@Newbie! Is your mortgage a buy-to-let mortgage or a mortgage on the home that you live in?
@Newbie! Is your mortgage a buy-to-let mortgage or a mortgage on the home that you live in?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?
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
Hi all, would really appreciate any advice/help. Don't know what to do. Here are our detailsAt @Brendan Burgess's suggestion, I am creating this thread as a place where people can request guidance on whether they should switch their mortgage and, if so, which lender and rate they should switch to.
You are allowed to switch even if you are in the middle of a fixed rate with your current lender. The savings can be very significant, even if you have to pay fees.
The guidance will include an estimated calculation of the break fee ("early breakage charge" / "breakage cost") if you are currently on a fixed-rate mortgage, and the savings you would make. (If you are currently on a variable-rate mortgage, you do not have to pay a break fee when switching.) I am not aware of an online mortgage break fee calculator for Ireland, but this is arguably the next best thing.
To request guidance, please provide the following information:
If you are looking for information on something that is not directly related to break fees or which lender to switch to, first check the below links to see if your query has been answered before. Consider asking your question in one of those threads before asking it here.
- Current lender
- Outstanding mortgage balance (how much you still owe)
- Approximate value of your property
- The date you started your fixed-rate mortgage (month and year)
- How many years you fixed for
- Your current mortgage interest rate
- Your current monthly repayment (excluding any overpayments)
- Your property's BER (Building Energy Rating) – check it here or estimate it if necessary
- Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when?
Nothing in this thread should be considered financial advice.
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?
It's our home.@Newbie! Is your mortgage a buy-to-let mortgage or a mortgage on the home that you live in?
1) Where are you getting the information that it is 3.9%? Both written statement (from Jan 2022) and re-confirmed over the phone yesterday.Hi Newbie
1) Where are you getting the information that it is 3.9%?
2) Is it on a recent statement?
3) If it is 3.9% , you should write to KBC and ask them to issue you with a document outlining the changes in the mortgage rate on the account since you took out your mortgage
4) Do not rely on what someone tells you on the phone.
5) Why are you paying a high variable rate - why have you not fixed?
Another request from family member if you could advise on best option it would be greatly appreciated.
@MidasTouch This interest rate is not correct. Could you go back to your family member and get them to verify all of their mortgage details (and update your post accordingly)?Your current mortgage interest rate: 1.9%
@MidasTouch This interest rate is not correct. Could you go back to your family member and get them to verify all of their mortgage details (and update your post accordingly)?
Apologies, you are right. I've updated the rate to be correct, it should have been 1.95% and not 1.9%. Thanks for spotting!@MidasTouch This interest rate is not correct. Could you go back to your family member and get them to verify all of their mortgage details (and update your post accordingly)?
Thanks Paul.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.
See this thread for information on the overpayments allowed (without penalty) by various lenders.
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).
- Current lender - Ulster Bank
- Outstanding mortgage balance (how much you still owe) - €116,000
- Approximate value of your property - €275,000
- The date you started your fixed-rate mortgage (month and year) - Drew down mortgage August 2015 (25 year mortgage)
- How many years you fixed for - Initially fixed for 3 years then fixed again in August 2018 until 31/03/2023
- Your current mortgage interest rate - 2.6%
- Your current monthly repayment (excluding any overpayments) - €690
- Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - Not available but 35 year old house so not good I think
- 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
Many thanks, lots of food for thought. You are a great support to those of us who struggle with all the options. We will certainly update you on our reply from Ulster Bank re break feeYour 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 KBC's 5-year fixed rate (2.4% with €3,000 cashback) will save you about €1,560 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 €780 over the next 4 years
- Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €460 over the next 4 years
- Switching immediately to Ulster Bank's 5-year fixed rate (2.35% with no cashback) will save you about €240 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
- For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
- So if you switch to this Ulster Bank offer now, you will probably not be eligible to switch to one of Permanent TSB's low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
- Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will leave you worse off by about €400 over the next 4 years
- Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €820 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 €1,460 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 €1,460 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 €1,700 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).
- The same warnings as above regarding higher Permanent TSB rates in the future apply
- Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €1,900 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 17 years)
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 April 2023 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.
It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by 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).
Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with ICS. Note: it is possible that your break fee will be higher than zero because ICS Mortgages are a non-bank lender. I would be grateful if you could post your break fee quote here when you receive it, including the date of the letter.
- Current lender: ICS
- Outstanding mortgage balance (how much you still owe): €456,000
- Approximate value of your property: €510,000
- The date you started your fixed-rate mortgage (month and year): February 2022
- How many years you fixed for: 3 years
- Your current mortgage interest rate: 2.35%
- Your current monthly repayment (excluding any overpayments): €1,691
- Your property's BER (Building Energy Rating) – G
- 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
@MidasTouchCurrent lender: PTSB
Outstanding mortgage balance (how much you still owe) €170949.00
Approximate value of your property €360,000
The date you started your fixed-rate mortgage (month and year) November 2018
How many years you fixed for: 5 Years
Your current mortgage interest rate: 3%
Your current monthly repayment (excluding any overpayments) €779.00
Your property's BER (Building Energy Rating) 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
@MidasTouch Here are the savings estimates for your family member's situation.Current lender: Avant
Outstanding mortgage balance (how much you still owe) €175,372.00
Approximate value of your property €380,000
The date you started your fixed-rate mortgage (month and year) October 2021
How many years you fixed for: 3 Years
Your current mortgage interest rate: 1.95%
Your current monthly repayment (excluding any overpayments) €805.00
Your property's BER: 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
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