Banks charging up to €44k for loan switch

BANKS are charging up to €44,000 for customers to move from more expensive fixed rate mortgages to cheaper variable rates, according to the Financial Regulator, who said they are not in a position to do anything about the costs.

Recent drops in interest rates have led to significant reductions in monthly payments for mortgage holders, except those who have fixed their rates for a number of years.

The Department of Finance and the Oireachtas Finance Committee asked the Regulator to examine if anything could be done to prevent banks from charging huge sums to customers wishing to get out of their fixed rate.