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

[Paul F]

• 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

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

If you switch to any of the below products you will no longer have your tracker.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,660 over the next 3 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €2,240 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 KBC's 3-year fixed rate (2.25% with no cashback) will save you about €900 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).
  • You would no longer have your tracker in this scenario
  
  
• Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €840 over the next 3 years
  
  
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €260 over the next 3 years. 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 Bank of Ireland rates in the future apply
  • You would no longer have your tracker in this scenario
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you nothing (and cost you nothing) over the next 3 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% 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 (2.4% with no cashback) will leave you worse off by about €1,060 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 (2.4% with no cashback) will leave you worse off by about €1,060 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
  
  
• Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €1,660 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 same warnings as above regarding higher Bank of Ireland rates in the future apply
  • You would no longer have your tracker in this scenario

These savings estimates use for comparison the scenario of staying on the tracker rate with KBC and assume that that rate doesn't change between now and May 2025 (which is very 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.

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.

 

[Paul F]

Outstanding mortgage balance (how much you still owe): 219053 (181,552 fixed/37501 tracker)

@barneyrubble Do the non-tracker portion (€181,552) and the tracker portion have the same term? I.e., do they both finish in approximately 25 years? I'm not referring to how long you fixed for, rather the full term of the non-tracker portion and the full term of the tracker portion.

 

[Paul F]

• 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

I will assume that you fixed in January 2019.

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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,600 over the next 3 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €2,140 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 Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €800 over the next 3 years
  
  
• Switching immediately to KBC's 3-year fixed rate (2.25% with no cashback) will save you about €740 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 KBC's 5-year fixed rate (2.4% with no cashback) will save you about €60 over the next 3 years. 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 Bank of Ireland rates in the future apply
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will leave you worse off by about €120 over the next 3 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €580 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 (2.4% with no cashback) will leave you worse off by about €1,280 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 (2.4% with no cashback) will leave you worse off by about €1,280 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
  
  
• Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €2,040 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 same warnings as above regarding higher Bank of Ireland rates in the future apply

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 January 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 (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.

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?

I would be surprised if you have to break and re-fix to get a top-up mortgage on a fixed rate – but it may depend on the specific lender. Consider posting your question in this thread or this thread. AIB have a section of their website dedicated to topup mortgages.

 

[iceblue]

Hi Paul

We are considering switching to Avant 3 or 4yrs fixed at 1.95% from:

• Current lender. BOI
• Outstanding mortgage balance €235k
• Approximate value of your property €420k
• The date you started your fixed-rate mortgage (month and year) Jan 2020
• How many years you fixed for. Was fixed for 2yrs. Expired in Jan 22 but letter came stating fixed rate 2.9% expires in Jul 22. Not sure how the extra six months transpired but it has.
• Your current mortgage interest rate 2.9%
• Your current monthly repayment €1202 incl 10% overpayment (excluding any overpayments €1080)
• Your property's BER (Building Energy Rating) C
• Are you due to get extra cashback from your current lender. If so, how much and when? Already got it. Reached 5yrs with BOI in Jan 22 so full 3% cashback is received.

Other info.
We also pay additional lump sums of 10k once per year off the mortgage. Break fees have been miniscule. Hope to keep this going where possible.
Not overly keen on the several quick switches strategies out there.

Is Avant the best option?

Thanks

 

[barneyrubble]

@barneyrubble Do the non-tracker portion (€181,552) and the tracker portion have the same term? I.e., do they both finish in approximately 25 years? I'm not referring to how long you fixed for, rather the full term of the non-tracker portion and the full term of the tracker portion.

Yes they do, 24 years and 4 months left

 

[Paul F]

• 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

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.

All of the below savings estimates assume that you take out a mortgage with a term of about 24 years, and that the entire amount is fixed. (The new mortgage will not be a split mortgage and you will no longer have your tracker.)

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €13,420 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 (2.05% with no cashback) will save you about €12,760 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €11,440 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.25% with no cashback) will save you about €11,080 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.45% with no cashback) will save you about €10,900 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • You would no longer have your tracker in this scenario
  • 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
  • The same warnings as above regarding higher Permanent TSB rates in the future apply
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.35% with no cashback) will save you about €10,260 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 (2.5% with no cashback) will save you about €9,000 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 (2.55% with no cashback) will save you about €8,580 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.
  
