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

Advicepls said:
  • Current lender - Ulster Bank
  • Outstanding mortgage balance (how much you still owe) - 458k
  • Approximate value of your property - 750k - UB account says we have 73% equity but thats not taking into account house price rise and we totally upgraded the house
  • The date you started your fixed-rate mortgage (month and year) December 2018
  • How many years you fixed for 5 years
  • Your current mortgage interest rate 2.6%
  • Your current monthly repayment (excluding any overpayments) 2163
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary C ish
  • 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? Nope
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@Advicepls 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 Permanent TSB's 5-year fixed rate (2.55% with €9,160 initial cashback and 2% monthly cashback) will save you about €6,700 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 €6,180 over the next 4 years

  • Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €3,880 over the next 4 years

  • Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €3,320 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €2,720 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €980 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €760 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will leave you worse off by about €980 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 €1,640 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 €1,640 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- 10-year fixed rate (2.8% with no cashback) will leave you worse off by about €7,160 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 2.2% 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 2.2% rate in April 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 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 you get your loan-to-value ratio (LTV) below 60% so that you are eligible for the listed rates. Your LTV is currently 458k/750k = 61.1%. A slightly higher property valuation (€764k) and/or a few more monthly mortgage payments and/or a small overpayment will get you 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.

Bear in mind that interest rates could rise between now and the time that you complete any switch.
 
harrybodynamo said:
  • Current lender  AIB
  • Outstanding mortgage balance (how much you still owe) 185,000
  • Approximate value of your property 320,000
  • The date you started your fixed-rate mortgage (month and year) March 2021
  • How many years you fixed for 5 years
  • Your current mortgage interest rate 2.15%
  • Your current monthly repayment (excluding any overpayments) €765
  • 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?  No
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@harrybodynamo
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €1,600 over the next 4 years

  • Breaking and re-fixing immediately on AIB's 5-year green fixed rate (2.15% with no cashback) will save you and cost you nothing 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 leave you worse off by about €80 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 €1,500 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 €2,200 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 €3,280 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- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €3,280 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 Finance Ireland's 20-year fixed rate (2.5% with no cashback) will leave you worse off by about €3,980 over the next 4 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 leave you worse off by about €3,980 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 26 years)

  • Switching immediately to Finance Ireland's 25-year fixed rate (2.65% with no cashback) will leave you worse off by about €5,060 over the next 4 years – but with the even-longer security of 25 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 2.15% rate with AIB when the current fixed rate ends. And that's assuming that AIB are even offering a 2.15% rate in March 2026 – 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).

Bear in mind that interest rates could rise between now and the time that you complete any switch.
 
kelbell said:
  • Current lender  BOI
  • Outstanding mortgage balance (how much you still owe) 253,000
  • Approximate value of your property 420,000
  • The date you started your fixed-rate mortgage (month and year) Oct 2018
  • How many years you fixed for 5 years
  • Your current mortgage interest rate 3%
  • Your current monthly repayment (excluding any overpayments) €1,199
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary  C2
  • Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? Yes, 1% after 5yrs in Oct 2023
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@kelbell Your break fee should be around €540 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 €5,380 over the next 4 years

  • Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €5,020 over the next 4 years

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €4,620 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,640 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €3,460 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €2,500 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 €1,040 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 €1,040 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
    • This product has a benefit in relation to moving home in the future that is explained below

  • Breaking immediately and re-fixing on Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (~€2,750) cashback) will leave you worse off by about €720 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (~€2,750) cashback) will leave you worse off by about €3,640 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 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 October 2023 – it could be higher (or lower). You would get the Bank of Ireland €2,750 (approx) future cashback in such a scenario, and the savings estimates account for this. 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 you get your loan-to-value ratio (LTV) below 60% so that you are eligible for the listed rates. Your LTV is currently 253k/420k = 60.2%. A slightly higher property valuation (€422k) and/or a few more monthly mortgage payments and/or a small overpayment will get you below 60%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

Note that you must take out a mortgage of at least €250k to be eligible for AIB's 2.2% rate or Haven's €5,000 cashback.

