Arrears Interest
Compound interest is charged on arrears of payments at the same rate applying to the loan advanced.
Fees
The following fees are charged on occurrence of the action as described:
- Mortgage Deed Sealing Fee: €38.
- Title Documents Release Fee: €38.
- Lapsed Insurance Policy Processing Fee: €60.
- Arrangement Fee: 0.5% of the initial advance subject to a maximum fee of €1,800.
- Further Advance Arrangement Fee: 0.5% of the initial advance subject to a maximum fee of €500.
Start has suspended** charging the following fees on occurrence of the action as described:
- Direct Debit Alterations: €10.
- Alterations in Mortgage Terms: €130.
- Returned Instalment: €12.
- Reminder Letter on Outstanding Instalment: €10.
- Interim Account Statement: €6.
- Copies of Documents: €6 per document.
- Solicitor, Auditor or Accountant Letter: €13.
- Call Out Fee: €50.
- Credit Transfer Drawdown: €20.
- Interest Surcharge on arrears: 1% per month
** Customers to which the revised Code of Conduct on Mortgage Arrears applies and in respect of which are not co-operating reasonably and honestly with Start in the Mortgage Arrears Resolution Process may be charged these interest and fees.
Securitisation
As a customer of Start Mortgages Limited, you should not be aware of any effect from securitisation as Start Mortgages Limited will continue to deal with all matters relating to your mortgage, including all interest rate setting and account management.
Calls Recording
Start Mortgages may record both incoming and outgoing calls for training and quality purposes.
Terms Of Business
Please ensure that you read and are familiar with Start Mortgages Terms of Business for consumers prior to us providing any service to you.
EARLY REPAYMENT/CONVERSION
The Formula for calculating the cost of the Early Repayment/Conversion of a Fixed Rate
Loan:
In the case of a fixed rate loan, in the event of early repayment of the Loan in whole or in part
for any reason, or conversion to a variable interest rate, or other fixed rate within the initial
fixed rate period or any further or subsequent fixed rate period, the Borrower may be liable to
pay a sum to be calculated in accordance with the following formula;
(MORTGAGE BALANCE) X (BREAK FUNDING COST) X (UNEXPIRED FIXED RATE TERM IN DAYS / 360)
where:
- Mortgage Balance is either the balance repaid or the balance of the mortgage loan at the date of conversion to another interest rate.
-
Break Funding Cost is calculated by reference to the difference in the following
annualised interest rates.
(A) original fixed interest rate (fixed at start of original fixed interest rate period), and (B) the fixed interest rate applicable either when the balance is repaid or the loan is converted i.e. (A)-(B). - Unexpired Fixed Rate Term is the period remaining in days to the end of the original fixed interest rate period from the date the balance is repaid or the loan is converted.
An Example:
Assume that a borrower who agreed a fixed mortgage rate of 5% for a three year period chooses to
break out of the fixed rate after only 1 year has passed (i.e. there are a further 2 years to run
before the end of the fixed rate period). Assume also that the mortgage balance on the borrower's
account is €209,300 at the time and that the new applicable fixed rate for the remaining 2 years
is 3%. In this case the maximum sum that the customer is liable to pay to Start to break-out of
the fixed rate, calculated in accordance with the formula, is as follows:
| Mortgage Balance | X | Break Funding Cost | X | Unexpired Fixed Rate Term | = | Sum Due From Borrower |
| (€209,300) | X | (2%) | X | (730/360) | = | €8,488 |
No early repayment/conversion fee will apply where the original fixed interest rate is lower than the fixed interest rate applicable at the time the loan is either repaid or converted.
