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

@Kfox92 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. If it is higher than zero, please post it here when you receive it, including the date of the letter.
  • Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €3,780 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 3.0%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 4-year fixed rate (2.05% with no cashback) will save you about €3,360 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 €703

  • Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €2,480 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.25% with no cashback) will save you about €1,900 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 €722

  • Switching immediately to Avant Money's 7-year fixed rate (2.35% with no cashback) will save you about €1,160 over the next 4 years – but with the 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 €732
    • If Avant won't let you switch to them and you really want to fix for 7 years for some reason, you could consider Haven's 7-year fixed rate (2.65% with €2,000 cashback)

  • Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will save you about €60 over the next 4 years – but with the 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 €747
    • If Avant won't let you switch to them and you really want to fix for 10 years for some reason, you could consider Haven's 10-year fixed rate (2.85% with €2,000 cashback)

  • Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€2,000) cashback) will leave you worse off by about €140 over the next 4 years, but it will "reset the clock" on the fixed-rate period. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Avant Money's "One Mortgage" (a 2.65% fixed rate with no cashback) will leave you worse off by about €1,040 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
    • You would have to shorten your mortgage term to 30 years to be eligible for this rate
    • The monthly repayment would be €762

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€2,000) cashback) will leave you worse off by about €2,520 over the next 4 years – but with the 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).

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.05% with no cashback) will leave you worse off by about €4,000 over the next 4 years – but with the 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 3.05%) will fall to 2.9% in 7 years and 4 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

  • Switching immediately to Finance Ireland's 20-year fixed rate (3.15% with no cashback) will leave you worse off by about €4,740 over the next 4 years – but with the 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
    • And your interest rate (initially 3.15%) will fall to 3.0% in 7 years and 6 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

  • Switching immediately to Finance Ireland's 25-year fixed rate (3.3% with no cashback) will leave you worse off by about €5,860 over the next 4 years – but with the 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
    • And your interest rate (initially 3.3%) will fall to 3.15% in 7 years and 7 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

These savings estimates use for comparison the scenario of switching to the 2.9% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 2.9% rate in October 2025 – it could be higher (or lower). You would get the Bank of Ireland €2,000 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.

You should call Bank of Ireland and tell them that you are planning to switch to another lender. Ask them what interest rates they will offer you to break and re-fix with them. Please post a summary of their response here.

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 70% so that you are eligible for the Avant and Finance Ireland rates listed above. Your LTV is currently 189.0k/260.0k = 72.7%. A higher property valuation (€270k) and/or a few more monthly mortgage payments and/or a lump sum overpayment will get you below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately. (Note: you are already eligible, in LTV terms, for the above Permanent TSB, Haven and AIB rates – and Finance Ireland will automatically move you on to the <70% LTV rate (shown above) in a couple of years even if you switch to them with an LTV of 72%.)

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

Kfox92 said:
Is this a simple equation of willing to front up ~2k today to get ~2k greater equity in the home by Oct '25 and basically getting an extension of a fixed rate for around 9 months?
Click to expand...
More or less. But notice how Avant and AIB will save you nearly as much as PTSB over the next 4 years – and Avant's and AIB don't discriminate between new and existing customers. If you go to PTSB, they will not allow you to have their "new business only" rates in 4 years' time.
 
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@ciaramcs Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC. If it is higher than zero, 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 €6,040 initial cashback and 2% monthly cashback) will save you about €7,540 over the next 3 years
    • The monthly repayment would be €1,322
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Haven's 3-year fixed rate (2.35% with €5,000 cashback) will save you about €7,520 over the next 3 years
    • The monthly repayment would be €1,291

  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €6,000 over the next 3 years
    • The monthly repayment would be €1,232

  • Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €5,840 over the next 3 years
    • The monthly repayment would be €1,269

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €5,760 over the next 3 years
    • The monthly repayment would be €1,322

  • Switching immediately to KBC's 3-year fixed rate (2.25% with no cashback) will save you about €4,700 over the next 3 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The monthly repayment would be €1,276
    • 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 3.0%
    • 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 have a KBC current account to be eligible for this rate, and the deadline for applying a KBC current account (if you don't already have one) is 15 July 2022

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €4,240 over the next 3 years
    • The monthly repayment would be €1,261

  • Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €3,380 over the next 3 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The monthly repayment would be €1,299
    • The same warnings as above regarding higher Bank of Ireland rates in the future apply
    • You must have a KBC current account to be eligible for this rate, and the deadline for applying a KBC current account (if you don't already have one) is 15 July 2022

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €3,360 over the next 3 years – but with the longer security of 7 years on a fixed rate
    • The monthly repayment would be €1,276
    • If Avant won't let you switch to them and you really want to fix for 7 years for some reason, you could consider Haven's 7-year fixed rate (2.65% with €5,000 cashback). The monthly repayment would be €1,337.

