Key Post Switch or re-fix my mortgage? Breakage fee calculator and savings estimates for your case (Ireland)

[time to plan]

Hi @Paul F,

Interested to hear your thoughts and thanks for your time on this.

Done some calcs myself and PTSB looks best (~13.5k saving over 5yrs assuming 2k fees for switch) but not sure what impact being a contractor (started last July with my wife a full time employee) would have on a switch

• Current lender BOI
• Outstanding mortgage balance (how much you still owe) €370,000
• Approximate value of your property €650,000
• The date you started your fixed-rate mortgage (month and year) May 2018
• How many years you fixed for 10 years
• Your current mortgage interest rate 3.3%
• Your current monthly repayment (excluding any overpayments) €1750
• Your property's BER (Building Energy Rating) – estimated if necessary - not sure - C at best - built in 1980
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? Yes, due 1% (€4,000) in May 2023

Spoke to BOI this morning break fee is 0 currently, they offered me a 3% interest rate over 5 years - ~5k saving over 5 years plus 4k cashback so 9k. Interested to hear what other existing BOI customers have been offered.

BoI offered me nothing better than their headline rates for existing customers, although some people here seem to have pushed to get a 0.1% discount. They reserve their best rates and cashback for new customers, so I've jumped to Avant for a 7 year fix @ 1.95%.

 

[masterboy123]

Current lender: PTSB
Outstanding mortgage balance (how much you still owe): 162K
Approximate value of your property: 265k
The date you started your fixed-rate mortgage (month and year) Aug 2020
How many years you fixed for: 5
Your current mortgage interest rate: 2.95%
Your current monthly repayment (excluding any overpayments): €905.
Your property's BER (Building Energy Rating) – A3
Are you due to get extra cashback from your current lender in the future? No

Thanks

 

[Lisalefteye]

• Current lender Ulster bank
• Outstanding mortgage balance (how much you still owe) €266k
• Approximate value of your property €430k
• The date you started your fixed-rate mortgage (month and year) September 18
• How many years you fixed for 4
• Your current mortgage interest rate 2.6%
• Your current monthly repayment (excluding any overpayments) €1236
• Your property's BER (Building Energy Rating) – estimated if necessary B2
• Are you due to get extra cashback from your current lender in the future, No

I did request to find out the breakage fee from UB. They sent me out a redemption statement. There's no mention at all of a breakage fee so does that mean it's zero or will I get a 2nd letter from them as mentioned a few posts back.

I've done a little research and im leaning towards Haven 3 yr fixed for the €5k cashback. I figured if it cost me 2k to switch and i lodged the other €3k to the mortgage account, haven would pay the first €83 of my mortgage each month over the term. But I'm no expert so I'm interested to see what someone knowledgeable thinks. The help is very much appreciated.

 

[Paul F]

Current lender: PTSB
Outstanding mortgage balance (how much you still owe): 162K
Approximate value of your property: 265k
The date you started your fixed-rate mortgage (month and year) Aug 2020
How many years you fixed for: 5
Your current mortgage interest rate: 2.95%
Your current monthly repayment (excluding any overpayments): €905.
Your property's BER (Building Energy Rating) – A3
Are you due to get extra cashback from your current lender in the future? No

Thanks

Your break fee is zero at the moment.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €6,200 over the next 4 years
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €5,320 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (1.95% with no cashback) will save you about €4,460 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will save you about €3,580 over the next 4 years – but with the even longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.25% with no cashback) will save you about €2,680 over the next 4 years – but with the even longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.95% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.95% rate in August 2025 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

The estimates also assume that your current balance is actually €159k. That gets your loan-to-value ratio (LTV) below 60%, so that you are eligible for the listed Avant rates (assuming Avant give you a valuation of €265k). You are already eligible for the listed Haven and AIB rates.

