Break fee

A break fee is what a bank charges to exit a fixed-rate mortgage early — compensating the bank when current rates are lower than your fixed rate.

Break fees are roughly the interest differential over your remaining fixed term, so they can run to tens of thousands after rates fall. Always get the exact figure from the bank before refinancing, selling, or restructuring mid-term — sometimes the break maths works in your favour, often it doesn't.

This page is general information, not financial, legal, or tax advice. Rules change — always confirm current settings with official sources and seek independent professional advice.