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

@SpiderBaby Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with AIB. 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 €5,280 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with no cashback) will save you about €2,900 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)

  • Switching immediately to Avant Money's 7-year fixed rate (2.35% with no cashback) will leave you worse off by about €700 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 €1,119
    • 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)

  • Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will leave you worse off by about €2,380 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 €1,141
    • 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)

  • Switching immediately to Avant Money's "One Mortgage" (a 2.65% fixed rate with no cashback) will leave you worse off by about €4,060 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 €1,164

  • Switching immediately to AIB's 7-year fixed rate (3.05% with no cashback) will leave you worse off by about €7,280 over the next 4 years – but with the 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).

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.05% with no cashback) will leave you worse off by about €8,600 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 6 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 AIB's 10-year fixed rate (3.2% with no cashback) will leave you worse off by about €8,980 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 20-year fixed rate (3.15% with no cashback) will leave you worse off by about €9,740 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 6 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.

  • Switching immediately to Finance Ireland's 25-year fixed rate (3.3% with no cashback) will leave you worse off by about €11,460 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 6 years and 9 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 2.15% rate with AIB when the current fixed rate ends. And that's assuming that AIB are even offering a 2.15% rate in March 2025 – 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) really is below 70% so that you are eligible for the listed rates. Your LTV estimate is 288.8k/420.0k = 68.8%. If you get a valuation of less than €413k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €8,280 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

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).
 
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@bluecabbage In your particular case it is very unlikely that you will have a break fee for the foreseeable future.

This rate (currently +1.07%) would have to drop below about –0.51% (which was the level of the relevant rate in January 2021) before you would have a break fee.
 
Hi Paul,

Thanks so much. Incredibly helpful. I'll look into it further and will post break fee when I get it.
 
Thank you for this thread, so helpful

  • Current lender: PTSB
  • Outstanding mortgage balance (how much you still owe): 330.7k
  • Approximate current value of your property: 550k
  • The date you started your fixed-rate mortgage (month and year): sept 2020
  • How many years you fixed for:5
  • Your current mortgage interest rate: 2.55%
  • Your current monthly repayment (excluding any overpayments): 1810
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: B2
  • