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

[The Oggster]

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): €160,000
• Approximate value of your property: €380,000
• The date you started your fixed-rate mortgage (month and year): I think it was January 2019. I will check later and update if necessary
• How many years you fixed for: 5
• Your current mortgage interest rate: 2.6% (that's including 0.2% discount)
• Your current monthly repayment (excluding any overpayments): €768
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: B2
• 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? N/A

We're also moving current account and credit card.

Just an add on question, can you get a top up when you're in a fixed rate? Or do you have to break and refix?

 

[Mick_D]

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): €295,000
• Approximate value of your property: €650,000
• The date you started your fixed-rate mortgage (month and year): December 2020.
• How many years you fixed for: 2
• Your current mortgage interest rate: 2.25% (that's including 0.2% discount)
• Your current monthly repayment (excluding any overpayments): €1408
• Your property's BER (Building Energy Rating) – check it here or estimate it 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

 

[Paul F]

• The date you started your fixed-rate mortgage (month and year): I think it was January 2019. I will check later and update if necessary

@The Oggster Did you get a chance to check this?

 

[Paul F]

• Current lender: AIB
• Outstanding mortgage balance (how much you still owe) 232,000
• Approximate value of your property 650000
• The date you started your fixed-rate mortgage (month and year) currently on variable rate
• How many years you fixed for n/a
• Your current mortgage interest rate. 2.75%
• Your current monthly repayment (excluding any overpayments) €2030
• Your property's BER (Building Energy Rating) – check it here or estimate it 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

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 €6,480 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 €5,680 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 green fixed rate (2.1% with no cashback) will save you about €5,000 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • 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-year fixed rate (1.95% with no cashback) will save you about €4,840 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €3,260 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €2,480 over the next 4 years – but with the even-longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will save you about €1,280 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 10-year fixed rate (2.4% with no cashback) will save you about €1,280 over the next 4 years – but with the even-longer security of 10 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 2.4% fixed rate with no cashback) will save you about €1,280 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 11 years)
  
  
• Switching immediately to AIB's 10-year fixed rate (3.1% with no cashback) will leave you worse off by about €2,960 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).

Would like to be able to overpay.

See this thread for the overpayment policy of the various lenders. Note that even if a lender does not allow overpayments without penalty, that penalty can sometimes be small or even zero. (It depends in part on the change in interbank rates between when you fix and when you overpay, which is hard to predict.)

 

[Paul F]

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): €295,000
• Approximate value of your property: €650,000
• The date you started your fixed-rate mortgage (month and year): December 2020.
• How many years you fixed for: 2
• Your current mortgage interest rate: 2.25% (that's including 0.2% discount)
• Your current monthly repayment (excluding any overpayments): €1408
• Your property's BER (Building Energy Rating) – check it here or estimate it 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 €5,900 initial cashback and 2% monthly cashback) will save you about €3,620 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-year fixed rate (1.95% with no cashback) will save you about €3,260 over the next 4 years
  
  
• Switching immediately to AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €3,080 over the next 4 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €1,600 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €1,040 over the next 4 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €480 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €80 over the next 4 years – but with the even-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 €420 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 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 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,740 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,740 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 2.40% 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 2.40% rate in December 2022 – 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 (and it might be impossible to switch if your financial situation has deteriorated).

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).

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

 

[Mick_D]

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 Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €3,260 over the next 4 years
  
  
• Switching immediately to AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €3,080 over the next 4 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €1,600 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €1,040 over the next 4 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €480 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €80 over the next 4 years – but with the even-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 €420 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 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 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,740 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,740 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 2.40% 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 2.40% rate in December 2022 – 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 (and it might be impossible to switch if your financial situation has deteriorated).

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).

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

Thanks so much.

I should have said I can break for free. I only got the letter today. I am trying to decide on re-fixing with KBC for 3 years on the same rate now or going with AIB 4 year 2.15%.
Just can't decide.

If I fix for 3 years with KBC now (for security) would I face a big break fee in say 2 or 3 months time if I decide to switch bank?

 

[Paul F]

I am trying to decide on re-fixing with KBC for 3 years on the same rate now or going with AIB 4 year 2.15%.
Just can't decide.

