March 6, 2009 at 8:26 am #3886libby1Participant
The interest rate are been reduced again, and they hope to reducdethem again in 5 months…. They are so low….
I have it fixed for the last 11/2 year and will be like this till 2012..
I would have to pay €8000 to come out of fixed payement – it is so not fair??
Any ideas…….March 6, 2009 at 8:42 am #70703yummymummyMember
Im afraid there isnt anything you can do, this would have been in the terms and condition of your mortgage that you would be charged a fixed penalty if you wished to avail of a breakage in the fixed rate. Its usually 6 months repayments but it also takes into consideration the rate you are on now and the rate you would be on if you switched.
is it worth the €8000 to break it????
they will eventually go back up, but when…i just dont know.March 6, 2009 at 8:56 am #70708munchinParticipant
yeah it’s playing the gambling game – firstly having to find the money to break it in the first place – i’d probably have to borrow to break minebut would we make it back before the rates start going up again. Have also heard that if you do break – the trick is to try and keep payments as high as you can while rates are low to lower overall mortgage.March 6, 2009 at 9:14 am #70713YvonneMember
The break out penalty is ridiculous really, but unfortunately nothing you can do about it… when we sold our house and got a new mortgage to build, we wanted to leave IIB, or KBC as they are now called… and they wanted to charge €7500 to do it! We had to stay with them!!March 6, 2009 at 4:19 pm #70750JRMember
Well heres a good one 4 u’s……. I’m with BOI have a fixed rate 4 5yrs i’m in it now 2yrs….. I rang about 2wks ago to c how much it is 2 get out of it, wait 4 it……… €14,000 MADNESS….. Yes i’ll stay in it 4 the nxt 3yrs……..March 7, 2009 at 9:34 am #70756scole1Member
oh nasty, some of the fixed rates were good rates and offered those who fixed a great rate, in times when things were flush it meant that interest rates went up and those who had variable rates got screwed as those on fixed and a great rate, now unfortunately things have changed recession has caused rates to drop and those on variable are the winners, hate to add fuel to the fire but we have a tracker mortage changed just before they stopped doing them and our interest rate will be dropping to 1.5% huge drop in interest rate and cost to mortage we do still pay the original rate amount into the account to help keep on track if the rates fly up again……
it’s a hard one to gamble really but no doubt things will pick up and interest rates will fly back up again…….
but huge amounts to be asked to get out of fixed rates that’s mental….March 8, 2009 at 10:06 am #70764mammycoolParticipant
Unfortunately, that is what you get with a fixed rate. I fixed mine before all the interest rates went up. It is fixed at 4.9%. We are three years into the 5 years and could only get out by paying the next two years interest. Also, the mortgage interest relief paid by the government is on a yearly basis, so if you break your contract, you would have to pay what the government would normally pay on your behalf for the additional years.
I know the rates have dropped dramatically, but they can also turn and go up again overnight. At least, at the moment you know exactly what to pay each month and can put the money aside. On a variable mortgage, if this starts to go up rapidly, you could be left struggling to find the difference.
It is actually a very good time to take out a fixed mortgage at a low fixed rate – I think it is about 3.9% fixed at the moment. You can be sure that the variable rate will definately go back up in the next 5 years.March 8, 2009 at 5:43 pm #70769scole1Member
for sure, we we’re fixed first 2years then variable think that’s how we were able to change…but if can fix now at good rate, things will increase and could go mad again…….
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