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

Thanks Paul for your very detailed response, very helpful.

Considering switching to Avant 7 year, in a position thankfully that I don't need a cash lump sum in the short term and see the value more in a lower rate over the medium term (although I know that's a subjective view on where rates may go by then).

I received my break fee from Ulster Bank (15th April) and it is currently €0. Valid for 10 days which I believe is an industry norm.

Can I just check the savings above include a solicitor's fee (roughly €1600 including Vat) and valuation fee (around €160 I believe)?

With Avant I'll have to go through the broker channel, any recommendations? I've heard good reports from Doddl and Bonkers. Possibly a question for the broker but a quick scan from Avant website I see they offer mortgages up to 30, I've currently 32 years left on mine?

Thanks again,
Senan
 
CumminsSen said:
Can I just check the savings above include a solicitor's fee (roughly €1600 including Vat) and valuation fee (around €160 I believe)?
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My savings estimates assume that the solicitor's fees are €1,300 all in (i.e., including VAT and outlays) and the Avant valuation fee is €185. It should be possible to find a solicitor who quotes around €1,300 – see the three threads related to solicitors that are linked to in this post.

CumminsSen said:
With Avant I'll have to go through the broker channel, any recommendations? I've heard good reports from Doddl and Bonkers.
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I have no experience of brokers but some people here have spoken highly of Doddl.

CumminsSen said:
Possibly a question for the broker but a quick scan from Avant website I see they offer mortgages up to 30, I've currently 32 years left on mine?
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You'd have to ask a broker if Avant would do a 32-year term. Note that if you go for a 30-year term and fix for 7 years at 1.95%, your monthly repayment will be €1,212 – a €30 increase on your current monthly repayment.
 
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Ulster bank have quoted a release fee of e422 on 13/04, not far off your e500 mark.
I have since found out I quoted the wrong ber, only at a C3, which rules out Haven's green mortgage.
 
test123 said:
Ulster bank have quoted a release fee of e422 on 13/04, not far off your e500 mark.
I have since found out I quoted the wrong ber, only at a C3, which rules out Haven's green mortgage.
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If Avant won't take you for some reason, consider AIB's 5-year fixed rate (2.35% with €2,000 cashback).
 
Hi, could someone confirm my break fee, I believe it's quite low and am waiting on confirmation from KBC, I'm switching to Avant's 7 year 2.05% rate. Just don't want any surprises, I think it should be <€100.

Thanks
  • Current lender: KBC
  • Outstanding mortgage balance (how much you still owe) €217k
  • Approximate value of your property €325k
  • The date you started your fixed-rate mortgage (month and year): April 2021
  • How many years you fixed for: 2
  • Your current mortgage interest rate: 2.3%
  • Your current monthly repayment (excluding any overpayments): €1,128 (I think, fixed at €1,250 per month)
  • 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: 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 Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €1,340 over the next 4 years
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers. So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 7-year fixed rate (2.05% with no cashback) will save you about €540 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 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 €1,380 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 (2.4% with no cashback) will leave you worse off by about €2,300 over the next 4 years – but with the even-longer security of 15 years on a fixed rate

  • Switching immediately to Finance Ireland's 10-year fixed rate (2.55% with no cashback) will leave you worse off by about €3,540 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to Finance Ireland's 15-year fixed rate (2.55% with no cashback) will leave you worse off by about €3,540 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 April 2023 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay 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 Avant will waive or refund any break fee that might arise if you move home, provided you take out a new mortgage with them (subject to certain conditions). And in the case of Finance Ireland's 10-year and longer fixed rates, you can "take your mortgage with you" – meaning that you get to keep the same interest rate and avoid a break fee if you move home.
 
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Thanks Paul, good to confirm the break fee should be low or zero.

I already decided on Avant 2.05% given all the uncertainty at the moment I'd like the longer fix and plan to have it paid off in 10 years. I'm signing with solicitor tomorrow, once I have the KBC break fee I'll post it here.
 
Thanks Paul for getting back to me. Sorry it was the avant 2.05% rate not 1.95. Awaiting the letter from ulster
hi Paul, thanks so much for the detailed response. Apologies yes I meant the 7 year fix at 2.05%. Just awaiting the break fee from Ulster bank now will post back when it comes in.
 
Thanks Paul,

Having engaged with Doddl they've confirmed Avant don't write mortgages over 30 years. Given the additional monthly payments I'd need to make on top of solicitor/valuation outlays I've decided to break and refix with my current lender on same terms
 
CumminsSen said:
Having engaged with Doddl they've confirmed Avant don't write mortgages over 30 years. Given the additional monthly payments I'd need to make on top of solicitor/valuation outlays I've decided to break and refix with my current lender on same terms
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I understand the difficulty. Bear in mind that in a hypothetical scenario where you stayed on a 2.2% rate for the remainder of your UB mortgage versus switching to a 1.95% rate with Avant over 30 years, the UB mortgage would cost you an extra €26,500 in interest.

If you feel you can't switch now, reassess in a few months (before interest rates rise). If you refix now with Ulster Bank for 5 years (which is a good Plan B), you'll probably want to leave Permanent TSB in 5 years' time, because they will own your mortgage by then.
 
