# effects of breaking out of fixed rate mortgages



## goldie1 (7 Sep 2009)

hi
i have a mortgage with ptsb. i took it out in 2007 and had it fixed at 5.35%. stupidity i never read contract and didnt relalise that after fixed rate i would go to ecb +.8%. i broke out of fixed rate in jan and paid small breakout fee.
i assume this leaves the above clase invalid .

thanks


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## WaterSprite (7 Sep 2009)

If you broke out of the fixed rate, you would probably have been given a new loan agreement stating the variable rate you now get, along with the terms associated with that.  I would imagine that you would no longer be entitled to the ECB +.8% unfortunately but the terms of the loan doc will answer that question.  However, if your original loan agreement stated that when you finished with the fixed rate (either by its natural expiry or because of a break) then the ECB +.8% applied, then that's the rate you should be on.  You really need to check the documents you got from the bank to confirm.


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## goldie1 (4 Feb 2010)

hi i bumping this up again as i was given some information recently and i dont know if it is true or not.

on the original loan agreement the special condition stated " on expiry of fixed rate period the interest rate applicable to the loan will not be more than .8% over the ecb".

it does not state that to avail of the ecb +.8% that you needed to stay in fixed rate till the every end.

also when i rang and asked about implications of breaking out of fixed i received a letter stating exit fee but not stating anything about breaking the above condition.

i have been told that it is a legal obligation of bank to provide full implications of effects of breaking out of fixed rate.

so my question should i demand they give me a tracker or contact a solicitor, or do i have a leg to stand on?


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## Knuttell (4 Feb 2010)

Write to the PTSB outlining your position,you need to fully exhaust all avenues with your lender in this dispute before wasting money on Solicitors.

I know it sounds a waste of time but have you contacted the Financial "Regulator"?,might be worth a call,but take anything they tell you with a pinch of salt(I have been given very poor incorrect advice from them in the past) 

If all this fails,PTSB refuses to put you on Tracker then it is a case of the Ombudsman.

As an after thought was this mortgage arranged through a broker?if so contact him to seek clarity or resolution to this issue.

For whats its worth I am not 100% certain that you have a case but you may have,follow the above and see where you end up...


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## Brendan Burgess (4 Feb 2010)

> on the original loan agreement the special condition stated " on expiry of fixed rate period the interest rate applicable to the loan will not be more than .8% over the ecb".



Forget the Financial Regulator - they have no role to play here. 

This really is one for the Ombudsman. 

Your case is:
The fixed rate period ended when you closed out of it. 
If they don't accept this, they should have explained this downside of finishing the fixed rate early.

If they wrote you a letter at the time setting out the cost and explaining that you would be moving to a variable rate, this would weaken your case. 

Brendan


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## Bronte (5 Feb 2010)

Your first step is a letter to the bank.  Ask them why you have not been put on the .8 above ECB rate as per your original contract.  Make it simple and polite.


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## goldie1 (5 Feb 2010)

brendan you seem to know what you are talking about, honestly do you think there is any point going to ombudsman?

i have wrote to bank stating my case and was just told that when i broke out of fixed rate i automatically lost the right to revert to tracker. 

i think my main problem is i feel like they took advantage of my financial situation at the time as i had only 6 months left at fixed rate but was struggling to pay and on variable i was saving €100 a month so they knew i would jump at the chance. whereas now it is costing me €130 extra a month.


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## Brendan Burgess (14 Feb 2015)

Hi goldie

This thread is interesting as it shows how someone felt at the time.  Did you complain to the Ombudsman?


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