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

[Paul F]

Current lender: Ulster Bank
Outstanding mortgage balance (how much you still owe): €195,000 (19 years remaining)
Approximate value of your property: €750,000
The date you started your fixed-rate mortgage (month and year): Sep 2018
How many years you fixed for: 4 (so fixed rate ends this Sep 2022)
Your current mortgage interest rate: 2.6%
Your current monthly repayment (excluding any overpayments): €1,050
Your property's BER (Building Energy Rating): D1
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 around €280 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).

So the upfront costs are about €1,765 (solicitors' fees of about €1,300, a valuation fee of €185 and a break fee of about €280). But the solicitors' fees are usually only due after the switch is completed, by which time you might have built up enough savings.

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 Avant Money's 4-, 5- or 7-year fixed rate (1.95% with no cashback) will save you about €1,320 over the next 4 years – but with the longer security of up to 7 years on a fixed rate
  
  
• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €1,300 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 AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €460 over the next 4 years
  • You get the cashback about 1 to 2 months after you complete the switch
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will save you about €240 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 (2.35% with no cashback) will leave you worse off by about €100 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they 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 this Ulster Bank offer now, you will probably not be eligible to switch to one of Permanent TSB's 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).
  • There are no costs if you go this route (but you will be missing out on future savings)
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,940 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 2.35% 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 2.35% rate in October 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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May, you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

 

[galway2014]

Your break fee should be around €1,180 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 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. (The break fees of €3k to €5k refer to the maximum possible break fee in the future if you switch to that particular UB rate.)

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €7,800 initial cashback and 2% monthly cashback) will save you about €5,300 over the next 4 years
  • The monthly repayment would be €1,720
  • 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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €3,360 over the next 4 years
  • The monthly repayment would be €1,653
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €1,120 over the next 4 years
  • The monthly repayment would be €1,682
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will leave you worse off by about €160 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • The monthly repayment would be €1,691
  • Note that if you decide to do this, your mortgage move will soon move onto Permanent TSB's books, and they 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 this Ulster Bank offer now, you will not be eligible to switch to one of Permanent TSB's 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 4-, 5- or 7-year fixed rate (2.15% with no cashback) will leave you worse off by about €900 over the next 4 years – but with the longer security of up to 7 years on a fixed rate
  • The monthly repayment would be €1,682
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.3% with no cashback) will leave you worse off by about €3,140 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,711
  
  
• Switching immediately to Finance Ireland's 15-year fixed rate (2.65% with no cashback) will leave you worse off by about €8,380€7,080 over the next 4 years – but with the even-longer security of 15 years on a fixed rate
  • The monthly repayment would be €1,779
  • This product has a benefit in relation to moving home in the future that is explained below
  • And your interest rate (initially 2.65%) 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 2.20% 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 any fees (break fee, solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

The savings estimates also assume that you are currently repaying €1,769 monthly to Ulster Bank, in order to simulate having a mortgage of €390k with 25 years left (whether you stay with Ulster Bank or switch to one of the above lenders). But you will need to check with the above lenders whether or not they will give you the €50k topup that you are looking for.

Note that the Avant offer of €1,500 cashback for switchers has expired.

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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

The estimates also assume that your loan-to-value ratio (LTV) is currently 390.0k/550.0k = 70.9% (that includes a €50k topup). A slightly higher property valuation (€558k) and/or a few more monthly mortgage payments and/or a small overpayment would get you into a lower LTV bracket (< 70%), and you would be eligible for lower rates from Avant and Finance Ireland. But that is probably not a good 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 €6,360 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.

If you want savings estimates for longer-term fixed rates, let me know.

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your Avant application into them and accepted by 13 May, you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

A question for you: Did Ulster Bank tell you that the deadline for topups has passed? Because this FAQ page seems to say that the deadline is 10 June.

In this scenario @Paul F I presume that the UB 5 year fixed would be better than the AIB Green 5 year fixed as you won't have to pay solicitors fees if you stay with UB ? Am I correct in saying that ?

 

[Paul F]

In this scenario @Paul F I presume that the UB 5 year fixed would be better than the AIB Green 5 year fixed as you won't have to pay solicitors fees if you stay with UB ? Am I correct in saying that ?

No – the savings estimates already account for that difference (the fact that you have to pay solicitors' fees and the valuation fee if switching to AIB but not if you are staying with Ulster Bank).

