Lucylu2021
New Member
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This seems very high.
As I said before the mortgage documentation should explain how the breakage penalty is calculated so even if it's considered high there should be no confusion or opacity about how it's arrived at. The basic formula seems to be outlined here but there may be more detailed info in a specific borrower's mortgage contract/documentation?That does seem high.
The formula is set out, but most people would not have access to the interest rates necessary to do the calculation.
Of course, she could ask to see how it's calculated so she could check the figure.
Brendan
B = (W - M) x T / 12 x A, where:
B = The Break Funding Fee.
W = The Wholesale Rate Prevailing at the date of the existing fixed rate applying to the loan was set.
M = The Wholesale Rate prevailing at the switching/redemption date for the unexpired time period of the Fixed Rate Period.
T = Period of Time in months to the end of the Fixed Rate Period.
A = Principal amount which is subject to the existing fixed rate and which is being switched or redeemed.
‘Wholesale rate’ means the rate per cent per annum which the Lender determines to be the market rate applying to an appropriate interest rate swap for the relevant time period.
But I have no idea what W and M should be.
Payslip is late again this month!That is what we employ Red Onion for
Thanks. Yeah, I will be requesting it. Was just hoping someone here might know the rates. Weighing up some options.Kbc don't publish wholesale rates but if you request a redemption figure they will post you put a breakdown within 7-10days.will give break fee. It's only valid for 10 days
Your break fee should be c. 1,500Can anyone tell me what kind of fee I could be looking at with KBC? Fixed for 5 years in December 2019. €165k left on mortgage. Not sure where to find the wholesale rates.
Thanks. I'll request the cost from them this week. Thinking of switching to AIB or Avant. 1500 is not too bad if it's around that.Your break fee should be c. 1,500
Swap rate 16th Dec 2019: -.19%
3 year rate now -.46%
You'll need to get exact rates from your bank
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