[Molly]

'redemption charges'

a redempion charge is only applicable if you are in a fixed rate. Some lenders claw back discounts / free fees if you switch your mortgage witihn a specified time after taking it out. you need to check the original terms and conditions of your PTSB mortgage offer.

if you are on a variable rate mortgage there should not be any charge, fee cost or penalty for switching.

 

[CCOVICH]

I'm pretty sure they are referring (or mean to refer to) to 'breakage costs' which refers to any penalty on redeeming a mortgage before maturity.

Fixed rate mortgages would be expected to carry breakage costs, for variable rate mortgages, it could vary,

INBS were recently brought up on charging unfair breakage costs-I don't know if breakage costs on variable rate mortgages are illegal, but it is probably illegal for them to be excessive.

Your first point of call should be to read the loan agreement.

If the term 'brokerage cost' is accurate, all I can think that it refers to is a fee to cover the commission the bank would have paid the broker used (if any) when the mortgage was taken out, but I'm not sure if customers are ever held liable for these.

Again, this should all be detailed in the loan agreement.