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

[Niall56]

Paul, thanks so much for all the advice offered in this thread. It's very impressive. You've some patience!

Here are my own details:

Current lender: Ulster Bank

Outstanding mortgage balance: €295k

Approximate value of your property: €605k

The date you started your fixed-rate mortgage: Sept 2018

How many years you fixed for: 4

Your current mortgage interest rate: 2.6%

Your current monthly repayment: €1,587

Your property's BER: C2

Cashback?: No

I'd be grateful for any insights.

Just to check if we can avoid the hassle of getting a solicitor, I'm enquiring about a fixed 2.2% with Ulster if available before the mortgage transfers over. Obviously Avant at 1.95% is tempting but it includes the hassle and expense of switching. As we're moving to PTSB, I wondered if the 2.05% fixed rate might be available.

Thanks

Niall

 

[Paul F]

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.

Your break fee should be zero 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 KBC's 5-year fixed rate (2.4% with €3,000 cashback) will save you about €2,280 over the next 4 years
  • Note that if you decide to do this, your mortgage will soon move back 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 3-year 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 must apply by 15 July 2022 if you wish to switch to KBC. You would also have to open a current account with them.
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €1,100 over the next 4 years
  
  
• Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €860 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €140 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 €220 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 €760 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 €760 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 Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€1,400) cashback) will leave you worse off by about €50 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% (€1,400) cashback) will leave you worse off by about €1,130 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 August 2022 – it could be higher (or lower). You would get the Bank of Ireland €1,400 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.

The savings estimates also assume that you consider €970 to be your normal monthly payment to Bank of Ireland. This means that your mortgage (whether with Bank of Ireland or with one of the above lenders) will be paid off in about 11 years.

If you decide to switch to another lender, the process will take a few months. You should probably make sure that you stay with Bank of Ireland long enough to get the €1,400 cashback from them. You should find out from them exactly what date this is, and whether you can switch after that date but before they actually pay you the cashback (if those two dates are not the same).

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.

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?

The bank does not "know" that your house value has increased. It was up to you to get a new valuation. And even if you did, you would either have had to break out of your fixed rate and possibly pay a break fee to switch to another rate, or wait until your fixed rate ended before switching to another rate. Anyway, all of that is largely irrelevant with Bank of Ireland because their rates are the same regardless of your loan-to-value bracket (except in a handful of cases).

 

[Paul F]

• 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

Your break fee should be around €40 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 €4,520 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €3,660 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €3,360 over the next 4 years
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €2,780 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 €1,920 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 €1,920 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 €90 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 €1,850 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 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.

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 150.0k/260.0k = 57.7%. If you get a valuation of less than €250k, 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.

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

 

[Paul F]

Current lender: Ulster Bank

Outstanding mortgage balance: €295k

Approximate value of your property: €605k

The date you started your fixed-rate mortgage: Sept 2018

How many years you fixed for: 4

Your current mortgage interest rate: 2.6%

Your current monthly repayment: €1,587

Your property's BER: C2

Cashback?: No

Your break fee should be around €360 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 €5,900 initial cashback and 2% monthly cashback) will save you about €2,100 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 €1,560 over the next 4 years
  
  
• Switching immediately to AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €1,400 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €300 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 Haven's 5-year fixed rate (2.55% with €5,000 cashback) will leave you worse off by about €20 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 €640 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 €1,140 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €1,740 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 €3,400 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 €3,400 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €4,500 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 20 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 €6,360 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 January 2023 – it could be higher (or lower). The estimates also account for any fees (break fee, solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

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

Just to check if we can avoid the hassle of getting a solicitor, I'm enquiring about a fixed 2.2% with Ulster if available before the mortgage transfers over. Obviously Avant at 1.95% is tempting but it includes the hassle and expense of switching. As we're moving to PTSB, I wondered if the 2.05% fixed rate might be available.

Switching to any lender, including PTSB, requires a solicitor. The only way to avoid a solicitor is to stay with Ulster Bank. But all of the above savings estimates for switching away from Ulster Bank factor in the cost of a solicitor (assumed to be €1,300 including VAT and outlays).