Switching immediately to AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €1,380 over the next 3 years (versus immediately breaking out of your current KBC rate and re-fixing with them for 3 years at 2.25%).

If I fix for 3 years with KBC now (for security) would I face a big break fee in say 2 or 3 months time if I decide to switch bank?

In your particular case you are probably more likely to have a break fee/a larger break fee in 2 or 3 months' time if you re-fix now for 2 or 3 years (versus staying on your current rate). I.e., staying on your current rate is probably the better way to try to have a zero or small break fee in a few months (but there are no guarantees).

On the other hand, AIB or KBC (or any other lender) could raise their rates at any time, which is a reason to consider breaking and re-fixing now with KBC. You could still pursue the switch to AIB after doing this (if you want to), but there might be a break fee when you finally switch to AIB and/or AIB might have put up their rates by then.

 

[gvn1509]

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): €285k
• Approximate value of your property: €440k
• The date you started your fixed-rate mortgage (month and year): Dec 2020
• How many years you fixed for: 3
• Your current mortgage interest rate: 2.3%
• Your current monthly repayment (excluding any overpayments): €1,315
• 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

Thanks

 

[Mick_D]

On the other hand, AIB or KBC (or any other lender) could raise their rates at any time, which is a reason to consider breaking and re-fixing now with KBC. You could still pursue the switch to AIB after doing this (if you want to), but there might be a break fee when you finally switch to AIB and/or AIB might have put up their rates by then.

This is my thinking also. I was working with a broker for the Avant 1.95% 7 year rate. Then they raised the rate and I wouldnt make the July cut-off. I would be really pissed if the same thing happened when applying for the AIB 4 year. It takes one email to fix with KBC for 3 years.

Thanks again.

 

[Parazard2]

• Current lender: Ulster Bank
• Outstanding mortgage balance (how much you still owe): €208k
• Approximate value of your property: €430k
• The date you started your fixed-rate mortgage (month and year): June 2021
• How many years you fixed for: 2
• Your current mortgage interest rate: 2.2%
• Your current monthly repayment (excluding any overpayments): €914
• Your property's BER (Building Energy Rating) – estimated if necessary: Original one was G, current one unknown - property 100+ years old; had extension built which may have improved BER?
• 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

Keen to make overpayments within 6 months, some extra cash would be handy in the short-term. Thanks in advance!

 

[mellenh]

• current lender: KBC
• Outstanding mortgage balance (how much you still owe): €150,000
• Approximate value of your property: €350k
• The date you started your fixed-rate mortgage (month and year): Not fixed (ported tracker from old mortgage)
• How many years you fixed for: Not fixed. (19 years 2 months remaining on term)
• Your current mortgage interest rate: 2.5%
• Your current monthly repayment (excluding any overpayments): €856
• 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

Please ignore if this is only for fixed rate. We ported our tracker with KBC when we moved house. Everyone says to not give up tracker but interest rate is higher than fixed rate!
Appreciate any help.

 

[Sportage]

KBC's 10-year fixed rate is 2.85%, not 2.8%. I've updated my post with the savings/cost estimate for switching to that rate:

• Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €2,800 over the next 3 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).
  • The monthly repayment would be €1,205
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply

Over ten years, the KBC 10-year rate will cost you an extra €3,600 compared to the Avant or Finance Ireland 10-year 2.4% fixed rate (and that's after allowing for the fact that a switch to Avant or Finance Ireland involves fees). So, is the convenience of re-fixing with KBC worth €3,600 to you?


If you shorten the term, your monthly payment will increase, not decrease.


Breaking out of a standard 10-year fixed rate (e.g., KBC's 10-year fixed rate) can sometimes be very expensive. It depends on what happens to interbank rates in the future.

But as I said before, 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).

Those two lenders also put caps on the break fees they charge, in case you are paying off your mortgage early but not trading up.

Thanks Paul. Really appreciate this.

We ended up going with the KBC 5 year fixed at 2.4%. Will see what the world is like in 5 years time (or before if interest rates rise and fall again during that period and a switch comes into play!).

 

[LolaJay]

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): 400,000
• Approximate value of your property: 650,000
• The date you started your fixed-rate mortgage (month and year): October 2018
• How many years you fixed for: 5 years
• Your current mortgage interest rate: 2.65%
• Your current monthly repayment (excluding any overpayments): 1,765.92
• 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

Thanks very much!

