Ulster Bank fixed term payment charge increase

I

irishguy

Registered User
Messages
168
I got a quote from ulster bank to pay off an amount of money off my fixed-term mortgage (2 years left) of €400 in Feb this year, I didnt end up paying the money and got a quote again today for the same amount and it was over €2,000. This seems a bit mad, are the banks allowed to change the fees so drastically in 8months?
 
Yes, the break fee is calculated based in movement in funding rates.

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

Interbank rates have dropped significant since the start of the year.

What's be interesting to see in your case is if they're calculating based on 2 or 3 years (I think they made a mistake in your letter and offered you a 2 year rate for 3 years?).
 

They made a mistake when they offered me the fixed, it should have ended next year, but they allowed me to keep it till 2021. Which at the time was great, not so great now.
 
I did accept it in writing, so that won't work. IV asked them to recalculate and share the workings. I'll see what comes back
 
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