Getting out of a fixed rate mortgage

J

JEMOL

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How easy is it to get out of a fixed rate term?
I have 2 separate mortgages on 1 house.
One has 1 year left on a fixed rate and the other is finishing a fixed rate term now.
I would like to combine the 2, pay off part of them with a lump sum and then go on to a Tracker rate for the remainder.
If I am willing to change bank to get a better deal, how likely are my existing bank (BoI) to agree to this to keep our business?

Thanks
 
JEMOL said:
How easy is it to get out of a fixed rate term?
Click to expand...
Simple as far as I know - but it may well cost you. Check the terms & conditions of the loan agreements to see what sort of penalty clauses apply.
I have 2 separate mortgages on 1 house.
Click to expand...
How/why did you manage that - two mortgages on one property? I always assumed that only one lender would allow a mortgage on a property at any one time? Maybe it's different when they are with the same lender or something?
 
I also have 2 mortgages on the one property, apparently its very common now. I sold an apartment so that mortgage transferred to my new home and I have another mortgage on the same house for the difference between the mortgage on the apartment and the mortgage on my new house. I also thought this was strange but the bank said that it is not unusual and when I was applying for my tax relief I was told that this is rather common practice.
 
I recently cleared an AIB 5yr fixed mortgage at 3.8% (unfortunately I could not hold onto the loan at this rate when moving to a different house). I also moved from AIB to another mortgage provider.

There was no getout fee for clearing the fixed mortgage with AIB as prevailing rates are now higher

quote from AIB website: "An early breakage cost will always be payable by the customer where the fixed interest rate for the unexpired fixed interest rate period is less than the fixed interest rate applicable at the start of the period; no early breakage cost will arise where the fixed interest rate for the unexpired fixed interest rate period is equal to or higher than the fixed interest rate at the start of the period or during any period in which a variable interest rate applies to the mortgage loan."
 
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