 

[Paul F]

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe) - €168,000
• Approximate value of your property - €345,000
• The date you started your fixed-rate mortgage - currently on variable of 3.15% LTV > 80%
• How many years you fixed for - NA
• Your current mortgage interest rate - 3.15%
• Your current monthly repayment - Pay fornightly €508
• Your property's BER (Building Energy Rating) – C1 approximately

Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €6,020 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 4-, 5- or 7-year fixed rate (1.95% with no cashback) will save you about €6,000 over the next 4 years – but with the longer security of up to 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 €5,060 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to AIB's 5-year fixed rate (2.35% with no cashback) will save you about €4,860 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.25% fixed rate with no cashback) will save you about €4,000 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
  • You would have to shorten your mortgage term to 15 years to be eligible for this rate
  • The monthly repayment would be €1,101
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will save you about €3,200 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 staying on the variable rate with AIB and assume that that rate doesn't change between now and May 2026 (which is unlikely). 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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May, you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

 

[Cathbarr]

The safest option (given that Avant have just announced a rate increase and other lenders will probably follow suit soon) might be to tell AIB that you want to break out of your current fixed rate now and you want to re-fix immediately for 5 years at the same rate (effectively "resetting the clock").

When that is done you can overpay at your leisure. Technically, you should ask them for a break fee quote after you have re-fixed but before you overpay, but it is very likely to be zero. (When I called last week to get a break fee quote, they posted it out within a week.)

I and others have found that all you need to do to make an overpayment is transfer the money from your current account to your mortgage account. See this thread. To be safe, you should only do this within the window that the letter says the break fee quote is valid for.

Thanks for the information Paul. I have informed the bank of our intentions to do all this but the girl on the phone told me I couldn't do anything until we are moved to the variable rate. Which could take up to 10 days. I will give them a call on Thursday once our mortgage has been paid and see if I can email the forms to them that evening stating our intentions. See what they say. I have the money in my current account now to transfer so it should all be in order. As you say noone knows how fast other banks will rise their rates. The date they gave me to inform them of our intentions to break out of the fixed contract was tomorrow.

I also want to reduce our term so having read the quoted thread it seems by transferring the money directly will just reduce the monthly repayments. So I will stick with it for another couple of days and see what happens then.

 

[kopkidda]

"Switching immediately to AIB's 5-year fixed rate (2.35% with no cashback) will save you about €4,860 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed)."

Great thread Paul and some lovely information,thanks for getting back to me.

I presume to get onto this <50 % rate all I need to do is fill out AIB's request form which I have and also send them the valuation report which I have got today?

 

[Paul F]

I presume to get onto this <50 % rate all I need to do is fill out AIB's request form which I have and also send them the valuation report which I have got today?

I think so (assuming the valuation was done by one of AIB's panel of valuers).

 

[kopkidda]

I think so (assuming the valuation was done by one of AIB's panel of valuers).

Ye it was,thanks

 

[Hennessy1986]

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe) - €150k
• Approximate value of your property - €400k
• The date you started your fixed-rate mortgage (month and year) - Currently on variable rate 2.95% and 15yrs remaining
• How many years you fixed for - Not fixed on variable rate
• Your current mortgage interest rate - 2.95 variable
• Your current monthly repayment (excluding any overpayments) - €1,032
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - Awainting inspection, would be hoping its an A rating new build. Do not have BER yet.
• 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 cashback option

 

[Leighlinboy]

Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €11,480 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 €10,180 over the next 4 years
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Avant Money's 4-, 5- or 7-year fixed rate (2.05% with no cashback) will save you about €9,020 over the next 4 years – but with the longer security of up to 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 €7,720 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 save you about €6,860 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Note that if you decide to do this, your mortgage move will soon move onto Bank of Ireland's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Bank of Ireland customer, the best rate you would be able to switch to today is 3%
  • So if you switch to this KBC offer now, you will probably not be eligible to switch to one of Bank of Ireland's 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 "One Mortgage" (a 2.4% fixed rate with no cashback) will save you about €5,780 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
  • You would have to shorten your mortgage term to 15 years to be eligible for this rate
  • The monthly repayment would be €1,556
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.55% with no cashback) will save you about €4,660 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 staying on the variable rate with KBC and assume that that rate doesn't change between now and May 2026 (which is unlikely). 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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May, you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

Many thanks for the detailed prompt response !

