Is it worth Breaking out of Fixed Rate.

R

ryan-neil

Registered User
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145
Hi,

Just looking for some opinions on this, Currently have 10k in Loans (7k personal / 3 k CC, repayment is no problem). Mortgage interest rate is fixed at 5.25% for another three years. Would it be worth breaking out of this fixed term and adding the fee to the capaital. Then refixing long term (maybe ten years) at a lower rate such as 3.8%. I not sure what it would free up monthly but should allow me to repay the personal loan earlier and then begin to save additional to money make a lump sum payment after a few years.

Good idea ? / Bad idea ?

Thanks
 
depends on whether you think interest rates will stay down and for how long against what get out fees you would have to pay,maybe you could have a look at historical int. rates on the net
 
im in the same boat, in a fixed rate for 2 more years. its not worth breaking out in my opinion. even if the ecb cuts rates to zero, banks wont give mortgages for anything less than 2.5 to 3% interest. AIB variable is alreayd near this level so banks wont pass on many if any more cuts. my breakage fee is 6000 and its not worth it
 
It could be very worth while to do this and really you just need to do the sums after you find out what the penalties are. The main thing to get the benefit if you are going to do it is do it quick
 
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