PTSB breakage fee "swap/market" rate?

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Pneuma

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Hi all,

Can anyone advise what the "swap/market" rate means, as referenced in the PTSB breakage fee calculation (screenshot shown below)? I have spoken to PTSB and they couldn't (or wouldn't) tell me what it meant. The mortgage advisor said he asked several people and no one knew - have had a very similar experience with AIB regarding their breakage fee calculation which I find unbelievable, it has to be deliberate. They said I would have to first take out a mortgage with them and then enquire what the break fee would be for a given lump payment.

My mortgage would be at the high value 3-year fixed Green rate of 3.60%.

Is the "I" in the formula below the 3.60%, or is it a different PTSB rate?
Is the "S" in the formula below the 3-year fixed green rate at the time of the lump payment or is it a different rate?

Any advice is appreciated!


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Anyone have any idea?

Finally got through to the team that actually calculates the breakage fees and was told that they don't know what it means, it possibly references other interest rates that aren't disclosed to the public/customers. Said they just put the lump payment number in to the computer and it tells them what the fee is.
 
This is my experience with other lenders.

The values in the above formula are supplied by the treasury department and the mortgage department just applies it blindly.

My guess is that frontline mortgage staff are kept in the dark about this so they don’t make it easy for customers.
 
Pneuma said:
My mortgage would be at the high value 3-year fixed Green rate of 3.60%.

Is the "I" in the formula below the 3.60%, or is it a different PTSB rate?
Is the "S" in the formula below the 3-year fixed green rate at the time of the lump payment or is it a different rate?

Any advice is appreciated!
Click to expand...
The I & S are the prevailing interest rates offered between financial institutions. They are not mortgage rates.

While the swap rate PTSB use may reflect their own access to the market I imagine these swap rates will track the broader market trends reasonably well.

Below are a couple of old posts on the topic

Key Post - Understanding Fixed Rates breakage costs

Moderator's note: for anybody who is thinking of switching their mortgage (or re-fixing with their current lender), consider posting your mortgage details in the switcher thread (in the format shown in the first post). Someone will calculate an estimate of the break fee (if any) and of the...
www.askaboutmoney.com

Key Post - Switch or re-fix my mortgage? Breakage fee calculator and savings estimates for your case (Ireland)

I am creating this thread as a place where people can request guidance on whether they should switch their mortgage to another lender (also called mortgage refinancing or remortgaging) and, if so, which lenders and interest rates they might consider switching to. You are allowed to switch even...
www.askaboutmoney.com
 
You’ll always have to ring, they’ll never make it so that you can work it out yourself. If they did, forensic accountants would have a field day taking on clients to point out mistakes made.

Usually breakage fees on home loans are modest enough, if not €0 (speaking anecdotally).
 
Thanks very much everyone for clarifying. Yes, it does seem to be a deliberately opaque process.
 
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