You are very unlikely to have a break fee with PTSB in the near future. This graph would have to fall below about −0.38% before you would have a break fee. But there is a risk (for everyone) that the banks will put up their mortgage interest rates fairly soon. Bear this in mind if you are thinking about abandoning your current switch to AIB and switching instead to Haven or Avant.

 

[Paul F]

• Current lender Ulster bank
• Outstanding mortgage balance (how much you still owe) €266k
• Approximate value of your property €430k
• The date you started your fixed-rate mortgage (month and year) September 18
• How many years you fixed for 4
• Your current mortgage interest rate 2.6%
• Your current monthly repayment (excluding any overpayments) €1236
• Your property's BER (Building Energy Rating) – estimated if necessary B2
• Are you due to get extra cashback from your current lender in the future, No

I did request to find out the breakage fee from UB. They sent me out a redemption statement. There's no mention at all of a breakage fee so does that mean it's zero or will I get a 2nd letter from them as mentioned a few posts back.

Does the redemption statement have a line that says "Early redemption (breakage) charge"? If so, that is the break fee.

Your break fee should be around €1,020 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Ulster Bank. (I'm assuming that your UB fixed rate ends in December (not September) 2022. Is that correct?)

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,340 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (2.05% with no cashback) will leave you worse off by about €200 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will leave you worse off by about €240 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Of course, if you decide to do this, you will probably want to switch again in 5 years when your fixed rate expires and your mortgage moves onto Permanent TSB's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 10-year fixed rate (2.2% with no cashback) will leave you worse off by about €1,720 over the next 4 years – but with the even longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €3,760 over the next 4 years – but with the even longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.20% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.20% rate in January 2023 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Permanent TSB, whose rates are much higher than Ulster Bank's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €5,340 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

Note: if you got a higher property valuation (€444k) or you paid an €8k lump sum off your mortgage, or some combination of the two, you could get your loan-to-value (LTV) ratio below 60%. (It is currently 266k/430k = 61.9%.) That would make you eligible for lower Avant interest rates, which would narrow the gap between Haven and Avant in terms of savings while offering the security of a longer period on a fixed rate (if you went with Avant).

 

[Lisalefteye]

Does the redemption statement have a line that says "Early redemption (breakage) charge"? If so, that is the break fee.

Your break fee should be around €1,020 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Ulster Bank. (I'm assuming that your UB fixed rate ends in December (not September) 2022. Is that correct?)

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,340 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (2.05% with no cashback) will leave you worse off by about €200 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will leave you worse off by about €240 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Of course, if you decide to do this, you will probably want to switch again in 5 years when your fixed rate expires and your mortgage moves onto Permanent TSB's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 10-year fixed rate (2.2% with no cashback) will leave you worse off by about €1,720 over the next 4 years – but with the even longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €3,760 over the next 4 years – but with the even longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.20% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.20% rate in January 2023 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Permanent TSB, whose rates are much higher than Ulster Bank's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €5,340 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

Note: if you got a higher property valuation (€444k) or you paid an €8k lump sum off your mortgage, or some combination of the two, you could get your loan-to-value (LTV) ratio below 60%. (It is currently 266k/430k = 61.9%.) That would make you eligible for lower Avant interest rates, which would narrow the gap between Haven and Avant in terms of savings while offering the security of a longer period on a fixed rate (if you went with Avant).

Thanks so much for that Paul. Lots of things to look at. I'd never have thought to look at moving the LTV rate below 60% and it would be manageable for us. No there is no mention of a breakage fee on what they sent me. The only headings on the redemption statement are: Capital Balance b/f from last statement, additional borrowing, interest to anticipated redemption date, release of security fee, other debits, less repayments made, amount due (266k)

Then underneath that it has, daily interest charge and insurance premium. I just expected a breakage fee to be clearly stated on it and can't understand how it isn't mentioned.

You mentioned the fixed term maybe ending in December 2022. I don't believe so, I'm sure it ends 30th September 2022. Is there a reason that I'm missing that it could be December?

Thanks again.

 

[Isabel S]

@Isabel S Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC (and please post it here when you receive it).

