It was more to do with when he broke. Anthony broke in October, and interbank rates have tanked since - flight to safety on back of stock market falls, and signs from Europe that rates aren't going to increase anytime soon.can't imagine between March and June 2016 the interbank rate changed that much,
I'll check interbank rates later for you. On mobile at moment.4 Years left on my current Fixed rate so that would make it about right, 155k x 0.4% x 4 = 2480, I have edited my other post to remove the erroneous calculations.
7 year rate on 31st Mar 16 was 0.225 and 4 year rate 15th Feb 19 was 0.03, so on my calculation i got ~€918 breakage fee.
The Ulster Bank letters do seem confusing. There have been a few questions on them.I'm totally confused by this proces
Interbank interest rates have dropped a bit over the first few months this year. Fears if a recession in Europe have tightened rates even further, so the knick on impact is an increased break fee.especially the fee increasing
Thanks. It's to switch to a lower rate and use the savings to overpay up to the 10% allowed.The Ulster Bank letters do seem confusing. There have been a few questions on them.
Interbank interest rates have dropped a bit over the first few months this year. Fears if a recession in Europe have tightened rates even further, so the knick on impact is an increased break fee.
Can I ask why you want to break? Is it to switch rate / lender or to make a repayment?
I have dealt with BoI extensively and they give you the two key parameters: the rate they hedged at when the rate was agreed, and the inter-bank deposit rate today they would face if you repaid them early.So AIB wrote to me with a “breakdown” of how they are calculating the break fee. It is the formula on their website which they claim they use because of their hedging obligations. But they have not confirmed at what rate they hedged at do they have to disclose this?
I can’t imagine they hedged at the same rate as they are charging.