Moving House with a Fixed Rate Mortgage

PolkaDot

Registered User
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Hi all,

I'm currently with AIB on a LTV variable mortgage. Considering switching to a fixed rate given the recent cuts....either staying with AIB or moving to Avant Money...probably on a 3yr fixed rate.

However, my wife and I are considering moving house and upsizing within the next couple of years if we see the right options for us. My question is, if I am on a fixed rate mortgage and I need to re-mortgage in order to buy the new house, would that be considered a "break" from the fixed rate? Assume I would stay with the same mortgage provider for the move.

Thanks for your help.
 
My question is, if I am on a fixed rate mortgage and I need to re-mortgage in order to buy the new house, would that be considered a "break" from the fixed rate?
If you sell your current home you will have to discharge the mortgage, which would of course break the fixed term.
 
Yes it would, some lenders used to refund any break fee if you took out a new mortgage with them within a certain timeframe but check if that is the case still.
 
Hi Polka Dot

The break fee on a fixed rate mortgage with a year to go should not be that much.

If you were going to trade up in the next 6 months, I would recommend going for a variable rate.

But if it's just an idea, then go for the 3 year fixed rate. AIB has two ways of calculating the break fee, so they are more likely to be the lowest break fee.

So taking all into consideration, fix with AIB for three years.

And when you first start thinking of moving which will probably be 6 months before you actually move, get a quote for the break fee. It might actually be zero and so might be worth going for.

Brendan
 
Thanks Brendan. Yes, I don’t really see us moving in the very near term. So I’m considering the 3yr fixed with AIB or Avant. Thanks.
 
If you sell your current home you will have to discharge the mortgage, which would of course break the fixed term.

Is this the case with every bank.
I have a 10yr fixed rate with KBC. The last time i asked about the break fee (about 12 months ago), it was about €15,000!

I recently asked them about a re-mortgage for trading up, and was told i would still keep paying off the 10yr fixed portion as normal and the additional amount borrowed would essentially be a new loan. At least thats what i think they said! It might just scupper any idea i have of moving if it incurs a 15k break fee.
 
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