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

Bear in mind that interest rates could rise between now and the time that you complete any switch.

kelbell said:
Is switching a mortgage a similar process to getting the mortgage in the first place?
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Yes, any new lender will look for basically the same documents and information as you provided when you first took out your mortgage. Note that Avant have a reputation for being quite picky/strict/pernickety when it comes to documentation (and income stability). Note also that breaking and re-fixing with your current lender does not require you to provide any documentation at all (except maybe an updated property valuation), and your employment situation is not a barrier to breaking and re-fixing with your current lender.

kelbell said:
OH is self employed and the business was hit by Covid and availed of supports available, but wages back to normal now, would this go against us now?
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The only way to know is to talk to the lender or a broker and see what they say. Finance Ireland might be more lenient in this regard.
 
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Paul F said:
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.
  • Switching immediately to Permanent TSB's 3-year fixed rate (2.8% with €9,118 initial cashback and 2% monthly cashback) will save you about €4,320 over the next 2 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 EBS's 5-year fixed rate (2.75% with €9,118 cashback) will save you about €4,060 over the next 2 years

  • Switching immediately to Permanent TSB's 5-year fixed rate (2.85% with €9,118 initial cashback and 2% monthly cashback) will save you about €3,880 over the next 2 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 €3,540 over the next 2 years

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with €9,118 initial cashback and 2% monthly cashback) will save you about €2,540 over the next 2 years – but with the longer security of 7 years on a fixed rate
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €1,740 over the next 2 years

  • Switching immediately to AIB's 4-year fixed rate (2.3% with €2,000 cashback) will save you about €1,000 over the next 2 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €840 over the next 2 years – but with the even-longer security of 7 years on a fixed rate

  • Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will leave you worse off by about €960 over the next 2 years – but with the even-longer security of 10 years on a fixed rate

  • Switching immediately to AIB's 5-year fixed rate (2.55% with €2,000 cashback) will leave you worse off by about €1,260 over the next 2 years

You are not currently eligible to switch to Permanent TSB or EBS (because you have been with your current lender for less than 12 months). However, you may be able to start the switching process with them now – but only draw down (complete the switch) in February 2023. Contact them to find out.

You will be eligible to switch to AIB in August (but there may be nothing stopping you from starting the switching process now). It is not known how long you must be with your current lender before you are eligible to switch to Haven. Contact them to find out (and please post their answer here if you do).

Bear in mind that interest rates could rise between now and the time that you complete any switch, especially if you switch to PTSB or EBS (since you will have to wait 8 months).

You are not eligible to switch to Avant or Finance Ireland because your loan-to-value (LTV) ratio is above 80%. It is currently about 456.0k/510.0k = 89.4%.

These savings estimates use for comparison the scenario of doing nothing. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

Even though the savings with Permanent TSB and EBS over the next couple of years are bigger than those with AIB and Haven, notice how Permanent TSB's and EBS's interest rates are much higher. Therefore, the better value over the medium to long term is likely to be with AIB or Haven.
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Thanks Paul for this information, greatly appreciated.

I asked ICS what the break fee would be and I am told it is currently zero. However, that information is only valid for 5 days and ICS said I would have to check with them beyond that.

I queried with a broker if there is a minimum time requirement with my current lender in order to switch to Finance Ireland and I was told there is no minimum requirement with Finance Ireland.

With the recent sales on the road I live on, it would likely bring the value of my house up and change the loan to value to less than 80%.
 
bennybob said:
I asked ICS what the break fee would be and I am told it is currently zero. However, that information is only valid for 5 days and ICS said I would have to check with them beyond that.
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@bennybob It is very unlikely that your break fee will go above zero for the foreseeable future.

bennybob said:
I queried with a broker if there is a minimum time requirement with my current lender in order to switch to Finance Ireland and I was told there is no minimum requirement with Finance Ireland.
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That is very useful information – thanks.

bennybob said:
With the recent sales on the road I live on, it would likely bring the value of my house up and change the loan to value to less than 80%.
Click to expand...
  • Switching immediately to Haven's 3-year fixed rate (2.35% with €5,000 cashback) will save you about €3,540 over the next 2 years

  • Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €1,880 over the next 2 years

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €1,740 over the next 2 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €840 over the next 2 years – but with the even-longer security of 7 years on a fixed rate

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.65% with no cashback) will leave you worse off by about €4,200 over the next 2 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 2.65%) will automatically fall as time passes and you move into lower loan-to-value (LTV) brackets. See the section "How we decide rate reductions" on this page.

These savings estimates use for comparison the scenario of doing nothing. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

I have not shown any rates/estimates for Avant, Permanent TSB or EBS because you are not currently eligible to switch to them (because you have been with your current lender for less than 12 months). It is not known how long you must be with your current lender before you are eligible to switch to Haven. Contact them to find out (and please post their answer here if you do).