 

[Paul F]

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe) - €150k
• Approximate value of your property - €400k
• The date you started your fixed-rate mortgage (month and year) - Currently on variable rate 2.95% and 15yrs remaining
• How many years you fixed for - Not fixed on variable rate
• Your current mortgage interest rate - 2.95 variable
• Your current monthly repayment (excluding any overpayments) - €1,032
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - Awainting inspection, would be hoping its an A rating new build. Do not have BER yet.
• 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 cashback option

Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €5,700 over the next 4 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with no cashback) will save you about €4,460 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed – just your BER cert and possibly a valuation).
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Avant Money's 4-, 5- or 7-year fixed rate (1.95% with no cashback) will save you about €3,940 over the next 4 years – but with the longer security of up to 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 €3,120 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.25% fixed rate with no cashback) will save you about €2,320 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (15 years)
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will save you about €1,500 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 staying on the variable rate with AIB and assume that that rate doesn't change between now and May 2026 (which is unlikely). 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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May, you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

 

[masterboy123]

@Paul F

Thank you for helping me and others out there on this forum.
We have saved money with your expert advice

Summary:
Switched from PTSB (2.95%) to AIB (2.15%).
Started process using AIB's online mortgage tool on 29 January 2022. The documents took several weeks to get verified. It was a painful process and you need to be patience.
Final mortgage transferred on 9th May. Overall, it took 3 months. And savings of €6000.

Happy days

 

[fugee1]

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe) €220k
• Approximate value of your property €450k
• The date you started your fixed-rate mortgage (month and year) Variable with 20 years left
• How many years you fixed for NA
• Your current mortgage interest rate 2.95% variable
• Your current monthly repayment (excluding any overpayments) 1250
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary C2
• 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

 

[Storyman]

Please find my details below. Thanks in advance.

• Current lender Ulsterbank
• Outstanding mortgage balance (how much you still owe) 167,600
• Approximate value of your property 300,000
• The date you started your fixed-rate mortgage (month and year) Sep 2018
• How many years you fixed for 5
• Your current mortgage interest rate 2.99%
• Your current monthly repayment (excluding any overpayments) 800.60
• Your property's BER (Building Energy Rating) – B3
• 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

 

[B.Springsteen]

• Current lender : KBC
• Outstanding mortgage balance (how much you still owe) 134000
• Approximate value of your property 300000
• The date you started your fixed-rate mortgage (month and year) July 2019
• How many years you fixed for 5 years
• Your current mortgage interest rate 2.6
• Your current monthly repayment (excluding any overpayments) 683.80
• Your property's BER (Building Energy Rating) – check it here or estimate it 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

 

[YossiB]

Here goes! Any advice would be most welcome

Current lender: AIB
Outstanding mortgage balance: 190K
Approximate value of your property: 750K
The date you started your fixed-rate mortgage: on SVR
Your current mortgage interest rate: 2.75%
Your current monthly repayment: €1180
Your property's BER: N/A won't qualify for A or B (or C for that matter)
Are you due to get extra cashback from your current lender in the future: No

What's guiding my thinking is I believe there will be a number of interest rate hikes coming down the line in the next year, with 2-3 hikes of 0.25% possible in the next 6-9 months alone. So I'm thinking that fixing for 10 years to future proof against any further increases.

I see Avant are offering much better in terms of rates, but most of our daily life is bundled in with AIB - Home Insurance, Car Insurance, Current Account and Mortgage. Obviously there's discounts applied for having all those services, but quantifying these discounts can be hard.

For ease, I think I'd be happy to accept 3.10% fixed at 10 years with AIB, or am I mad?

 

[Paul F]

• Current lender - AIB
• Outstanding mortgage balance (how much you still owe) €220k
• Approximate value of your property €450k
• The date you started your fixed-rate mortgage (month and year) Variable with 20 years left
• How many years you fixed for NA
• Your current mortgage interest rate 2.95% variable
• Your current monthly repayment (excluding any overpayments) 1250
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary C2
• 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

Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €6,760 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 4-, 5- or 7-year fixed rate (1.95% with no cashback) will save you about €6,720 over the next 4 years – but with the longer security of up to 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 €5,500 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to AIB's 5-year fixed rate (2.35% with no cashback) will save you about €4,780 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will save you about €3,040 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
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.45% fixed rate with no cashback) will save you about €2,640 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 19 years)

These savings estimates use for comparison the scenario of staying on the variable rate with AIB and assume that that rate doesn't change between now and May 2026 (which is unlikely). 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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

The estimates also assume that your loan-to-value ratio (LTV) really is below 50% so that you are eligible for the listed rates. Your LTV estimate is 220.0k/450.0k = 48.9%. If you get a valuation of less than €440k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 50%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May (very difficult), you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

 

[Paul F]