How long have you had a mortgage with KBC (as opposed to when did you fix at 2.25%)? If you have had a mortgage with them for less than 12 months, your switching choices are limited.

But let's assume you have had a mortgage with KBC for at least 12 months.

Switching to Avant's 1.95% rate fixed for up to 7 years will save you about €1,000 over the next three years (versus breaking immediately and re-fixing with KBC so that you "reset the clock" and get another 3 years on KBC's 2.25% rate), and that's after accounting for fees and cashback.

Of course, if you decide to stay with KBC, you will probably have to switch again in 3 years when your fixed rate expires and your mortgage is on Bank of Ireland's books, at which point you will be subject to their (probably higher) interest rates.

The above savings estimate assumes that you start the switch to Avant before the end of March and use a broker who is an Avant "Gold Partner", so that you are eligible for the €1,500 cashback.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.1% rate, fixed for 10 years.

Hi Paul,

KBC came back with zero breakage fee but I have unfortunately missed out on the 1500 euro deal that expired at the end of March. KBC were fairly slow to come back-took about 8 working days. Is it still worthwhile to switch given that I missed out on the cash back offer? It might be still advantageous I am thinking to avail of a low fixed rate for 7 years with Avant as opposed to my current fixed rate with KBC which runs out in 2.5 years time in Oct 2024. Any input appreciated.

Also KBC said I have to send back completed break out of fixed rate forms within 10 working days. Does it mean I am stuck on their variable as I wait for the legal process to complete? (assuming I do proceed to break out of the KBC fixed rate).

 

[Paul F]

Hi Paul,

KBC came back with zero breakage fee but I have unfortunately missed out on the 1500 euro deal that expired at the end of March. KBC were fairly slow to come back-took about 8 working days. Is it still worthwhile to switch given that I missed out on the cash back offer? It might be still advantageous I am thinking to avail of a low fixed rate for 7 years with Avant as opposed to my current fixed rate with KBC which runs out in 2.5 years time in Oct 2024. Any input appreciated.

• Breaking immediately out of your KBC fixed rate and re-fixing at the same rate will "reset the clock" and give another 3 years on that rate. It would cost you nothing and it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Of course, if you decide to do this, you will probably want to switch again in 3 years when your fixed rate expires and your mortgage moves onto Bank of Ireland's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 7-year fixed rate (1.95% with no cashback) will leave you worse off by about €540 over the next 3 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will leave you worse off by about €500 over the next 3 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
• Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will leave you worse off by about €1,020 over the next 3 years – but with the even-longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.25% with no cashback) will leave you worse off by about €1,500 over the next 3 years – but with the even-longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.25% rate with KBC when the current fixed rate ends. And that's assuming that KBC (or Bank of Ireland, if they have taken over your mortgage by then) are even offering a 2.25% rate in October 2024 – it could be higher (or lower). The estimates also account for fees and assume that the Avant cashback offer is finished.

You can see that switching to Avant would cost you over the short-to-medium term but would give you the security of a longer period on a fixed rate.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Bank of Ireland, whose rates are much higher than KBC's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home, which avoids any future break fee. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

Also KBC said I have to send back completed break out of fixed rate forms within 10 working days. Does it mean I am stuck on their variable as I wait for the legal process to complete? (assuming I do proceed to break out of the KBC fixed rate).

If you are thinking of switching to Avant, I would say you should not break out of your KBC fixed rate until the very end of the process. (It will happen automatically when your solicitor pays off your KBC mortgage using the funds from your Avant mortgage.)

If you are instead going to do the "break and re-fix with KBC", contact them and ask them how to do this in a smooth way so that you don't have to spend any time on their variable rate.

 

[Paul F]

Thanks so much for that Paul. Lots of things to look at. I'd never have thought to look at moving the LTV rate below 60% and it would be manageable for us. No there is no mention of a breakage fee on what they sent me. The only headings on the redemption statement are: Capital Balance b/f from last statement, additional borrowing, interest to anticipated redemption date, release of security fee, other debits, less repayments made, amount due (266k)

Then underneath that it has, daily interest charge and insurance premium. I just expected a breakage fee to be clearly stated on it and can't understand how it isn't mentioned.

