Fixed rate breakout - Advice needed

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Pope John 11

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I have a loan of €55,000 with KBC Bank at the moment for a property on my own site, which is only built to roof level, windows installed.

I was hoping to come off the fixed rate to a vaiable rate of 3.99% offered by KBC. A breakout penalty of €610 applies.

1. Are there any other best rates on offer, I see AIB offer 3.3%.

2. What steps do I have to take to get the house valued etc, considering it is only half complete, if I have to change over & how long would it take?

3. I see interest rates are set to come down again. Based on the above is it best to come out of the fixed rate now or after the new rate comes in?

Appreciate any comments
 
Best to come off before. Otherwise your penalty to break will increase.
 
PaddyW said:
Best to come off before. Otherwise your penalty to break will increase.
Click to expand...

I was thinking that alright. What steps would I have to take.

Is it best for me to come off the fixed rate now, go variable with KBC at 3.99% & change to AIB later for the lower rate, ie until all paperwork is sorted?.
 
Yes, come off of it now, before the rates decrease again. You'll be switched to variable rate. You can then contact AIB in regards to changing. They offer 1200 euro towards legal fees also. I have a contact in AIB who looks after mortgages. If you would like it, please PM me.

I do not work for AIB and am in no way connected to them. Other than having a friend there!
 
PaddyW said:
Yes, come off of it now, before the rates decrease again. You'll be switched to variable rate. You can then contact AIB in regards to changing. They offer 1200 euro towards legal fees also. I have a contact in AIB who looks after mortgages. If you would like it, please PM me.

I do not work for AIB and am in no way connected to them. Other than having a friend there!
Click to expand...

I will post you in less than one hour, just trying to work at present
 
Paddyw, I have just pm u. I assume that there is no penalty charges for changing variable to variable...I have never had the need to check this before.

Can you comment on what steps I would need to take to change over, valuation etc.
 
To move from one lender to another (variable to variable) is the same as taking out a fresh mortgage. There will be solicitors fees. Some lenders will help towards legal fees. BOI and HAlifax say on their web sites that they will pay upto 1000 towards fees. AIB don't seem to advertise the fact - but it appears that they also do the same.
Legal fees could cost from 1000 to 2000 - depending on who you use.
 
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