  
• Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.95% with no cashback) will save you about €6,700 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).
  • You would no longer have your tracker in this scenario
  • The same warnings as above regarding higher Permanent TSB rates in the future apply

These savings estimates use for comparison the scenario of staying on the current arrangement with Ulster Bank and assume that its rates (both the tracker rate and the fixed rate) don't change between now and May 2026 (which is very 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 70% so that you are eligible for the listed rates. Your LTV estimate is 219.1k/320.0k = 68.5%. If you get a valuation of less than €313k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

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

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

You will need to research the attitudes of the various lenders to giving topup mortgages. Have a look at this thread and this thread, and contact the lenders themselves. AIB have a section of their website dedicated to topup mortgages.

 

[Paul F]

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

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,200 initial cashback and 2% monthly cashback) will save you about €3,920 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 €3,000 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 €2,600 over the next 3 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €1,500 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 €1,480 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 7-year fixed rate (2.65% with €5,000 cashback) will save you about €760 over the next 3 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will leave you worse off by about €1,080 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 (2.25% with no cashback) will leave you worse off by about €1,300 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 (2.4% with no cashback) will leave you worse off by about €2,420 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 (2.4% with no cashback) will leave you worse off by about €2,420 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

These savings estimates use for comparison the scenario of making a lump sum overpayment of €25k to KBC and then breaking and re-fixing on their 3-year fixed rate (2.25%) – and continuing to pay €1,315 monthly, meaning that your mortgage term will be shortened by a few years. Therefore, all of the above estimates are for the shortened mortgage term (about 21 years).

If you get a valuation higher than €440k, you can get away with making a smaller lump sum overpayment and you will still get into the ≤60% loan-to-value bracket.

The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders. Don't be fooled into thinking that the savings are bigger by staying in your current (60% to 70%) LTV bracket. Remember that this reply and my last reply use different baseline scenarios.

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 €5,600 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.

 

[mellenh]

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

If you switch to any of the below products you will no longer have your tracker.

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €2,660 over the next 3 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €2,240 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 KBC's 3-year fixed rate (2.25% with no cashback) will save you about €900 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).
  • You would no longer have your tracker in this scenario
  
  
• Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €840 over the next 3 years
  
  
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €260 over the next 3 years. 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 Bank of Ireland rates in the future apply
  • You would no longer have your tracker in this scenario
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you nothing (and cost you nothing) over the next 3 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% 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 (2.4% with no cashback) will leave you worse off by about €1,060 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 (2.4% with no cashback) will leave you worse off by about €1,060 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
  
  
• Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €1,660 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 same warnings as above regarding higher Bank of Ireland rates in the future apply
  • You would no longer have your tracker in this scenario

These savings estimates use for comparison the scenario of staying on the tracker rate with KBC and assume that that rate doesn't change between now and May 2025 (which is very 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.

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.

Thank you so much- really appreciate you taking the time to answer this.

 

[Newbie!]

Out of curiosity, why is the variable part of your mortgage at such a high interest rate? KBC's current variable rates are between 3.0% and 3.3%, depending on your loan-to-value (LTV) bracket.

Paul, thank you hugely for that wealth of information. Good question re the variable rate....embarrassingly it's because we never reviewed our mortgage. No excuses

 

[Paul F]

Paul, thank you hugely for that wealth of information. Good question re the variable rate....embarrassingly it's because we never reviewed our mortgage. No excuses

Just to clarify, I'm wondering why your variable rate hasn't fallen automatically as KBC have lowered it over the years. (It's a variable rate, after all.) Their highest variable rate now is 3.3%, even if you didn't get an updated property valuation to move into a better loan-to-value (LTV) bracket.

Can you check your last mortgage statement and confirm the interest rate that is currently being applied?

 

[The Oggster]

@Paul F Thanks for this. The Avant ones leaving us worse off, is that because there's no cash back?

I checked our fixed rate and we signed up in December 2018 not 2019. The first payment was actually January 2019.

We're considering AIB so we can have fee free banking on our joint account, as we currently do with KBC.

 

[Paul F]

The Avant ones leaving us worse off, is that because there's no cash back?

Essentially yes – if you switch (to any other lender, not just Avant), you have the upfront costs of switching (about €1,500). But you are only worse off over the next three years: over the next four years or more you would be better off on Avant's 4- or 5-year fixed rates (versus KBC).