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 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 assume that your property is worth at least €570k – i.e., your loan-to-value ratio (LTV) is below 80% – so that you are eligible for the listed rates. If you get a valuation of less than €570k, you will need to make a few more monthly mortgage payments and/or an overpayment to get the LTV below 80%. But if you think you will be able to do that, you can start the switch immediately.

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

Bear in mind that interest rates could rise between now and the time that you complete any switch.
 
Hi Paul F,

Thanks in advance for the help:
  • Current lender: EBS
  • Outstanding mortgage balance: 407,360.53
  • Approximate value of your property: 550,000
  • The date you started your fixed-rate mortgage (month and year): Sept 2020
  • How many years you fixed for: 5 years
  • Your current mortgage interest rate: 2.9
  • Your current monthly repayment: 1,580
  • Your property's BER (Building Energy Rating) – D1
  • Are you due to get extra cashback from your current lender in the future: 1% after 5 years - 4,185e due 6 weeks after Sept 2025
 
I have just started the ball rolling on a switch to AIB green mortgage (<50% Ltv) based on advice from here. With current talk of impending interest rate rises, am I better to abandon the switch and fix again with my current lender (BOI). Current rate is 3.35% and fixed rate ends in July
 
Paul F said:
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.


See this thread for information on the overpayments allowed by various lenders.
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Thank you for the comprehensive answer. In considering options I was wondering what you would think of the option of re-fixing for 5 years with UB as an alternative option? In the absence of significant savings to be made by switching now, my hope would be that things would have settled back by then. Thanks in advance.
 
redwellies said:
I have just started the ball rolling on a switch to AIB green mortgage (<50% Ltv) based on advice from here. With current talk of impending interest rate rises, am I better to abandon the switch and fix again with my current lender (BOI). Current rate is 3.35% and fixed rate ends in July
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@redwellies Is your current rate 3.25% (as you said previously) or 3.35%?
 
Paul F said:
@redwellies Is your current rate 3.25% (as you said previously) or 3.35%?
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It’s 3.35%. I must have made a mistake on my original post. I’m looking at the letter now from the bank about my term coming to an end and it’s definitely 3.35%. Our fixed rate expires on the 7th of July.
Balance remaining is about €179000
26 years left of the term. We’ve been overpaying by 10% for the past year or so on BofI fixed rate of 3.35%
 
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SecretSam said:
  • Current lender: EBS
  • Outstanding mortgage balance: 407,360.53
  • Approximate value of your property: 550,000
  • The date you started your fixed-rate mortgage (month and year): Sept 2020
  • How many years you fixed for: 5 years
  • Your current mortgage interest rate: 2.9
  • Your current monthly repayment: 1,580
  • Your property's BER (Building Energy Rating) – D1
  • Are you due to get extra cashback from your current lender in the future: 1% after 5 years - 4,185e due 6 weeks after Sept 2025
Click to expand...
Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with EBS (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 €8,147 initial cashback and 2% monthly cashback) will save you about €8,840 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 4-year fixed rate (2.2% with €2,000 cashback) will save you about €7,100 over the next 4 years

  • Switching immediately to Avant Money's 4-year fixed rate (2.15% with no cashback) will save you about €5,780 over the next 4 years
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,536

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €4,540 over the next 4 years

  • Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €3,120 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €2,940 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to EBS's 5-year fixed rate (2.75% and you would get the 1% (€4,185) cashback) will save you about €1,820 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Avant Money's 7-year fixed rate (2.45% with no cashback) will save you about €1,060 over the next 4 years – but with the even-longer security of 7 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,599

  • Switching immediately to Avant Money's 10-year fixed rate (2.6% with no cashback) will leave you worse off by about €1,320 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €1,631

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.65% with no cashback) will leave you worse off by about €2,100 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 2.65%) will automatically fall as time passes and you move into lower loan-to-value (LTV) brackets. See the section "How we decide rate reductions" on this page.

These savings estimates use for comparison the scenario of switching to the 2.75% rate with EBS when the current fixed rate ends. And that's assuming that EBS are even offering a 2.75% rate in September 2025 – it could be higher (or lower). You would get the EBS €4,185 future cashback in such a scenario, and the savings estimates account for this. 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 407.4k/550.0k = 74.1%. A higher property valuation (€582k) and/or a few more monthly mortgage payments and/or a lump-sum overpayment would get you into a lower LTV bracket (< 70%), and you would be eligible for lower rates from Avant and Finance Ireland. But that is probably not a good reason to delay the switch – i.e., you can start the switch immediately.