It's bizarre and ridiculous that the redemption statement doesn't include a break fee quote. Phone up UB and ask them for a break fee. They will post it out yo you.

Since your fixed rate ends at the end of September, your break fee should be around €640 at the moment – but it is volatile because wholesale interest rates are volatile.

Note: you will receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says: "To break out of this fixed rate early, you would have to pay a fee of €X". That amount is your break fee. Ignore all other references to break fees.

Let's assume that your property is worth €435k and you make a €5k overpayment, so that you get into the ≤60% LTV bracket:

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,380 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (1.95% with no cashback) will save you about €840 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will leave you worse off by about €140 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Of course, if you decide to do this, you will probably want to switch again in 5 years when your fixed rate expires and your mortgage moves onto Permanent TSB's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will leave you worse off by about €640 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.25% with no cashback) will leave you worse off by about €2,120 over the next 4 years – but with the even-longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.20% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.20% rate in October 2022 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home, which avoids any future break fee. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €5,380 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback. (Note that if you make a very large overpayment now, your balance could go below €250k and you would be ineligible for the €5k cashback.)

You mentioned the fixed term maybe ending in December 2022. I don't believe so, I'm sure it ends 30th September 2022. Is there a reason that I'm missing that it could be December?

Ulster Bank normally offer fixed rates for "X and a bit years", so if your fixed rate ends at the end of September 2022, it seems unlikely (though not impossible) that it started in September 2018. Could it have been July or August 2018? (It only matters for estimating the break fee – you'll know the real break fee in a few days.)

BTW, it should be possible to find a solicitor who will do a switch for €1,300 "all in", i.e., including VAT and outlays. See the three threads about solicitors that are linked to in this post.

 

[keensaver]

Current lender: KBC
Outstanding mortgage balance (how much you still owe): 125k
Approximate value of your property: 350k
The date you started your fixed-rate mortgage (month and year) April 2021
How many years you fixed for 3years
Your current mortgage interest rate 2.45%
Your current monthly repayment (excluding any overpayments) 1020
Your property's BER (Building Energy Rating) – estimated if necessary D
Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? No

I assume zero breakout charge? Don't have KBC current a/c - can they still be opened to avail of 0.2% discount? Circa 11.8 years left on mortgage. Avant 1500 cashback is finished? - their lending requirements may be too strict in any event. Is 2.05% PTSB 4yr worth a look with 2% repayment cashback or better alternatives? Or best to stick with KBC (and likely BOI in time) given the cost of switching, which I assume is around 1300?

 

[tobottherobot]

Hi Paul

I got a break free from BOI back in January of approx. €1950ish. Can you help me understand if that's still realistic in the current world? I'm liking the look of the Avant 7 year fixed at 2.05%.

• Current lender BOI
• Outstanding mortgage balance (how much you still owe) €393,000
• Approximate value of your property €575,000
• The date you started your fixed-rate mortgage (month and year) May 2019
• How many years you fixed for 5 years
• Your current mortgage interest rate 3%
• Your current monthly repayment (excluding any overpayments) €1,595
• Your property's BER (Building Energy Rating) – estimated if necessary - A2
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? Yes, due 1% (€4,000) in May 2024

Thanks

 

[CumminsSen]

At @Brendan Burgess's suggestion, I am creating this thread as a place where people can request guidance on whether they should switch their mortgage and, if so, which lender and rate they should switch to.

You are allowed to switch even if you are in the middle of a fixed rate with your current lender. The savings can be very significant, even if you have to pay fees.

The guidance will include an estimated calculation of the break fee ("early breakage charge" / "breakage cost") if you are currently on a fixed-rate mortgage. (If you are currently on a variable-rate mortgage, you do not have to pay a break fee when switching.) I am not aware of an online mortgage break fee calculator for Ireland, but this is arguably the next best thing.