 

[barneyrubble]

Hi

• Current lender; UB
• Outstanding mortgage balance (how much you still owe): 219053 (181,552 fixed/37501 tracker)
• Approximate value of your property 320000
• The date you started your fixed-rate mortgage (month and year) Oct 2017
• How many years you fixed for 7
• Your current mortgage interest rate fixed 3.99, tracker base +2.5%
• Your current monthly repayment (excluding any overpayments) €1145.00
• Your property's BER (Building Energy Rating) – check it here or estimate it 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

Thinking of trying to release maybe 20k equity if we switch. Can that be done?

 

[Jimmy2times9999]

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). In your case, it is extra volatile because there is so long left on your fixed rate.

• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €2,750 over the next 4 years versus staying on your current rate – and is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed), and there are no fees, except possibly a valuation fee (€150)

Of course, if you decide to stay with KBC and switch to their 2.4% rate, you might 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. Unless you are then in a position to pay off a large part of your remaining balance, which would mean that higher interest rates wouldn't matter as much.

• Switching immediately to Haven Mortgages Limited's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €4,860 over the next 4 years
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €4,460 over the next 4 years
• Switching immediately to Avant Money's 7-year fixed rate (1.95% with no cashback) will save you about €3,020 over the next 4 years
• Switching immediately to Avant Money's 10-year fixed rate (2.1% with no cashback) will save you about €2,440 over the next 4 years

These savings estimates use for comparison the scenario of doing nothing, and assume that your monthly repayment continues at €660, i.e., you continue the €100/month overpayment. The estimates also account for fees and cashback.

For any of the above products (rates), you may incur a break fee if you pay off a large part of the mortgage before the fixed term expires, so think about when you might be making this large payment and choose the product with the most-appropriate fixed term for your needs.

Note: the Avant savings estimates assume that you are not eligible for the €1,500 cashback. To be eligible, the switch to Avant has to be underway before the end of March and you must use a broker who is an Avant "Gold Partner". I don't know what "underway" means but if you are inclined to try to beat the deadline you could talk to an Avant Gold Partner as soon as possible and see if it is possible.

FYI

I was indeed quoted a zero break fee from KBC, and have since moved to the variable, and have a request sent in this week to move to the 2.40% 5 year fixed. Zero break fee was dated end of April.

Thanks again. Fantastic thread and information.

 

[Paul F]

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): €285k
• Approximate value of your property: €440k
• The date you started your fixed-rate mortgage (month and year): Dec 2020
• How many years you fixed for: 3
• Your current mortgage interest rate: 2.3%
• Your current monthly repayment (excluding any overpayments): €1,315
• 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

Thanks

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 green fixed rate (2.35% with €5,700 initial cashback and 2% monthly cashback) will save you about €4,560 over the next 3 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 Haven's 3-year fixed rate (2.35% with €5,000 cashback) will save you about €3,120 over the next 3 years
  
  
• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €3,000 over the next 3 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €1,780 over the next 3 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 Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €1,480 over the next 3 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €660 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 (2.45% with no cashback) will leave you worse off by about €1,400 over the next 3 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 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 7-year fixed rate (2.35% with no cashback) will leave you worse off by about €1,900 over the next 3 years – but with the even-longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will leave you worse off by about €3,140 over the next 3 years – but with the even-longer security of 10 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 €3,560 over the next 3 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 immediately breaking and re-fixing with KBC at the 2.3% 3-year rate in order to "reset the clock". 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).

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 €6,000 in three 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.

 

[gvn1509]

Thank you. Also considering tweaking this and using savings for <60% LTV. Would you mind calculating? Thanks very much.