But it is also very important to remember the following:

• If you decide to stay with KBC, 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 a different KBC offer now, you will 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).

 

[barneyrubble]

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.

All of the below savings estimates assume that you take out a mortgage with a term of about 24 years, and that the entire amount is fixed. (The new mortgage will not be a split mortgage and you will no longer have your tracker.)

• Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €13,420 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 (2.05% with no cashback) will save you about €12,760 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €11,440 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.25% with no cashback) will save you about €11,080 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.45% with no cashback) will save you about €10,900 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • You would no longer have your tracker in this scenario
  • 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
  • The same warnings as above regarding higher Permanent TSB rates in the future apply
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.35% with no cashback) will save you about €10,260 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 (2.5% with no cashback) will save you about €9,000 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 (2.55% with no cashback) will save you about €8,580 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.
  
  
• Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.95% with no cashback) will save you about €6,700 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).
  • You would no longer have your tracker in this scenario
  • The same warnings as above regarding higher Permanent TSB rates in the future apply

These savings estimates use for comparison the scenario of staying on the current arrangement with Ulster Bank and assume that its rates (both the tracker rate and the fixed rate) don't change between now and May 2026 (which is very 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 70% so that you are eligible for the listed rates. Your LTV estimate is 219.1k/320.0k = 68.5%. If you get a valuation of less than €313k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

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


You will need to research the attitudes of the various lenders to giving topup mortgages. Have a look at this thread and this thread, and contact the lenders themselves. AIB have a section of their website dedicated to topup mortgages.

Thank you Paul. Appreciate it.

The valuation is an estimate at the moment as it has increased a lot since we purchased in 2017. We carried a chunk of negative equity with us. So getting to a 70% LTV is big change!
Contacted UB on Friday and they are getting back to us with break fee and options for switching in house and a top up. It would be the least hassle option so will see what they come back with

Also have the issue that OH works for UB so pending redundancy and not sure if other banks would take that into account if looking to switch? He hasn't been given notice or anything yet and has 18mths left at least but everyone knows UB are leaving so would prob hinder us?

ETA UB rang this afternoon. Letter on break fee will be out this week. Can change to their 2.45 for 5 years straightaway if we want but will need to sign a declaration that we're aware we're giving up our mortgage! Need 80% LTV but they will do free valuation
Have until end of August to go for a top up with them if we wish. It would involve going through the full financials again. Also the OH working for UB might effect it. He would need a HR sign off that he's going nowhere for the time being.
She recommended changing rate now (or 2 another bank if we preferred) and looking at the top up in july/aug. Would have greater payment capacity then as well with mortgage payments lower!

 

[bob1577]

Hi Paul,

• Current lender - Ulster
• Outstanding mortgage balance (how much you still owe) - 167877
• Approximate value of your property - 450K
• The date you started your fixed-rate mortgage (month and year) - Oct 2021
• How many years you fixed for - 2 yrs (Ends on 31/12/2023)
• Your current mortgage interest rate - 2.2%
• Your current monthly repayment (excluding any overpayments) - 936.01, 18Yrs & 9 months remained.
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - A3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? - None

Got two letters from Ulster bank after asking for a breakage fee. One letter says the breakage costs are 0 and other letter gave me different options to choose from (2 yrs fixed 2.2% ending on 30/06/2024; 4 yrs green mortgage @ 2.25% etc etc with some breakage costs for each option). I am just confused between two letters which says 0 and other letter with different breakage costs ranging from 2.5K to 3K... which one is correct out of those two letters if i want to break out of Ulster?

first one is correct second letter same as me gives you options so you stay with them not move off to others.

 

[Martonius]

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 €5,620 over the next 3 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with no cashback) will save you about €4,380 over the next 3 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)
  • And for the same reason it is quite likely that there will be no break fee if you break out of this rate in, e.g., 18 months' time when you move
  • You will need a new BER cert but that is not very expensive compared to the savings. Consider using https://www.bercert.com/ to get quotes, but also search using Google and Facebook, etc.
  
