Calculate breakage to switch

H

Humpty Dumpty

Registered User
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33
Can anyone help with this maths

I've 18 months of 5 year fixed left with AIB.

Rate is 5.2.

What will it cost to break this as I'd like to switch to KBC
 
Hi,

What's your balance? It will be 3% of the balance unfortunately.

AIB are the only lender that calculate break fee based on the rate the are charging customers.

In your case, the difference between 5.2% and 3.2% (their new rate). So 2% * 18 / 12
 
Roughly 2,580.
Basically once you move to a rate less than 3.2%, you will save money (although not a huge amount with current rates).
 
Plan to switch with KBC so the 3000 they offer will cover it and some towards legal fees. So, plus 130 or so a month on new rate
 
Gonna ring AIB tomorrow in this but just looking for thoughts, wonder if they'll make counter offer if I tell them I'm switching to KBC? with the 3,000 kick back from KBC for switching, I will cover my 2,500 breakage fee, I've found a solicitor who charges 450 plus vat for doing the switch, may have to put couple hundred euro out of own pocket but worth it.

You think AIB will counter offer, it's a very small mortgage and LTV at about 58%
 
Humpty Dumpty said:
I've found a solicitor who charges 450 plus vat for doing the switch
Click to expand...
Are you sure that's for everything, and not just his professional fee? I think it'll cost you closer to a grand in legal fees.

Humpty Dumpty said:
You think AIB will counter offer
Click to expand...
They might. I've heard of a handful of cases with other banks where they reduced the fee to let the customer refix for a longer period.
Your first step is to ask them what the break fee is and check my calculation!. It'll take a while to switch (maybe 6 - 12 weeks depending on how far you've advanced with KBC already), but doing a deal with AIB would be quicker if it's possible.

What would you choose staying with AIB though? Their variable at 2.75%, or fix again?
 



they state 450 flat fee plus vat and outlays? Direct Law solicitors

I'd rather stay with AIB

I'd rather go on variable, I want to over pay and it gives flexibility. I'm not to pushed on interest rate, with size and term of mortgage the difference won't be much anywhere between 3.2 and 2, 80 or so.
 
Ah, yes 450 is just professional fees. The outlays will be cost of registering charge with land registry. Someone else here might have an idea of costs involved, or otherwise contact solicitor and ask for a full quote.
 
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