To request guidance, please provide the following information:

• Current lender
• Outstanding mortgage balance (how much you still owe)
• Approximate value of your property
• The date you started your fixed-rate mortgage (month and year)
• How many years you fixed for
• Your current mortgage interest rate
• Your current monthly repayment (excluding any overpayments)
• Your property's BER (Building Energy Rating) – estimated if necessary
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when?

If you are looking for information on something that is not directly related to break fees or which lender to switch to, first check the below links to see if your query has been answered before. Consider asking your question in one of those threads before asking it here.

Nothing in this thread should be considered financial advice.

Ulster Bank
330k
570k (according to lender's HPI)
October 2020
5 years
2.2%
1183
A2
No

Thanks in advance

 

[Marriedfirst]

Would love some guidance as UB are leaving and I know our mortgage is getting taken over by PTSB

• Current lender - Ulsterbank
• Outstanding mortgage balance (how much you still owe) -331,580
• Approximate value of your property - 442,900
• The date you started your fixed-rate mortgage (month and year) - June 2020
• How many years you fixed for - 5 years
• Your current mortgage interest rate - 2.6%
• Your current monthly repayment (excluding any overpayments) - 1,270
• Your property's BER (Building Energy Rating) – estimated if necessary - A3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? None

Would appreciate any advice

 

[mortgagebreaker]

I'd love to know what my break fee should be. I have called KBC in Jan, Feb, March and again today and it was virtually unchanged each time. I was hoping it would be near zero based what I have been reading here and elsewhere about the increase in market interest rates since Jan.

• Current lender KBC
• Outstanding mortgage balance (how much you still owe) 280,000
• Approximate value of your property 360,000
• The date you started your fixed-rate mortgage (month and year) November 2018
• How many years you fixed for 5 years
• Your current mortgage interest rate 2.6%
• Your current monthly repayment (excluding any overpayments) 1280
• Your property's BER (Building Energy Rating) – estimated if necessary D3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? No.

 

[Paul F]

Current lender: KBC
Outstanding mortgage balance (how much you still owe): 125k
Approximate value of your property: 350k
The date you started your fixed-rate mortgage (month and year) April 2021
How many years you fixed for 3years
Your current mortgage interest rate 2.45%
Your current monthly repayment (excluding any overpayments) 1020
Your property's BER (Building Energy Rating) – estimated if necessary D
Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? No

Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC (and please post it here when you receive it, including the date of the letter).

• Switching immediately to AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €580 over the next 4 years
• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €540 over the next 4 years. (After 4 years, you will not be eligible to switch to any PTSB rate that is reserved for new customers only.)
• Switching immediately to Avant Money's 7-year fixed rate (1.95% with no cashback) will save you about €280 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will leave you worse off by about €190 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed). You will need to open a KBC current account, however. It seems that this is still possible to do.
  • Of course, if you decide to do this, you will probably want to switch again in 5 years when your fixed rate expires and your mortgage moves onto Bank of Ireland's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will leave you worse off by about €360 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.25% rate with KBC when the current fixed rate ends. And that's assuming that KBC (or Bank of Ireland, if they have taken over your mortgage by then) are even offering a 2.25% rate in April 2024 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Bank of Ireland, whose rates are much higher than KBC's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home, which avoids any future break fee. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

Avant 1500 cashback is finished? - their lending requirements may be too strict in any event. Is 2.05% PTSB 4yr worth a look with 2% repayment cashback or better alternatives? Or best to stick with KBC (and likely BOI in time) given the cost of switching, which I assume is around 1300?

Yes, the Avant cashback offer is finished. Why do you think they won't let you switch to them? If it's because a broker tells you that your balance is too low, find another broker.

As noted above, the 2.05% 4-year rate from PTSB is good over the next four years, but after that you won't be eligible to switch to their best rates – those are reserved for new customers only.

