Possible to jump from fixed to variable rate?

K

kcylinders

Guest
Hi there

I signed up to a fixed rate mortgage with First Active at 5.79% last year. Now I know that when you sign up for these things, you run the risk that rates will fall but I had no idea they would fall so massively. I assumed I was basically stuck with this mortgage for the next 4 years, but I have heard that some banks, including First Active, are now allowing people out of these fixed rate mortgages. Quite what they are allowing you to jump into, or what is in it for them, I don't know!

Has anyone heard anything about this? It would be a massive help to have a variable rate at the moment as I keep hearing rates are due to stay low for a long time. It seems too good to be true if this is possible. Should I just hunker down and deal with the 5.79% rate for the next 4 years?

Thanks for your help and apologies if this question has been asked before.
Koenig
 
Only First Active can answer this, it's very unlikely they will allow you to move to a variable rate without charging you a significant penalty but check with them.

If you can get you of the fixed rate without penalty then you should.

www.moneybackmortgages.ie
 
You need to ask about the cost of moving from a fixed. I know that PTSB charge quite high rates (€16k to get out of the last 2 years of a fixed rate) but you can also check out what the cost would be to redeem the mortgage in full and move to another provider (€4k with PTSB).
Hope this is of help!!
 
Hi guys

thanks for the help NorfBank and allie12. Do you know if the fact that my apartment must surely be worth well less now than it was a year ago would have any impact on another bank's willingness to let me join with them instead?

Thanks again
Koenig
 
If the outstanding sum on your mortgage is over 92% of the value of your apartment then you will not be able to switch to another lender.
 
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