breaking out of a fixed rate ADVICE

M

m2gm

Guest
hi, im new to this site and am looking for advice. I am in a 5 yr fixed mortgage with nib at 5.20% on approx e350,000. i have approx 3 1/2 yrs left at this rate. the mortgage is for an investment property.

i want to break out of the fixed rate and go with a variable rate. i was thinking it would be best to go with AIB or BOI as they have passed rate cuts onto their clients.

Does anybody know what options would be available to me?
i know there is a penalty for breaking out of the fixed rate, does anyone have advice on this??

Are any banks offering to pay for legal fees, house valuation if you switch to them? will property valuation have effect if i change bank i.e. loan to value ratio?
 
You need to ask NIB what the penalty would be, that may change your plans as the banks seem to be quoting very high penalties to break the fixed termed mortgages.
 
thanks for the quick reply, ye they said would cost approx 10k??????
do you have any advice on the valuation issue, or if there is any support available due to the circumstances of the current economic crisis????
 
No lenders, to my knowledge, are offering a free legal switch on investment properties, you will struggle to find one that will even pay the valuation.
If you switch lenders, your loan to value will be calculated on the basis of the current value against the outstanding mortgage.
In order to switch the valuation will have to come in at upwards of €412,000.
 
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