  
• Switching immediately to AIB's 3- or 5-year fixed rate (2.35% with no cashback) will save you about €3,040 over the next 3 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 7-year fixed rate (2.25% with no cashback) will save you about €2,240 over the next 3 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 save you about €1,440 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 (2.4% with no cashback) will save you about €1,440 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
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (2.5% with no cashback) will save you about €920 over the next 3 years – but with the even-longer security of 20 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 2.5% fixed rate with no cashback) will save you about €920 over the next 3 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 24 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 2025 (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's 10-year and longer fixed rates 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).

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. See this thread for more details.

Hi Paul, that’s fantastic infornation - thank you so much.

 

[Paul F]

• 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

• Switching immediately to KBC's 5-year fixed rate (2.4% with €3,000 cashback) will save you about €1,240 over the next 4 years
  • 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 AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €480 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 €80 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 them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €1,100 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 leave you worse off by about €1,780 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 leave you worse off by about €1,780 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 leave you worse off by about €1,780 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 15 years)
  
  
• Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.8% with no cashback) will leave you worse off by about €2,140 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 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 (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).

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.

I have included rates for other (non-Ulster Bank) lenders because you will be able to get approval in principle (AIP) with most of them even if you are on probation – but you won't be able to complete the switch until your probation is over. Therefore, you should consider how long is left until the end of your probationary period and whether it might make sense for you to start the switch to another lender. (The switching process can take about two to three months.)

See this thread for information on the overpayments allowed (without penalty) by various lenders.

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

You don't have to wait for your break fee to be zero before switching (either to a different UB rate or to a different lender) – the above savings estimates factor in the cost of your current break fee (€175). As you say, if you wait you run the risk of rates increasing.

 

[Paul F]

• Current lender. BOI
• Outstanding mortgage balance €235k
• Approximate value of your property €420k
• The date you started your fixed-rate mortgage (month and year) Jan 2020
• How many years you fixed for. Was fixed for 2yrs. Expired in Jan 22 but letter came stating fixed rate 2.9% expires in Jul 22. Not sure how the extra six months transpired but it has.
• Your current mortgage interest rate 2.9%
• Your current monthly repayment €1202 incl 10% overpayment (excluding any overpayments €1080)
• Your property's BER (Building Energy Rating) C
• Are you due to get extra cashback from your current lender. If so, how much and when? Already got it. Reached 5yrs with BOI in Jan 22 so full 3% cashback is received.

Your break fee should be around €60 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Bank of Ireland (and please post it here when you receive it, including the date of the letter).

• Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €7,740 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 €7,660 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 5-year fixed rate (2.15% with no cashback) will save you about €5,980 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €5,340 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €5,080 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 save you about €3,740 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 save you about €3,740 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
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €280 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

These savings estimates use for comparison the scenario of switching to the 3.0% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 3.0% rate in August 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.

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 60% so that you are eligible for the listed rates. Your LTV estimate is 235.0k/420.0k = 56.0%. If you get a valuation of less than €392k, you will need to make a few more monthly mortgage payments and/or a small overpayment to get the LTV below 60%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

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

We also pay additional lump sums of 10k once per year off the mortgage. Break fees have been miniscule. Hope to keep this going where possible.

See this thread for information on the overpayments allowed (without penalty) by various lenders.

 

[LolaJay]

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.

Thanks so much for working this out. Have asked KBC for break fee and they said it will be sent in 7-10 days. Will update when received.

 

[Newbie!]

Just to clarify, I'm wondering why your variable rate hasn't fallen automatically as KBC have lowered it over the years. (It's a variable rate, after all.) Their highest variable rate now is 3.3%, even if you didn't get an updated property valuation to move into a better loan-to-value (LTV) bracket.

Can you check your last mortgage statement and confirm the interest rate that is currently being applied?

Hi Paul, apologies I understand what you're saying now. Yes, it is definitely 3.9%. I did query this with the bank last week and was told 'it's really variable as I have never actually seen rate changes applied'! What do I do with that information?

 

[holyGrail]

Current lender: Bank of Ireland
Outstanding mortgage balance: 80k
Approximate value of your property: 500k
The date you started your fixed-rate mortgage: December 2020
How many years you fixed for: 5
Your current mortgage interest rate: 3.0%
Your current monthly repayment: 1140.10
Your property's BER: A3
Are you due to get extra cashback from your current lender in the future: 2300 in December 2025

got a call back from BOI today so I was delighted to hear that I can break out of my fixed rate at no charge! So its a case of seeing what is the best option out there for us. Thanks