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will save you about €2,060 over the next 3 years – but with the longer security of 10 years on a fixed rate
    • The monthly repayment would be €1,299
    • If Avant won't let you switch to them and you really want to fix for 10 years for some reason, you could consider Haven's 10-year fixed rate (2.85% with €5,000 cashback). The monthly repayment would be €1,368.

  • Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will save you about €1,180 over the next 3 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 26 years)
    • The monthly repayment would be €1,314

  • Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €580 over the next 3 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The monthly repayment would be €1,368
    • The same warnings as above regarding higher Bank of Ireland rates in the future apply
    • You must have a KBC current account to be eligible for this rate, and the deadline for applying a KBC current account (if you don't already have one) is 15 July 2022

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €2,360 over the next 3 years – but with the longer security of 10 or 15 years on a fixed rate
    • The monthly repayment would be €1,376
    • 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 (3.0% with no cashback) will leave you worse off by about €3,240 over the next 3 years – but with the longer security of 20 years on a fixed rate
    • The monthly repayment would be €1,392
    • This product has a benefit in relation to moving home in the future that is explained below

  • Switching immediately to Finance Ireland's 25-year fixed rate (3.15% with no cashback) will leave you worse off by about €4,580 over the next 3 years – but with the longer security of 25 years on a fixed rate
    • The monthly repayment would be €1,416
    • 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 2.9% rate with Bank of Ireland (who will probably own your mortgage) when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 2.9% rate in December 2023 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (again, subject to certain conditions).

The estimates also assume that you get your loan-to-value ratio (LTV) below 60% so that you are eligible for the Avant and KBC rates listed above. Your LTV is currently 302.0k/500.0k = 60.4%. A slightly higher property valuation (€504k) and/or three more monthly mortgage payments and/or a lump sum 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: you are already eligible, in LTV terms, for the above Permanent TSB, Haven and AIB rates – and Finance Ireland will automatically move you on to the <60% LTV rate (shown above) in 4 months even if you switch to them with an LTV of 60.4%.)

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

You probably already know that being on maternity leave should not be a problem for switching – see here.

It should be possible to get an "all-in" quote (including VAT and outlays) of €1,300 or less from a solicitor – see the three threads about solicitors linked to from this post. Make sure you choose a broker who does not charge you a fee. The valuation fee costs €150 or €185. Some Avant brokers will pay this fee on your behalf.

You can see from the above estimates that there is a trade-off between higher short-term/medium-term savings and the security of a longer-term fixed rate. Only you can decide what suits you best.
 
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Hi Paul, in need of some advise:
Current lender: Ulster Bank
Outstanding mortgage balance: 155k
Approximate value of your property: 270k
The date you started your fixed-rate mortgage: October 2017
How many years you fixed for: 5 years
Your current mortgage interest rate: 3.5%
Your current monthly repayment: €806
Your property's BER: C2
Are you due to get extra cashback from your current lender in the future: Unknown

My query is really to do with Ulster Bank leaving the market and should we jump ship before this happens or stay with Permanent TSB who are taking our mortgage over?
 

Thanks so much Paul. I had done out a few spreadsheets on this but to have all this info in front of me is great! I'll keep ye posted on what the break fee is and what path I end up taking!
 
HI Paul,

Thanks for the quick response. Its much appreciated and really focuses the mind on what our best options are!

Just so you know, I contacted an Avant broker today and was told that I wouldn't be able to drawdown on a mortgage until I had gone back to work and paid a full months wage (which in my case would be October so will rule Avant out for us now which is disappointing). The broker said he's gone through this with Avant before and they wont just accept a letter from the employer with a return to work date/salary etc. PTSB have said the employer letter is sufficient for them.

At this point refixing with KBC looks like our best option.

