Are there penalty fees for paying off mortgage in full early?

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Petal

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Hiya, I was wondering if there are fees/penalties involved in paying off a (tracker) mortgage in full early? I could not find anything in the original loan papers or on the bank's website (PTSB).
 
Nope! No penalty. Tracker is the same rules as a variable rate mortgage usually for early redemption. And usually only breaking out of a fixed rate may incur a penalty
 
You shouldn’t fully redeem the mortgage but see if you if you can leave a nominal balance of say €100.

That way the bank has to keep hold of the deeds at their expense and if you ever need to borrow money in the future, you’re an existing borrower with a mortgage.

Would cost you about €5 a year. How much is a safety deposit box to rent?
 
Genuinely curious, how do you do that? Do you pay most of it and then don't reduce the term of the mortgage? Planning to pay off in the next few weeks.
 
Wow, thanks for all the replies, I thought surely they'd try to recoup some of the interest they'll be losing out on
 
azerty said:
Genuinely curious, how do you do that? Do you pay most of it and then don't reduce the term of the mortgage? Planning to pay off in the next few weeks.
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It’s years since I worked in a bank but we used to encourage borrowers to do this. If nothing else it’s a massive pain to return the deeds. I’m not sure if it’s still relevant today but it’s worth considering.

There are 2 separate systems for recording property transactions in Ireland:
  • The registration of title system (Land Registry) which provides a State-guaranteed title to property
  • The registration of deeds system (Registry of Deeds) which records the existence of deeds and conveyances affecting property
A title is the ownership of a property and a deed is a written document that affects property.
Both systems are mutually exclusive. Your solicitor will know which of the 2 systems is relevant to your case. Both systems are under the control and management of the Property Registration Authority (PRA), an independent statutory body set up under the Registration of Deeds and Title Act 2006.



Registry fees on the discharge or release of a mortgage are €40 so at the very least you could avoid the discharge fee.

Ask your Bank if they’ll let you do it? They can only say no.

The main reason my clients did it was if they ever wanted to buy a new car they could take a fixed rate loan secured on the debt free house rather than a car loan.
 
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Marc said:
You shouldn’t fully redeem the mortgage but see if you if you can leave a nominal balance of say €100.

That way the bank has to keep hold of the deeds at their expense and if you ever need to borrow money in the future, you’re an existing borrower with a mortgage.

Would cost you about €5 a year. How much is a safety deposit box to rent?
Click to expand...

PSTB have a fee for returning your deeds , so you just have to not pay that.
 
Marc said:
You shouldn’t fully redeem the mortgage but see if you if you can leave a nominal balance of say €100.

That way the bank has to keep hold of the deeds at their expense and if you ever need to borrow money in the future, you’re an existing borrower with a mortgage.

Would cost you about €5 a year. How much is a safety deposit box to rent?
Click to expand...
I do like that idea Marc.
 
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