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): €260k
• Approximate value of your property: €440k
• The date you started your fixed-rate mortgage (month and year): Dec 2020
• How many years you fixed for: 3
• Your current mortgage interest rate: 2.3%
• Your current monthly repayment (excluding any overpayments): €1,315
• 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

 

[Paul F]

• Current lender: Ulster Bank
• Outstanding mortgage balance (how much you still owe): €208k
• Approximate value of your property: €430k
• The date you started your fixed-rate mortgage (month and year): June 2021
• How many years you fixed for: 2
• Your current mortgage interest rate: 2.2%
• Your current monthly repayment (excluding any overpayments): €914
• Your property's BER (Building Energy Rating) – estimated if necessary: Original one was G, current one unknown - property 100+ years old; had extension built which may have improved BER?
• 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 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 Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €1,340 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €200 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will leave you worse off by about €260 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.35% with no cashback) will leave you worse off by about €360 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).
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €1,040 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 (2.4% with no cashback) will leave you worse off by about €2,240 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €2,240 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
  
  
• Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.8% with no cashback) will leave you worse off by about €3,940 over the next 4 years – but with the even-longer security of 7 or 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • The same warnings as above regarding higher Permanent TSB rates in the future apply

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 July 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 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 (and it might be impossible to switch if your financial situation has deteriorated).

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 208.0k/430.0k = 48.4%. If you get a valuation of less than €416k, 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.

Some of the above lenders will only let you switch to them if you have had a mortgage with your current lender for at least 12 months. (Maybe you meet this condition already.) See this thread for more details.

Note that because the property is over 100 years old you will need a structural survey, and the above savings estimates don't account for that cost. If that survey shows certain types of problems, some lenders won't let you switch to them (see this case).

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

Keen to make overpayments within 6 months, some extra cash would be handy in the short-term. Thanks in advance!

See this thread for information on the overpayments allowed by various lenders.

 

[Spritzer]

• Current lender: UB
• Outstanding mortgage balance (how much you still owe): €127k
• Approximate value of your property: €380k
• The date you started your fixed-rate mortgage (month and year): sept2018
• How many years you fixed for: 4
• Your current mortgage interest rate: 2.6%
• Your current monthly repayment (excluding any overpayments): €860apprx
• Your property's BER (Building Energy Rating) – estimated if necessary: n/a
• 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

Hi my query is as follows:
- can't move provider as currently on probation in new employment
-have 14 years left but want to over pay to clear in10
- quoted 175 break fee from ub. Term ends on 30 Sept 22
- best options with UB 5yr fixed at 2.35 or 10 year at 2.8.

I think we prefer the security of the 10 year fixed rate but want confirmation that it's sensible to fix at this rate. Also would ub still charge break fee if we Are fixing at higher rate than current fixed rated.

Concern of rate increases before we can fix with no break fee

Thanks

 

[Paul F]

• Current lender: KBC
• Outstanding mortgage balance (how much you still owe): 400,000
• Approximate value of your property: 650,000
• The date you started your fixed-rate mortgage (month and year): October 2018
• How many years you fixed for: 5 years
• Your current mortgage interest rate: 2.65%
• Your current monthly repayment (excluding any overpayments): 1,765.92
• 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 Permanent TSB's 3-year fixed rate (2.5% with €7,998 initial cashback and 2% monthly cashback) will save you about €6,880 over the next 3 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 Permanent TSB's 5-year fixed rate (2.55% with €7,998 initial cashback and 2% monthly cashback) will save you about €6,300 over the next 3 years
  • The same warnings as above regarding higher Permanent TSB rates in the future apply
  
  
• Switching immediately to Haven's 3-year fixed rate (2.35% with €5,000 cashback) will save you about €4,600 over the next 3 years
  
  
• Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €3,340 over the next 3 years
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.05% with no cashback) will save you about €3,040 over the next 3 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €2,260 over the next 3 years
  
  
• Switching immediately to KBC's 3-year fixed rate (2.3% with no cashback) will save you about €1,480 over the next 3 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 Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €1,100 over the next 3 years – but with the even-longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.25% with no cashback) will save you about €720 over the next 3 years
  
  
• Switching immediately to KBC's 5-year fixed rate (2.45% with no cashback) will leave you worse off by about €280 over the next 3 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.35% with no cashback) will leave you worse off by about €440 over the next 3 years – but with the even-longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will leave you worse off by about €2,200 over the next 3 years – but with the even-longer security of 10 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 €2,780 over the next 3 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 2.25% 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 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.

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 400.0k/650.0k = 61.5%. A slightly higher property valuation (€667k) and/or a few more monthly mortgage payments and/or a small overpayment would get you into a lower LTV bracket (< 60%), and you would be eligible for lower rates from Avant, KBC 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 want savings estimates for longer-term fixed rates, let me know.