Banks not charging penalty for coming off fixed

[kopkidda]

Seen as Irish Nationwide are not charging a penalty for coming off a fixed rate can anyone see other banks following suit?

 

[shootingstar]

i came off a fixed rate with UB but i also took a 6 month holiday/break from my mortgage in doing this. Was not penalised at all...

 

[Bronte]

i came off a fixed rate with UB but i also took a 6 month holiday/break from my mortgage in doing this. Was not penalised at all...

Can you give more details on this such as would you have reverted to a tracker when you came off the fixed rate?

 

[kopkidda]

Im not holding out much hope for banks allowing those of us who are on fixed to come off for free,cant believe that TD's etc and other media types havent been talking about allowing people to break out of fixed rates for free considering the times we are in!

 

[2009]

Nope not good for me, I am with IIB Bank now KBC ,checked and confirmed that they are sticking with the breakage fee from the fixed interest rate!. Mine is due to revert over in September, this is normal proceedure for the banks to revert the client over to a variable rate when finished the term of the fixed interest rate.

 

[clk230]

I have a 5 years fixed 4.89% mortgage with IIB, 3 years left with fixed rate and I was quoted just over €15K if I break out of the fixed rate!

 

[shootingstar]

Can you give more details on this such as would you have reverted to a tracker when you came off the fixed rate?

Break is due to finish sept 09. I'll go back onto my fixed rate then as far as i know. But i was not charged for breaking the rate for 6 months. I hope this helps.

 

[Senna]

Does anyone know how fixed rates actually work?
Does a bank buy a fixed rate at X% for the customer (obviously on large scales) and then makes repayments at that level even if the ECB (euribor) drops?
Or does the bank just offer these rates but borrows the money at what ever the daily rate is?

The question basically is, does it cost the bank anything to (other than higher profits) to let a customer out of a fixed rate?