PTSB's 2.55% rate is better value than their 2.05% rate in your case because the 2.55% rate comes with 2% cashback upfront. But even though the savings from switching to PTSB are bigger than those from switching to Avant or AIB, that is only true over the next 4 or 5 years. After that, you will very likely be put on a high PTSB rate and will probably want to switch away from them.

 

[Oriel27]

@Oriel27 How long have you had a mortgage (of any type) with Haven. Just 4 months or longer?

hi Paul, the self build mortgage began in summer 2018. i was then paying the full mortgage from september 2020 (after all draw downs were completed). So i noticed this year (January) i could avail of the 2.15 percent green mortgage (A2 house). so i got that. Then it changed to 2% the following week, so i phoned them and they gave me the 2%.
i initially paid 1300 euros to get out of the 3.5% there this January.

 

[Newbie!]

Because your BER is C1, you are not eligible for "green" mortgages.

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

All of the below savings estimates assume that you take out a mortgage with a term of 14 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 5-year fixed rate (2.55% with €5,199 initial cashback and 2% monthly cashback) will save you about €6,480 over the next 4 years
  • The monthly repayment would be €1,842
  • 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 €5,320 over the next 4 years
  • The monthly repayment would be €1,770
  
  
• Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €5,040 over the next 4 years
  • The monthly repayment would be €1,800
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €4,800 over the next 4 years
  • The monthly repayment would be €1,842
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,860 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • The monthly repayment would be €1,854
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €3,480 over the next 4 years
  • The monthly repayment would be €1,794
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €2,540 over the next 4 years – but with the even-longer security of 7 years on a fixed rate
  • The monthly repayment would be €1,806
  
  
• Switching immediately (the entire mortgage balance, both the tracker and the 3.9% variable part) to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €2,500 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • The monthly repayment would be €1,824
  • You would no longer have your tracker in this scenario
  • Note that if you decide to do this, your mortgage will soon move onto Bank of Ireland's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Bank of Ireland customer, the best rate you would be able to switch to today is 3%
  • So if you switch to this KBC offer now, you will probably not be eligible to switch to one of Bank of Ireland's low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will save you about €1,160 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,824
  
  
• Switching immediately to Finance Ireland's 10-year fixed rate (2.4% with no cashback) will save you about €1,160 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  • The monthly repayment would be €1,824
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.4% fixed rate with no cashback) will save you about €1,160 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (14 years)
  • The monthly repayment would be €1,824

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 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.

Hi Paul, after much thought we think are going to go for Avant's one mortgage and at least have security of knowing our repayments will remain the same for the next 13 years.

Our neighbours recently moved to Avant and claimed they did not need a solicitor? Could that be right? thanks.

 

[Paul F]

Our neighbours recently moved to Avant and claimed they did not need a solicitor? Could that be right? thanks.

@Newbie! I don't see how that is possible, unless they simply switched from one Avant rate to another. Are you sure they have completed the switch to Avant and are not still in the middle of the process? Please ask them for more info if you can.

 

[RightorLeft]

Hi Paul, long time reader, first time poster... thank you for all the advice. Here's my own details:

• Current lender: Bank of Ireland
• Outstanding mortgage balance (how much you still owe): 447,985
• Approximate value of your property: 545,000
• The date you started your fixed-rate mortgage (month and year): October 2018
• How many years you fixed for: 5 Years
• Your current mortgage interest rate: 3%
• Your current monthly repayment (excluding any overpayments): 2,068.89
• 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? 1% after 5 Years, roughly 5K next October.

I have asked for a rate quote from BOI and they're offering me the 5 years fixed at 3% and I would look to refix for 5+ years again.

Thank you!

 

[sabinalee]

If you decide to switch to another lender, the process will take a few months. You should probably make sure that you stay with Bank of Ireland long enough to get the €1,400 cashback from them. You should find out from them exactly what date this is, and whether you can switch after that date but before they actually pay you the cashback (if those two dates are not the same

Paul, this 1400€ should be paid to my account anyway for being with them 5 years? No matter if I stay with them or not. Am I right?
My new term with BOI starts from 10th of August 2022.