• Current lender Ulsterbank
• Outstanding mortgage balance (how much you still owe) 167,600
• Approximate value of your property 300,000
• The date you started your fixed-rate mortgage (month and year) Sep 2018
• How many years you fixed for 5
• Your current mortgage interest rate 2.99%
• Your current monthly repayment (excluding any overpayments) 800.60
• Your property's BER (Building Energy Rating) – B3
• 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 around €160 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 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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €4,100 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 €3,160 over the next 4 years
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Avant Money's 4-, 5- or 7-year fixed rate (1.95% with no cashback) will save you about €2,400 over the next 4 years – but with the longer security of up to 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 €1,440 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Ulster Bank's 4-year fixed rate (2.35% with no cashback) will save you about €1,320 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they 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 this Ulster Bank offer now, you will probably not be eligible to switch to one of Permanent TSB's 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 Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €480 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 2.35% 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 2.35% rate in October 2023 – 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.

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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May (very difficult), you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

If you want savings estimates for longer-term fixed rates, let me know.

 

[Paul F]

• Current lender : KBC
• Outstanding mortgage balance (how much you still owe) 134000
• Approximate value of your property 300000
• The date you started your fixed-rate mortgage (month and year) July 2019
• How many years you fixed for 5 years
• Your current mortgage interest rate 2.6
• Your current monthly repayment (excluding any overpayments) 683.80
• Your property's BER (Building Energy Rating) – check it here or estimate it 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

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 €1,040 over the next 4 years
  
  
• Switching immediately to Avant Money's 4-, 5- or 7-year fixed rate (1.95% with no cashback) will save you about €1,020 over the next 4 years – but with the longer security of up to 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 €260 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 (2.4% with no cashback) will save you about €100 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • Note that if you decide to do this, your mortgage will soon move onto Bank of Ireland's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Bank of Ireland customer, the best rate you would be able to switch to today is 3%
  • So if you switch to this KBC offer now, you will probably not be eligible to switch to one of Bank of Ireland's 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 Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,240 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 July 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.

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.

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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May (very difficult), you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

If you want savings estimates for longer-term fixed rates, let me know.

 

[Paul F]

Current lender: AIB
Outstanding mortgage balance: 190K
Approximate value of your property: 750K
The date you started your fixed-rate mortgage: on SVR
Your current mortgage interest rate: 2.75%
Your current monthly repayment: €1180
Your property's BER: N/A won't qualify for A or B (or C for that matter)
Are you due to get extra cashback from your current lender in the future: No

Because you are on a variable-rate mortgage, you do not have to pay a break fee.

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €4,200 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 4-, 5- or 7-year fixed rate (1.95% with no cashback) will save you about €4,080 over the next 4 years – but with the longer security of up to 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 €3,040 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to AIB's 5-year fixed rate (2.35% with no cashback) will save you about €2,640 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.25% fixed rate with no cashback) will save you about €1,940 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
  • You would have to shorten your mortgage term to 15 years to be eligible for this rate
  • The monthly repayment would be €1,245
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will save you about €960 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
  
  
• Switching immediately to AIB's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €1,560 over the next 4 years – but with the even-longer security of 7 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to AIB's 10-year fixed rate (3.1% with no cashback) will leave you worse off by about €2,620 over the next 4 years – but with the even-longer security of 10 years on a fixed rate. And 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 staying on the variable rate with AIB and assume that that rate doesn't change between now and May 2026 (which is unlikely). 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 you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

Note that Avant are about to increase some of their rates (but not their 4-year fixed rate for the moment). But if your broker gets your application into Avant and accepted by 13 May (very difficult), you will be eligible for the non-increased rates.

Avant to raise 5-20 year fixed rates, but lowers 30 year rate to 2.5%! (May 2022)

Avant will raise their 5-, 7-, 10-, 15-, and 20-year fixed rates for applications received after May 13th. The increases are of the order of 20-to-30 bps. https://www.rte.ie/news/business/2022/0506/1296524-avant-money-to-increase-some-mortgage-rates/ Their 3- and 4-year rates will remain...

www.askaboutmoney.com

I see Avant are offering much better in terms of rates, but most of our daily life is bundled in with AIB - Home Insurance, Car Insurance, Current Account and Mortgage. Obviously there's discounts applied for having all those services, but quantifying these discounts can be hard.

For ease, I think I'd be happy to accept 3.10% fixed at 10 years with AIB, or am I mad?

I'm not familiar with the discounts due to bundling but are you sure that any of them depend on having your mortgage with AIB?

The above estimates show that AIB's 10-year 3.1% fixed rate will cost you about €5,260 extra compared to their 5-year 2.35% rate (over the next 4 years). But only you can decide how much you value medium-term savings over the security of a longer period on a known rate.