Selling House - Do I pay fixed penalty?

K

kmick

Registered User
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Hi,
Wondering of anyone has any ideas on this. I am selling my house and am currently about 4 months into a fixed rate 2 year product from AIB. When I pay off the mortgage will I pay a penalty to compensate the bank for fixed rate losses. Alternative is to hold that mortgage and keep the cash from the sale but I dont think the bank would go for that. Anyone had this before?
Thanks
kmick
 
You don't say if you're buying another house and getting another mortgage. Usually, banks will waive the penalty if you take out the new mortgage with them for the new house and agree to the same rate for the balance of the fixed rate, in your case the balance of 2 years.

But if you're selling the house and not planning to buy again, I think you pay the penalty. You can't keep on a mortgage with no house to secure it on.
 
Buying another house. Its a funny one there does not seem to be much information around on it. I dont like ringing the bank because they tell you one thing on the phone and another in person.
 
Unfortunately this will still be more reliable than whatever information you get from this forum (no matter how reliable the source). Only the relevant bank can correctly answer your question.

Ask the bank for a written response.
 
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