Lets say I decided to stay with BOI fixed for another 3 or 5 years.
But in the same time I could afford to pay 1100€ a month...
(Apologies, I'm completely blind with this, so any suggestions are more than welcome).
Is there any good way I could pay more to repay quicker? Would BOI agreed for new monthly repayments?
I'm not sure if variable could be an option here with upcoming crisis...
Maybe a lump sum once per term would be better option?


Paul, thank you for your dedication and incredibly helpful information.

Kind regards
Sab

 

[Paul F]

• 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

@Oriel27

• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €3,200 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • The monthly repayment would be €797
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €4,240 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  • The monthly repayment would be €810
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €4,240 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
  • The monthly repayment would be €810
  • 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 leave you worse off by about €4,620 over the next 4 years – but with the even-longer security of 7 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • The monthly repayment would be €833
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (2.5% with no cashback) will leave you worse off by about €4,920 over the next 4 years – but with the even-longer security of 20 years on a fixed rate
  • The monthly repayment would be €819
  • 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 €4,920 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 24 years)
  • The monthly repayment would be €819
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €6,020 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).
  • The monthly repayment would be €851

These savings estimates use for comparison the scenario of switching to the 2.0% rate with Haven when the current fixed rate ends. And that's assuming that Haven are even offering a 2.0% rate in February 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).

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 180.0k/300.0k = 60.0%. If you get a valuation of less than €300k, 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.

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

I presume you have seen the Haven 7-year fixed rate (2.65%)?

A note about increased monthly repayments: your monthly repayment would increase by €76 if you moved to the Haven's 10-year fixed rate (2.85%). You may think that the extra cost over 4 years is 48 x €76 = €3,648, but the above estimate shows that the extra cost is actually €6,020. That (€6,020) is the amount of extra interest you would pay over 4 years. The apparent discrepancy can be accounted for when you realise that your outstanding balance will be lower in four years' time on the 2.0% rate than on the 2.8% rate. Here is a mortgage calculator for your current rate and here is one for the 2.85% rate.

 

[Oriel27]

@Oriel27

• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €3,200 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • The monthly repayment would be €797
  
  
• Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €4,240 over the next 4 years – but with the even-longer security of 10 years on a fixed rate
  • The monthly repayment would be €810
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.4% with no cashback) will leave you worse off by about €4,240 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
  • The monthly repayment would be €810
  • 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 leave you worse off by about €4,620 over the next 4 years – but with the even-longer security of 7 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  • The monthly repayment would be €833
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (2.5% with no cashback) will leave you worse off by about €4,920 over the next 4 years – but with the even-longer security of 20 years on a fixed rate
  • The monthly repayment would be €819
  • 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 €4,920 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 24 years)
  • The monthly repayment would be €819
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €6,020 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).
  • The monthly repayment would be €851

These savings estimates use for comparison the scenario of switching to the 2.0% rate with Haven when the current fixed rate ends. And that's assuming that Haven are even offering a 2.0% rate in February 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).

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 180.0k/300.0k = 60.0%. If you get a valuation of less than €300k, 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.

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

I presume you have seen the Haven 7-year fixed rate (2.65%)?

A note about increased monthly repayments: your monthly repayment would increase by €76 if you moved to the Haven's 10-year fixed rate (2.85%). You may think that the extra cost over 4 years is 48 x €76 = €3,648, but the above estimate shows that the extra cost is actually €6,020. That (€6,020) is the amount of extra interest you would pay over 4 years. The apparent discrepancy can be accounted for when you realise that your outstanding balance will be lower in four years' time on the 2.0% rate than on the 2.8% rate. Here is a mortgage calculator for your current rate and here is one for the 2.85% rate.

many thanks Paul for taking the time to compute this.
so if switching to anyone else other than Haven, its actually going to cost money - solicitor, valuation etc ? who pays for that?
how long does it take to switch?
it might be just easier to stay with Haven at 10 year fixed.