Thanks,
Ciara
 
That is really annoying.

Edit: Bear in mind that switching is taking most people at least 3 months, so that would take you up to (or close to) the point in October when you'd have been back in work one month. So maybe don't rule out Avant just yet. In this post, user @SuperMario was able to draw down while his partner was still on maternity leave. It's strange that your broker was told that you can't.

If you do decide to refix with KBC, try your best to sneak into the <60% loan-to-value bracket so that you are eligible for the interest rates I quoted. Maybe "remind" the valuer of sale prices for similar house sales that occurred in your area recently

If the valuer gives you a valuation of €500k, you can still get into the <60% LTV bracket by making a €2k overpayment (or less after your next monthly payment goes through).
 
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@Tajean 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. If it is higher than zero, 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 €1,720 over the next 4 years

  • Switching immediately to Ulster Bank's 4- or 5-year fixed rate (2.35% with no cashback) will save you about €840 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 3.0%
    • 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).
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €800 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €540 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 €60 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • If Avant won't let you switch to them and you really want to fix for 7 years for some reason, you could consider Haven's 7-year fixed rate (2.65% with €2,000 cashback)

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €940 over the next 4 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €1,520 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 24 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 €1,820 over the next 4 years – but with the longer security of 7 or 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €3,900 over the next 4 years – but with the 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 (3.0% with no cashback) will leave you worse off by about €4,500 over the next 4 years – but with the 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

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 January 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 60% so that you are eligible for the listed rates. Your LTV estimate is 155.0k/270.0k = 57.4%. If you get a valuation of less than €259k, you will need to make a few more monthly mortgage payments and/or a lump sum 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, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

Tajean said:
My query is really to do with Ulster Bank leaving the market and should we jump ship before this happens or stay with Permanent TSB who are taking our mortgage over?
Click to expand...
If you want to switch to another lender, by all means do – but note that it takes a few months. If you decide to stay with Ulster Bank, make sure that you refix with them immediately so that you lock in one of their rates before your mortgage is taken over by PTSB. (Ulster Bank's rates are lower than PTSB's – a lot lower in some cases.)

Note that if you refix now with Ulster Bank, you may find that you want to switch to another lender in a few years when your Ulster Bank fixed rate expires. That switch will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
 
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Thank you so much for all of your help.
 
@Paul F....Record speed from UB on letter generation and delivery. Break fee calculated as €150.50. Decision maybe based on what happens with ECB over the next week. Switching to an UB rate would be pretty instant compared to waiting for Avant full switch should rates jump significantly over the next weeks/months
 
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Hi Paul.
  • Current lender: KBC
  • Outstanding mortgage balance (how much you still owe): €444,000
  • Approximate current value of your property: €680,000
  • The date you started your fixed-rate mortgage (month and year): July 2020
  • How many years you fixed for: 3
  • Your current mortgage interest rate: 2.3
  • Your current monthly repayment (excluding any overpayments): €1938
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: G
  • Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? No
The break fee is 0 when i requested it from KBC recently. One question I'm self a employed contractor, will it be as easier to switch than it was to get the mortgage originally? I went through a broker in the end after taking forever with banks directly. Thanks.
 
Hi Paul,

Would appreciate any help you can give me. Thanks. PJ
  • Current lender – EBS
  • Outstanding mortgage balance (how much you still owe) €222k
  • Approximate current value of your property €300k
  • The date you started your fixed-rate mortgage (month and year) Nov 2020
  • How many years you fixed for 3 years
  • Your current mortgage interest rate 2.9%
  • Your current monthly repayment (excluding any overpayments) €1033
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary C1
  • Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? None
 
poeticjustice said:
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 (monetary amount) and when? None
Click to expand...
Are you sure you aren't due to get 1% cashback in November 2025?
 
Hi Paul,

Thanks for your help. Hoping to fix soon with Avant, but living rural, in a one off house, so not hopeful about them.
  • Current lender: Bank of Ireland
  • Outstanding mortgage balance (how much you still owe): 123,000
  • Approximate current value of your property: 250,000
  • The date you started your fixed-rate mortgage (month and year): May 2018
  • How many years you fixed for: 5
  • Your current mortgage interest rate: 3%
  • Your current monthly repayment (excluding any overpayments): 815
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: A3
  • Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when?: Don't think so
Many thanks!
 
