Moving house during fixed term

B

buffalomc

New Member
Messages
2
Hi all,

I'm two years into a five year fixed term mortgage with PTSB (at 2.8%). We're looking at moving house, and we were quoted a breakout fee of €7k. It's lower than I expected, but still a hit I'd prefer not to take.

I had thought that I could work something out with PTSB that if we started a new fixed term on the new property or similar, the fee could be waived. Two phone calls with lower level staff (based on their ability to answer questions without consulting others) has not yielded any positive news.

Has anyone done anything similar? If I call into a branch to talk to a proper mortgage advisor, do they have the authority/freedom to work something out?

Alternatively, is there a way to lower the fee - by paying off some of the mortgage earlier (but within the set limits) ?
 
How big is the mortgage?

In any case you should ask your lender for their calculations of the break fee so you can make sure they’ve done it right.
 
Alternatively, is there a way to lower the fee - by paying off some of the mortgage earlier (but within the set limits) ?
Click to expand...
Presume you are selling up, and buying this other house? In which case you'd usually sell, use the proceeds to pay off the mortgage entirely, then have a new mortgage (with new fixed rate if you want that) ready to go on the new house. At least that's what I done a couple of times a few years ago.
Last time I did this I was with Ulster on a fixed rate, but was taking out a new mortgage (for the new house) again in Ulster so they waived the fee for paying off the mortgage (hence breaking fixed rate) when we sold & cleared the mortgage. I would go into your branch & actually speak with somebody.
 
It's good to hear there's a possibility at least, thanks myate. Yep, selling up, closing off one mortgage and opening up a fresh one on the new property is the plan alright. Given that a new fixed rate would be a good bit higher than our current one, it'd be in their interest to keep me (or get their breakout fee for the short-term gain I guess). I'd asked to speak to an advisor, but I might just doorstep the local branch and see who I can nab.

There's still about €300k left, and I'll ask for their calculations.
 
Different lenders have different policies.

So there is no guarantee that while Ulster Bank facilitated myate, that ptsb would facilitate you.

Brendan
 
The problem with the Irish mortgage market is that while fixed rates are higher than the rest of the eurozone, variable rates are artificially higher again. So while someone might be thinking of moving in the next few years, they are more or less forced to fix their mortgage rate and may end up with a penalty for breaking out early.
 
You must log in or register to reply here.
Back
Top