I assume that solicitors' fees are €1,300 all in and that the valuation fee is €150 or €185 (depending in the lender).

Edit: You are only eligible to switch to Permanent TSB if you have been with your current lender (KBC) for at least two years.

 

[Paul F]

• Current lender BOI
• Outstanding mortgage balance (how much you still owe) €393,000
• Approximate value of your property €575,000
• The date you started your fixed-rate mortgage (month and year) May 2019
• How many years you fixed for 5 years
• Your current mortgage interest rate 3%
• Your current monthly repayment (excluding any overpayments) €1,595
• Your property's BER (Building Energy Rating) – estimated if necessary - A2
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? Yes, due 1% (€4,000) in May 2024

Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Bank of Ireland (and please post it here when you receive it, including the date of the letter).

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €11,160 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (2.05% with no cashback) will save you about €8,360 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to Avant Money's 10-year fixed rate (2.2% with no cashback) will save you about €6,080 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.4% with no cashback) will save you about €3,020 over the next 4 years – but with the even-longer security of 15 years on a fixed rate
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€4,000) cashback in 2024) will leave you worse off by about €880 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

These savings estimates use for comparison the scenario of switching to the 2.90% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 2.90% rate in May 2024 – it could be higher (or lower). You would get the Bank of Ireland €4,000 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for fees and any cashback offered by the above lenders.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home, which avoids any future break fee. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

The estimates also assume that your loan-to-value ratio (LTV) really is below 70% so that you are eligible for the listed rates. Your LTV estimate is 393.0k/575.0k = 68.3%. If you get a valuation of less than €562k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €14,160 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

 

[Paul F]

Ulster Bank
330k
570k (according to lender's HPI)
October 2020
5 years
2.2%
1183
A2
No

Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Ulster Bank (and please post it here when you receive it, including the date of the letter).

Note: you will receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says: "To break out of this fixed rate early, you would have to pay a fee of €X". That amount is your break fee. Ignore all other references to break fees.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €3,100 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (1.95% with no cashback) will save you about €1,720 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Breaking and re-fixing with Ulster Bank on the 5-year 2.2% rate will "reset the clock" and give you another 5 years on that rate and will not save you or cost you any money. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Of course, if you decide to do this, you will probably want to switch again in 5 years when your fixed rate expires and your mortgage moves onto Permanent TSB's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will leave you worse off by about €220 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.25% with no cashback) will leave you worse off by about €2,140 over the next 4 years – but with the even-longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.20% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.20% rate in January 2026 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Permanent TSB, whose rates are much higher than Ulster Bank's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home, which avoids any future break fee. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

The estimates also assume that your loan-to-value ratio (LTV) really is below 60% so that you are eligible for the listed rates. Your LTV estimate is 330.0k/570.0k = 57.9%. If you get a valuation of less than €550k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 60%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €6,100 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

 

[Paul F]

• Current lender - Ulsterbank
• Outstanding mortgage balance (how much you still owe) -331,580
• Approximate value of your property - 442,900
• The date you started your fixed-rate mortgage (month and year) - June 2020
• How many years you fixed for - 5 years
• Your current mortgage interest rate - 2.6%
• Your current monthly repayment (excluding any overpayments) - 1,270
• Your property's BER (Building Energy Rating) – estimated if necessary - A3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? None

Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Ulster Bank (and please post it here when you receive it, including the date of the letter).