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Hello, be interested to see what the calculations are for me, thanks for taking the time.
  • Current lender Ulster Bank
  • Outstanding mortgage balance (how much you still owe) 209000
  • Approximate value of your property 295000
  • The date you started your fixed-rate mortgage (month and year) September 2017
  • How many years you fixed for 5 years
  • Your current mortgage interest rate 2.85
  • Your current monthly repayment (excluding any overpayments) 925.00
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary E1
  • Are you due to get extra cashback no
 
Your break fee should be around €680 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).

I am assuming that your current fixed rate ends at the end of December 2022. If it actually ends at the end of September 2022, your current break fee is only around €460.

Note: you may 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 Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €2,140 over the next 4 years
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 7-year fixed rate (2.05% with no cashback) will save you about €1,580 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 €380 over the next 4 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to Ulster Bank's 5-year fixed rate (2.45% 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 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,220 over the next 4 years – but with the even-longer security of 15 years on a fixed rate

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.55% with no cashback) will leave you worse off by about €2,440 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
    • This product has a benefit in relation to moving home in the future that is explained below
    • And your interest rate (initially 2.55%) will automatically fall as time passes and you move into lower loan-to-value (LTV) brackets. See the section "How we decide rate reductions" on this page.

These savings estimates use for comparison the scenario of switching to the 2.45% 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 2.45% rate in December 2022 – it could be higher (or lower). The estimates also account for any fees (break fee, solicitors' fees, valuation fee) that you have to pay 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.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland, if you are at least 3 years into your fixed rate you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move.

The estimates also assume that you get your loan-to-value ratio (LTV) below 70% so that you are eligible for the listed rates. Your LTV is currently 209k/295k = 70.8%. A slightly higher property valuation (€299k) and/or a few more monthly mortgage payments and/or a small overpayment will get you below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you want savings estimates for longer-term fixed rates, let me know.
 
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Hi there,
Would be very keen to see my calculations. Thank you for this great forum.


  • Current lender: KBC
  • Outstanding mortgage balance (how much you still owe): €298k
  • Approximate value of your property: €600k
  • The date you started your fixed-rate mortgage (month and year): February 2019
  • How many years you fixed for: 5
  • Your current mortgage interest rate: 2.65%
  • Your current monthly repayment (excluding any overpayments): €1,826.62
  • Your property's BER (Building Energy Rating) – estimated if necessary: C1
  • 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 Permanent TSB's 5-year fixed rate (2.55% with €5,959 initial cashback and 2% monthly cashback) will save you about €4,800 over the next 4 years
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 7-year fixed rate (1.95% with no cashback) will save you about €3,900 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €3,760 over the next 4 years

  • Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will save you about €2,260 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 €640 over the next 4 years – but with the even-longer security of 15 years on a fixed rate

  • Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €320 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 Bank of Ireland's books, at which point you will be subject to their (probably higher) interest rates

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,020 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
    • This product has a benefit in relation to moving home in the future that is explained below

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 February 2024 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland, if you are at least 3 years into your fixed rate you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move.

If you are thinking of switching to the 4-year 2.15% fixed rate with AIB, you will need to ensure that your loan-to-value ratio (LTV) really is below 50%. Your LTV estimate is 298.0k/600.0k = 49.7%. This is not a concern for any of the other rates listed above – they only require an LTV below 60%.
 
Hi there,
My details are:
  • Current lender: UB
  • Outstanding mortgage balance (how much you still owe): €332k
  • Approximate value of your property: €580k
  • The date you started your fixed-rate mortgage (month and year): 30-09-2021
  • How many years you fixed for: 2
  • Your current mortgage interest rate: 2.20%
  • Your current monthly repayment (excluding any overpayments): €1,480
  • Your property's BER (Building Energy Rating) – estimated if necessary: C3
  • 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
Have 24 year left so interested in switching to a 20 year term.

Thanks
 
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Hi,
Not currently on a fixed rate just looking for ideas on what way I can handle my below situation, thanks:

Current lender: KBC
Outstanding mortgage balance: 157k
Approximate value of your property: 340k
The date you started your fixed-rate mortgage: On variable rate
How many years you fixed for: N
Your current mortgage interest rate: 3.05%
Your current monthly repayment: 900 approx
Your property's BER: C3
Are you due to get extra cashback from your current lender in the future: No

Have 19 years remaining, may want to sell the house in 3 to 5 years and leave Ireland or could go the other way and end up staying long term.
Currently thinking about fixing for 5 years with KBC at 2.25 and seeing where we are after that, when we will be with BOI.

My current underestanding of KBC breaking fee is that it will be 0 if interest rates go up between fixing date and breaking date (which I think is more likely) but im not sure if this is the same with BOI breaking fee.

Thanks for your time!!
 
Thanks, this is a very useful thread, I noticed that depending on the day folks asked the breakage fee could be zero.

Current lender: KBC
Outstanding mortgage balance (how much you still owe): €175K
Approximate value of your property: €480K
The date you started your fixed-rate mortgage (month and year): September 2018
How many years you fixed for: 5
Your current mortgage interest rate: 2.6% (including a .2% current account discount)
Your current monthly repayment (excluding any overpayments): €1,118
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?: No

I got a breakage feed estimate from KBC today of 720. The thing that concerns us is the point raised in the second post regarding the length of time with the current lender. I'm concerned that if I wait for my mortgage to transfer to BoI at the end of the year I'll have to wait till 2024 to switch from BoI to Avant Money

Also, Avant money specifies a minimum term of 5 years, If I redeem the mortgage in less than the term (but after leaving their fixed rate) does the 1.5% charge still apply?
 
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