how to calculate compensation if I change fixed rate on existing morgage

A

athene_niu

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I have sent my request to fixed my mortgage for 2 years on rate 3.25% around 25/05/2017 by post, but got nothing confirmed in around one month, then I noticed the interest rate reduced to 3%. I thought my letter may get lost in the freepost:) So around 15/06, I sent the online application to ask change my rate to 3%. Then I got feedback on 19/06, saying my fixed rate 3.25% starts on 19/06, (I felt very bad about the application seems only got approved after one month and I missed the rate reduction.)
Now if I want to switch, I have to calculate the compensation, anybody know how to calculate it ?
the mortgage number is :370k, 2 years, previous rate 3.25%, new rate 3%.
should I use this : 370k*(3.25%-3%)*2 ?

Thanks for your help in advance. By the way, is there a cooling period for fixed mortgage ? :)
 
If you are asking what penalty to break the 3.25% fixed then you will have to ask the bank for the amount, they will have their own formula and it may not be remotely like what you are using.

Never heard of a cooling off period for fixed rate mortgages.
 
in 2015 i signed up 3 yrs fixed at 3.6 % now thjats reduced to 3% i have to wait till october 18 to either switch or fix again at 3% or wjatever the fixed rate is then. I was very annoyed as i think the rate lowered shortly after i fixed for 3 yrs at 3.6% which at the time appeared a good deal from 4.5%..I can understand you are annoyed but if you break your fixed rate it may cost you more than paying the 3.25% rate for 3 yrs,,just saying
 
OP, do you have online access to mortgage to confirm the rate they've actually applied, and from which date?
 
athene_niu said:
I don't have online access to it , seems not finding where to apply online banking for mortgage in boi
Click to expand...

Some banks systems would automatically apply the rate applicable at the date of change. It might be different because of the advance notice.
No idea of your rights, but If it was me, I'd be asking the bank why they applied a higher rate than was available at the date they applied it.

By the way, to add you mortgage online for future
https://www.bankofireland.com/help-centre/faq/can-add-accounts-view-365-online/
 
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