Paul F said:
Are you sure you aren't due to get 1% cashback in November 2025?
Click to expand...

I don't think so. I may not have been clear with the info I gave. We got the mortgage with EBS in Nov 2017 but our current rate of 2.9% fixed for 3 years was signed in Nov 2020.

I believe it was only 2% cashback in 2017 when we got our original mortgage.

Thanks
 
Quick one on the break fee calculation...

I'm with PTSB and 2 months ago called to get break fee which was 0, called again today and its still 0.

The person I was talking to said that you wont know the break fee until they get the request from the new bank (Avant in this case). I have AIP from Avant, so just going through valuation now.

How volatile is the break fee? How high could it be once requested?

Existing Bank: PTSB
Existing Fixed term and rate: 3 year @ 2.5%
Start date: Jan 2021
Outstanding mortgage balance: 380,000
Approximate value of your property: 560,000
 
Hi Paul,

  • Current lender – AIB
  • Outstanding mortgage balance (how much you still owe) €288,752
  • Approximate current value of your property €420,000
  • The date you started your fixed-rate mortgage (month and year) March 2020
  • How many years you fixed for 5 years
  • Your current mortgage interest rate 2.55%
  • Your current monthly repayment (excluding any overpayments) €1085.47
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary B3
  • 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 (monetary amount) and when? No
Thanks in advance
 
@Dbrode Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC. If it is higher than zero, 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 €8,879 initial cashback and 2% monthly cashback) will save you about €10,500 over the next 3 years
    • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.95%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
    • 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 €7,980 over the next 3 years

  • Switching immediately to AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €6,920 over the next 3 years

  • Switching immediately to Avant Money's 4-year fixed rate (2.05% with no cashback) will save you about €6,820 over the next 3 years

  • Switching immediately to Haven's 5-year fixed rate (2.55% with €5,000 cashback) will save you about €5,400 over the next 3 years

  • Re-fixing immediately on KBC's 3-year fixed rate (2.3% with no cashback) will save you about €4,940 over the next 3 years, and it will "reset the clock" on the fixed-rate period. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Bank of Ireland's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Bank of Ireland customer, the best rate you would be able to switch to today is 3.0%
    • 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 5-year fixed rate (2.25% with no cashback) will save you about €4,240 over the next 3 years

  • Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €4,120 over the next 3 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to AIB's 3-year fixed rate (2.45% with €2,000 cashback) will save you about €3,700 over the next 3 years

  • Switching immediately to KBC's 5-year fixed rate (2.45% with no cashback) will save you about €3,000 over the next 3 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Bank of Ireland rates in the future apply

  • Switching immediately to Avant Money's 7-year fixed rate (2.35% with no cashback) will save you about €2,960 over the next 3 years – but with the 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 save you about €1,520 over the next 3 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will save you about €1,020 over the next 3 years – but with the longer security of 10 years on a fixed rate

  • Switching immediately to Avant Money's "One Mortgage" (a 2.65% fixed rate with no cashback) will leave you worse off by about €920 over the next 3 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 25 years)

  • Switching immediately to KBC's 10-year fixed rate (2.99% with no cashback) will leave you worse off by about €4,000 over the next 3 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • The same warnings as above regarding higher Bank of Ireland rates in the future apply

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.05% with no cashback) will leave you worse off by about €6,120 over the next 3 years – but with the 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 3.05%) will fall to 2.9% in 3 years when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

  • Switching immediately to Finance Ireland's 20-year fixed rate (3.15% with no cashback) will leave you worse off by about €7,420 over the next 3 years – but with the 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
    • And your interest rate (initially 3.15%) will fall to 3.0% in 3 years when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

  • Switching immediately to Finance Ireland's 25-year fixed rate (3.3% with no cashback) will leave you worse off by about €9,360 over the next 3 years – but with the 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
    • And your interest rate (initially 3.3%) will fall to 3.15% in 3 years and 1 month when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

These savings estimates use for comparison the scenario of switching to the 2.9% rate with Bank of Ireland (who will probably own your mortgage) when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 2.9% 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.

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 (provided that at least 3 years have passed since you started the Finance Ireland fixed rate and subject to certain other conditions).