 

[Oriel27]

many thanks Paul for taking the time to compute this.
so if switching to anyone else other than Haven, its actually going to cost money - solicitor, valuation etc ? who pays for that?
how long does it take to switch?
it might be just easier to stay with Haven at 10 year fixed.

Paul and to anyone else out there.

I contacted Finance Ireland enquiring about switching.

Both myself and the wife have sterling accounts (but live in RoI), we cants switch to anyone, so we have to stay with Haven.
i went thru hell back in 2018 trying to get a mortgage in the south, although from the south, having northern jobs went against us. With the up messup of Brexit and the border issues - no one would give us a mortgage only Haven. (who ever said the border doesnt exist...... it certainly does)

anyway i didnt realise, its like apply for another mortgage again,- bank statements, employer letters etc.
so, we cant switch because we work in the north.
thats it.
thanks anyway Paul for the help and education.
S

 

[Paul F]

so if switching to anyone else other than Haven, its actually going to cost money - solicitor, valuation etc ? who pays for that?

You do – but the savings more than cover these costs in most cases (although not in your case).

how long does it take to switch?

About two to three months.

anyway i didnt realise, its like apply for another mortgage again,- bank statements, employer letters etc.
so, we cant switch because we work in the north.
thats it.

I understand. It seems that in your case you are looking for the peace of mind that a longer-term fixed rate will give you, even though it means a higher interest rate (at least over the next three and a half years), and Haven is your only option.

 

[Niall56]

Your break fee should be around €360 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 €5,900 initial cashback and 2% monthly cashback) will save you about €2,100 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. immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €3,400 over the next 4 years – but with the ch 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).

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


Switching to any lender, including PTSB, requires a solicitor. The only way to avoid a solicitor is to stay with Ulster Bank. But all of the above savings estimates for switching away from Ulster Bank factor in the cost of a solicitor (assumed to be €1,300 including VAT and outlays).

PTSB's 2.55% rate is better value than their 2.05% rate in your case because the 2.55% rate comes with 2% cashback upfront. But even though the savings from switching to PTSB are bigger than those from switching to Avant or AIB, that is only true over the next 4 or 5 years. After that, you will very likely be put on a high PTSB rate and will probably want to switch away from them.

Your break fee should be around €360 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 €5,900 initial cashback and 2% monthly cashback) will save you about €2,100 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 €1,560 over the next 4 years
  
  
• Switching immediately to AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €1,400 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €300 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 Haven's 5-year fixed rate (2.55% with €5,000 cashback) will leave you worse off by about €20 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 €640 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 €1,140 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will leave you worse off by about €1,740 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 €3,400 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 €3,400 over the next 4 years – but with the even-longer security of 10 or 15 years on a fixed rate
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €4,500 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 20 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 €6,360 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 January 2023 – it could be higher (or lower). The estimates also account for any fees (break fee, solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

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


Switching to any lender, including PTSB, requires a solicitor. The only way to avoid a solicitor is to stay with Ulster Bank. But all of the above savings estimates for switching away from Ulster Bank factor in the cost of a solicitor (assumed to be €1,300 including VAT and outlays).

PTSB's 2.55% rate is better value than their 2.05% rate in your case because the 2.55% rate comes with 2% cashback upfront. But even though the savings from switching to PTSB are bigger than those from switching to Avant or AIB, that is only true over the next 4 or 5 years. After that, you will very likely be put on a high PTSB rate and will probably want to switch away from them.

Many thanks for the response. I'll enquire about the Ulster Bank 2.2% shortly, notwithstanding possible PTSB issues down the line. I thought the savings moving from 2.6% to 2.2% would be more significant though.

 

[Paul F]

Many thanks for the response. I'll enquire about the Ulster Bank 2.2% shortly, notwithstanding possible PTSB issues down the line. I thought the savings moving from 2.6% to 2.2% would be more significant though.

They are very significant but notice what I said:

These savings estimates use for comparison the scenario of switching to the 2.2% rate with Ulster Bank when the current fixed rate ends [at the end of December of this year]. 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 January 2023

If you instead use a hypothetical baseline of staying on a 2.6% rate for the next 4 years, the savings from the 2.2% rate are approximately €295,000 * (2.6 - 2.2) / 100 * 4 = €4,720 over 4 years.

 

[Paul F]

• Current lender: Bank of Ireland
• Outstanding mortgage balance (how much you still owe): 447,985
• Approximate value of your property: 545,000
• The date you started your fixed-rate mortgage (month and year): October 2018
• How many years you fixed for: 5 Years
• Your current mortgage interest rate: 3%
• Your current monthly repayment (excluding any overpayments): 2,068.89
• 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? 1% after 5 Years, roughly 5K next October.

@RightorLeft 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 Permanent TSB's 5-year fixed rate (2.55% with €8,959 initial cashback and 2% monthly cashback) will save you about €11,320 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 €8,780 over the next 4 years
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.15% with no cashback) will save you about €7,620 over the next 4 years
  
  
• Switching immediately to EBS's 5-year fixed rate (2.75% with €8,959 cashback) will save you about €6,280 over the next 4 years
  
  
• Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €5,760 over the next 4 years
  
  
• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €4,500 over the next 4 years
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €4,040 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.45% with no cashback) will save you about €2,460 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 (2.6% with no cashback) will leave you worse off by about €140 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 (2.65% with no cashback) will leave you worse off by about €1,000 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.
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€5,000) cashback) will leave you worse off by about €540 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% (€5,000) cashback) will leave you worse off by about €5,790 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 €5,000 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 80% so that you are eligible for some of the listed rates. Your LTV is currently 448k/545k = 82.2%. A higher property valuation (€560k) and/or a few more monthly mortgage payments and/or a lump sum overpayment will get you below 80%. (Even if you don't get your LTV below 80%, you are eligible for the EBS, Haven and Bank of Ireland rates listed above.)

If you want savings estimates for longer-term fixed rates, or if you don't think you can get your LTV below 80%, let me know.

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

 

[Dathuil]

Hey Paul, First time poster so thanks for all your help with this! Here are my details

• Current lender - Ulster Bank
• Outstanding mortgage balance - €224,739.03
• Approximate value of your property - €344,918
• The date you started your fixed-rate mortgage - October 2021
• How many years you fixed for - 2 years (rate ends Dec 2023)
• Your current mortgage interest rate - 2.25%
• Your current monthly repayment (excluding any overpayments) - €927.62
• Your property's BER (Building Energy Rating) – D3 - C3 the cert has expired
• Are you due to get extra cashback from your current lender in the future - no

I'd be grateful for any suggestions as the whole switching thing has me anxious with options as is

 

[DublinHead54]

Hi Paul,

Now that there is certainty ECB will raise rates starting July, should I break my fix term and refix with BOI (can't switch) for the long term. I am planning to fix for 5-10 years next Feb anyway and just wondering if it might be better to do it at rates quoted now before they raise.

• Current lender - BOI
• Outstanding mortgage balance - 608K
• Approximate value of your property - 800k
• The date you started your fixed-rate mortgage - Feb 22
• How many years you fixed for - 1 year ending feb 23
• Your current mortgage interest rate - 2.6%
• Your current monthly repayment (excluding any overpayments) - 2.5k
• Are you due to get extra cashback from your current lender in the future - Yes

 

[mimes]

Hi All,

Great thread. My details below. Any feedback is appreciated. I am interested in knowing if I have a break fee also.

Current lender: BOI

Outstanding mortgage balance: €212k

Approximate value of your property: €675k

The date you started your fixed-rate mortgage: Dec 2018

How many years you fixed for: 5

Your current mortgage interest rate: 3%

Your current monthly repayment: €1462

Your property's BER: B1

Cashback?: Yes - Not much ~2k

 

[Paul F]

• Are you due to get extra cashback from your current lender in the future - Yes

@Dublinbay12 How much and when?