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

Bear in mind that interest rates could rise between now and the time that you complete any switch.
 
Parazard2 said:
Thank you for the comprehensive answer. In considering options I was wondering what you would think of the option of re-fixing for 5 years with UB as an alternative option? In the absence of significant savings to be made by switching now, my hope would be that things would have settled back by then. Thanks in advance.
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While it is true that by switching to another lender now you will not make significant savings over the next 4 or 5 years, bear in mind what I said about re-fixing for 5 years with Ulster Bank:
  • 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).
Click to expand...
In other words, if you re-fix with UB now, you will probably want to switch away from Permanent TSB (who will soon own your mortgage) in 5 years – because it seems reasonable to assume that as an existing customer of PTSB's you will only be eligible for their high interest rates. But you might not be able to switch in 5 years: you might have taken a pay cut or lost your job. Or interest rates might be higher in 5 years' time than they are now – relevant if you are contemplating fixing for a long period now.
 
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redwellies said:
I have just started the ball rolling on a switch to AIB green mortgage (<50% Ltv) based on advice from here. With current talk of impending interest rate rises, am I better to abandon the switch and fix again with my current lender (BOI). Current rate is 3.35% and fixed rate ends in July
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Your break fee should be around €140 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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €7,240 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 €6,580 over the next 4 years
    • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)

  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €5,560 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €4,200 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €3,520 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 €2,500 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 €2,500 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
    • This product has a benefit in relation to moving home in the future that is explained below

  • Switching immediately to Haven's 7-year fixed rate (2.65% with no cashback) will save you about €840 over the next 4 years

  • Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €260 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will leave you worse off by about €2,320 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 July 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.

The savings estimates also assume that you consider €948 to be your normal monthly payment to Bank of Ireland. This means that your mortgage (whether with BOI or with one of the above lenders) will be paid off in about 22 years.

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.

Bear in mind that interest rates could rise between now and the time that you complete any switch. But the AIB 5-year green rate would have to rise to about 3.1% before you complete the switch in order for it to not be worth your while to switch to them.
 
Hi Paul,

Might as well get the idea where I stand on from you.
What would be best to do in upcoming crisis.

Current lender: Bank of Ireland
Outstanding mortgage balance: 106.5k
Approximate value of your property: 195k
The date you started your fixed-rate mortgage: August 2017
How many years you fixed for: 3 and then 2
Your current mortgage interest rate: 2.9%
Your current monthly repayment: 970 approx. ( inc. Repaying extra 10% from August 2020).
Your property's BER: D2 house from 1950s
Are you due to get extra cashback from your current lender in the future: 1% in August/September 2022.

Thank you.
 
Hi. Thank you so much for any help. It'sreally appreciated
  • Current lender - BOI
  • Outstanding mortgage balance (how much you still owe) - 150000
  • Approximate value of your property- 260000
  • The date you started your fixed-rate mortgage (month and year) - July 2019
  • How many years you fixed for - 3
  • Your current mortgage interest rate - 2.8%
  • Your current monthly repayment (excluding any overpayments) - 634.36
  • 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
 
sabinalee said:
Sorry Paul, it would be 1400euro.
We borrowed 140K for mortgage. Paid for house 163.5K
Click to expand...
Paul, just received letter by post from BOI with choices of rates.
Wonder, why bank, if know that house value increased since we got it in 2017 still is keeping us on LTV >80%. Should we be not at around >=60? How can I fix it?

New rates if we keep 10% of overpay:
- variable 4.5% - 1.036.62 or 948.65 standard repayment
- 3 year fixed 3% - 959.55
- 1%2 year fixed 2.9% - 954.55
- 5 year fixed 3% - 959.55
- 10 year fixed 3.5% - 984.82
 
Hi,

  • Current lender: Haven
  • Outstanding mortgage balance (how much you still owe): €180k
  • Approximate value of your property: €300k
  • The date you started your fixed-rate mortgage (month and year): Feb 2022
  • How many years you fixed for: 4
  • Your current mortgage interest rate: 2%
  • Your current monthly repayment (excluding any overpayments): €775
  • 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
House was a self-build

im thinking of getting out of the fixed rate of 2% and going with Haven 2.85% - 10 year rate. i still have 25 years left on mortgage.

am i wise?

i was told i have no breakage fee at present.
 
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