first active fixed rate penalty

G

giblet

Registered User
Messages
23
Hi,

I contacted First Active to get an idea of the penalty for coming out of my fixed mortgage. She said it was 6 month interest penalty, approx €6500 for me. End of story. There was no calculation or mention of when my fixed term expires. This sounds excessive, I'm going to review my contract details but has anyone had similar experience from First Active ?

Thanks !!
 


You are in an unfortunate position. if you took out a fixed rate when rates were still rising and tried to get out during that rising period. some banks may have waived the penalty. Rates are dropping, banks are cash strapped and will squeeze every penny out of everyone to get what they need. The last 12 months or so have seen unforseen changes which no one could really predict.
what rate are you on at the mo
 
Giblet,
You need to check your loan offer. If it says that penalty to break out of a fixed rate mortgage is 6 months interest then unfortunately you will either continue with the rate or pay to get out.
Spin
 
Thanks for the response. Its not all doom and gloom, I'm on a 2yr 5% fixed until sept '09. Which will work out ok, considering the rates were higher for the first year of the 2 yr fixed term. I was just amazed when I heard the cost of paying the redemtion penalty. I'll toddle home and check my contract.

Thanks again
 
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