Ulster Bank Breakage Calculation Understanding

[lexio7]

Hi

I am trying to get an understanding of how my bank calculates the mortgage breakage cost.

I am aware there is this super helpful thread:

Key Post - Switch or re-fix my mortgage? Breakage fee calculator and savings estimates for your case (Ireland)

I am creating this thread as a place where people can request guidance on whether they should switch their mortgage to another lender (also called mortgage refinancing or remortgaging) and, if so, which lenders and interest rates they might consider switching to. You are allowed to switch even...

www.askaboutmoney.com

However, I would love to be able to calculate the fee myself.

I have my mortgage with Ulster Bank. The break fee formula is:

Redeemed amount x (R - R1) x Time remaining in days until the end of the fixed rate period) divided by 360

My question specifically relates to “R”. The meaning of is:

R means the interest rate available to the lender for funds placed in the money market on the start date of the relevant fixed rate period for the duration of the relevant fixed rate period

Where can I see interests rates?

Thanks

 

[Paul F]

@lexio7 Resurrecting this thread to say that in the following post you can see a worked example of estimating a break fee, including a link to interbank interest rates (which serve as a proxy for Ulster Bank's R and R1 rates):

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

I got the breakage amount. €5510. Just wondering if anyone can figure out the formula that ulster bank use. Just want to see if they are just using the 6 month cap. Any advice greatly appreciated. Thanks in advance Ongar, Just wondering what product you're looking at moving too. We fixed in...

www.askaboutmoney.com