Scoop has an Ethical Paywall
Breaking fixed interest mortgage contracts
ANNOUNCEMENT
The ValueAdd Company
20th January
2009
Breaking fixed interest mortgage
contracts
It would appear that the calculation of a “break fee” for terminating fixed interest mortgages by financial institutions, according to some reports, is more of an art than a science!
The basis of the charge is that the contracted interest on a given mortgage fixed for an agreed term will be substantially reduced in the current interest rate environment if that advance is repaid early and a new advance made. Until now it seems to be a matter of speculation as to what “break fee” is reasonable and what is not.
The ValueAdd Company has today launched an online calculator (visit) designed to take the guesswork out of the implications of re-financing a mortgage that involves cancelling a fixed interest contract. The benefits, if any, for the homeowner can be easily calculated.
ENDS
Zhenbo Wang, The Conversation: From New Commercial Moon Landers To Asteroid Investigations, Expect A Slate Of Exciting Space Missions In 2025
Worldline: Boxing Day Spending Up On Last Year, But Pre-Christmas Spending Is Slightly Down
Skoltech: Scientists Reinvent Physical Laws Governing Formation Of Snowflakes, Raindrops, And Saturn’s Rings
Trademe: Trash To Treasure - Kiwi Make The Most Of Unwanted Christmas Gifts 
Financial Markets Authority: FMA Seeks Clarity From High Court On Use Of Eligible Investor Certificates In Wholesale Investment Sector
Scion: Scion’s Novel Internship Model Connects Talent With Industry