Note: you will receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says: "To break out of this fixed rate early, you would have to pay a fee of €X". That amount is your break fee. Ignore all other references to break fees.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €7,640 over the next 4 years
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €4,520 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Of course, if you decide to do this, you will probably want to switch again in 5 years when your fixed rate expires and your mortgage moves onto Permanent TSB's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 7-year fixed rate (2.15% with no cashback) will save you about €3,680 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to Avant Money's 10-year fixed rate (2.3% with no cashback) will save you about €1,740 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
• Switching immediately to Avant Money's 15-year fixed rate (2.5% with no cashback) will leave you worse off by about €840 over the next 4 years – but with the even-longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.20% rate with Ulster Bank when the current fixed rate ends. And that's assuming that Ulster Bank (or Permanent TSB, if they have taken over your mortgage by then) are even offering a 2.20% rate in October 2025 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Permanent TSB, whose rates are much higher than Ulster Bank's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home, which avoids any future break fee. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €10,640 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

 

[Paul F]

I'd love to know what my break fee should be. I have called KBC in Jan, Feb, March and again today and it was virtually unchanged each time. I was hoping it would be near zero based what I have been reading here and elsewhere about the increase in market interest rates since Jan.

I cannot see how your break fee has been virtually unchanged over recent months given that wholesale interest rates have been increasing so much. Ask KBC for another break fee quote and please ask them to show their calculations (including "cost of funds" and "cost of breakage") when providing the quote.

• Current lender KBC
• Outstanding mortgage balance (how much you still owe) 280,000
• Approximate value of your property 360,000
• The date you started your fixed-rate mortgage (month and year) November 2018
• How many years you fixed for 5 years
• Your current mortgage interest rate 2.6%
• Your current monthly repayment (excluding any overpayments) 1280
• Your property's BER (Building Energy Rating) – estimated if necessary D3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? No.

My estimate of your current break fee is €520 at the moment but take that with a pinch of salt. (Can you give the dates and amounts of your recent break fee quotes?)

• Switching immediately to Permanent TSB's 5-year fixed rate (2.55% with €5,600 initial cashback and 2% monthly cashback) will save you about €3,200 over the next 4 years
• Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €2,420 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (2.15% with no cashback) will save you about €920 over the next 4 years – but with the longer security of 7 years on a fixed rate
• Switching immediately to Avant Money's 10-year fixed rate (2.3% with no cashback) will leave you worse off by about €680 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
• Switching immediately to KBC's 5-year fixed rate (2.45% with no cashback) will leave you worse off by about €960 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Of course, if you decide to do this, you will probably want to switch again in 5 years when your fixed rate expires and your mortgage moves onto Bank of Ireland's books, at which point you will be subject to their (probably higher) interest rates
• Switching immediately to Avant Money's 15-year fixed rate (2.5% with no cashback) will leave you worse off by about €2,820 over the next 4 years – but with the even-longer security of 15 years on a fixed rate

These savings estimates use for comparison the scenario of switching to the 2.30% rate with KBC when the current fixed rate ends. And that's assuming that KBC (or Bank of Ireland, if they have taken over your mortgage by then) are even offering a 2.30% rate in November 2023 – it could be higher (or lower). The estimates also account for fees and any cashback offered by the above lenders.

Note that the longer you fix for, the higher the break fee could potentially be in the future, which could be relevant if you want to move home. Of course, it's also possible for a future break fee to be small or zero. And at least some of Avant's fixed rates allow you to "take your mortgage with you" if you move home, which avoids any future break fee. It would be worth contacting them for clarification on which mortgages this applies to and on the terms and conditions.

The estimates also assume that your loan-to-value ratio (LTV) really is below 80% so that you are eligible for the listed rates. Your LTV estimate is 280.0k/360.0k = 77.8%. If you get a valuation of less than €350k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 80%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

 

[mortgagebreaker]

I cannot see how your break fee has been virtually unchanged over recent months given that wholesale interest rates have been increasing so much. Ask KBC for another break fee quote and please ask them to show their calculations (including "cost of funds" and "cost of breakage") when providing the quote.


My estimate of your current break fee is €520 at the moment but take that with a pinch of salt. (Can you give the dates and amounts of your recent break fee quotes?)

Hi @Paul F , many thanks for your reply. I would have thought that the break fee should be in the hundreds, but the most recent estimate was €2,900! I did ask them for the figures they used and they gave 0.30% as the cost of funds and -0.36% as the cost of breakage. Do those numbers line up with what you have?