Switching within the same bank.

B

Brandy

Registered User
Messages
39
Hi
I signed up to a 10 year fixed rate of 3.3% with a bank under my dad's advice before the virus thinking it was a good idea at the time.
Now I see my bank are offering a "green mortgage" of 2.2% which I would be eligible for but can't move or they are not offering to existing customers.
Am I stuck?
It would cost something like €19k to break out of my existing one. It's 50% LTV.
Any ideas welcome. Thanks
 
Ask them what your options are but almost certainly you'll have to pay that breakage fee to get out of the long term fixed rate early.
 
@Brandy What bank are you with?

Are you sure the green rate is 2.2%? I don't see any lender offering that green rate.

When did you fix (month and year)? What is your monthly repayment?
 
Apparently 2%according to bonkers.ie


Joined April 2019.

I just rejoined the same electricity group and got a discount. Pity banking doesn't work the same way.
 
Pity you didn't ignore your dad too...

So you're presumably with BoI who, with the 0.3% Green mortgage discount off their fixed rates, offer 2% in certain circumstances?
personalbanking.bankofireland.com

Mortgage Rates - Mortgages - Bank of Ireland

Find out more about Bank of Ireland Mortgage rates. Get better mortgage rates and the security of a Bank of Ireland mortgage
personalbanking.bankofireland.com personalbanking.bankofireland.com
 
@Brandy
  • Who is your lender?
  • What is your mortgage balance?
  • What is your monthly repayment?
Where did you get the break fee estimate of €19k? It seems impossibly high.
 
Brandy said:
Joined April 2019.
Click to expand...
Are you saying you fixed with BOI for 10 years in April 2019? My estimate says that your break fee should be around €5,600.

When did you request that break fee from BOI?

Are you sure you didn't fix in April 2018?

If you really did fix in April 2019, ask them for the break fee again and also ask them for the calculation and interbank interest rates that they used.
 
Last edited:
Yeah first mortgage repayment April 2019

I've asked a few times and it never seems to go down much.
They did send out the algoritihim / formula but must admit eyes glaze over.

I'll defo ring again.
 
Brandy said:
Yeah first mortgage repayment April 2019

I've asked a few times and it never seems to go down much.
They did send out the algoritihim / formula but must admit eyes glaze over.

I'll defo ring again.
Click to expand...
Can you post a screenshot of the formula here, and any numbers (interest rates) that they refer to?
 
Sorry now a bit backwards in the tech field tried to add screen shot no joy but gist is

A x (B% -C%) x D
___________________
365

A the amount you pay off early
B annual interest rate
C APR for depositing that amount
D number of days from early repayment to end of fixed rate

sorry couldn't attach it.
 
Brandy said:
Sorry now a bit backwards in the tech field tried to add screen shot no joy but gist is

A x (B% -C%) x D
___________________
365

A the amount you pay off early
B annual interest rate
C APR for depositing that amount
D number of days from early repayment to end of fixed rate

sorry couldn't attach it.
Click to expand...
Are "annual interest rate" and "APR for depositing that amount" the phrases that BOI used or are you paraphrasing what they wrote?

This page contains a section on BOI's break fee calculation and it includes the following:
If we suffer such a loss you must pay us compensation when we ask you to pay it. Such compensation will be equal to “C” where:

C = A x (R%-R1%) x D ÷ 365, and

“A” = the amount repaid early (or the amount for which the fixed rate is changed to a new rate) averaged from the date of early repayment (or rate change) to the end of the fixed rate period to allow for scheduled repayments (if there are any) and interest charges.

“R%”= the annual percentage interest rate which was the cost to us of funding an amount equal to “A” for the originally intended fixed rate period.

“R1%”= the annual percentage interest rate available to us for a deposit of an amount equal to “A” for a period equal to “D”.

“D” = the number of days from the date of early repayment (or rate change) to the end of the fixed period.
Click to expand...

Is that what your letter says or does it use different definitions for R and R1 (which are basically B and C in your formula)?

Did they tell you the values that they used for B and C in the above formula (the first formula)?
 
Paraphrasing.

B = the annual interest rates which was the cost of us lending an amount equal to A... on market for the original fixed rate period
C= the annual percentage rate available to us for depositing an amount equal to A.. On market for a period equal to D.

... Is because I cropped some words from photo and was looking at that.
 
I think it would be
€310,000 X (5% - 3.3%) X 2555
---------—--------------------------------------
365
2555 is 7 years. That's left.

B= interest rate for the cost of lending
C= Apr for depositing

I need to figure out how to attach screen shots ASAP!
 
@Brandy No, that's not right because that calculation gives a figure of €36,890

If you have a smartphone, you can take a photo of the letter (hiding your personal details). Then access this message thread on your phone's browser, create a new message and attach the photo(s).

@Brendan Burgess @Leo Is it possible to get attachment permissions for this thread? Thanks
 
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