The estimates also assume that your loan-to-value ratio (LTV) is currently 444.0k/680.0k = 65.3%. A slightly property valuation (€740k) and/or a few more monthly mortgage payments and/or a lump sum overpayment would get you into a lower LTV bracket (< 60%), and you would be eligible for lower rates from Avant, KBC and Finance Ireland. But that is probably not a good reason to delay the switch – i.e., you can start the switch immediately.

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

Dbrode said:
One question I'm self a employed contractor, will it be as easier to switch than it was to get the mortgage originally? I went through a broker in the end after taking forever with banks directly.
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It will be about the same difficulty as before, assuming that your income has not suffered in the meantime.

Do you mean that it took ages with the banks directly when you first got your mortgage, or do you mean that you've started the switch recently and it is taking ages? (That is most people's experience recently, with or without a broker.)

Because you are self-employed, it is probably a good idea to go through a broker. Note that Avant have a reputation for being quite picky, so they might not let you switch to them.
 
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@poeticjustice Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with EBS. If it is higher than zero, please post it here when you receive it, including the date of the letter.
  • Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €5,560 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 3.0%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 4-year fixed rate (2.15% with no cashback) will save you about €4,060 over the next 4 years

  • Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €3,540 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.35% with no cashback) will save you about €2,360 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.45% with no cashback) will save you about €1,520 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • If Avant won't let you switch to them and you really want to fix for 7 years for some reason, you could consider Haven's 7-year fixed rate (2.65% with €2,000 cashback)

  • Switching immediately to EBS's 5-year fixed rate (2.75% with no cashback) will save you about €440 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 10-year fixed rate (2.6% with no cashback) will save you about €240 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • If Avant won't let you switch to them and you really want to fix for 10 years for some reason, you could consider Haven's 10-year fixed rate (2.85% with €2,000 cashback)

  • Switching immediately to Avant Money's "One Mortgage" (a 2.75% fixed rate with no cashback) will leave you worse off by about €1,040 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 25 years)

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.15% with no cashback) will leave you worse off by about €4,480 over the next 4 years – but with the 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 3.15%) will fall to 3.05% in 2 years and 1 month when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

  • Switching immediately to Finance Ireland's 20-year fixed rate (3.25% with no cashback) will leave you worse off by about €5,340 over the next 4 years – but with the 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
    • And your interest rate (initially 3.25%) will fall to 3.15% in 2 years and 1 month when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

  • Switching immediately to Finance Ireland's 25-year fixed rate (3.4% with no cashback) will leave you worse off by about €6,620 over the next 4 years – but with the 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
    • And your interest rate (initially 3.4%) will fall to 3.3% in 2 years and 2 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). 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 November 2023 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (provided that at least 3 years have passed since you started the Finance Ireland fixed rate and subject to certain other conditions).

The estimates also assume that your loan-to-value ratio (LTV) is currently 222.0k/300.0k = 74.0%. A higher property valuation (€318k) 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.

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).
 
Last edited:
@HausundGeld 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. If it is higher than zero, 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 €5,020 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €4,580 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 €3,220 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.15% with no cashback) will save you about €2,320 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €1,880 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • If Avant won't let you switch to them and you really want to fix for 7 years for some reason, you could consider Haven's 7-year fixed rate (2.65% with €2,000 cashback)

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will save you about €1,200 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • If Avant won't let you switch to them and you really want to fix for 10 years for some reason, you could consider Haven's 10-year fixed rate (2.85% with €2,000 cashback)

  • Switching immediately to Avant Money's "One Mortgage" (a 2.4% fixed rate with no cashback) will save you about €1,180 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
    • You would have to shorten your mortgage term to 15 years to be eligible for this rate
    • The monthly repayment would be €814

  • Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will not save you or cost you anything over the next 4 years, but it will "reset the clock" on the fixed-rate period. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €1,040 over the next 4 years – but with the 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 10-year fixed rate (3.3% with no cashback) will leave you worse off by about €1,520 over the next 4 years – but with the 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% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 3% rate in May 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.

You should call Bank of Ireland and tell them that you are planning to switch to another lender. Ask them what interest rates they will offer you to break and re-fix with them. Please post a summary of their response here.

If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.

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 (provided that at least 3 years have passed since you started the Finance Ireland fixed rate and subject to certain other conditions).

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).
 
Thanks so much for the helpful information. I will get back with the updates from BOI.
 
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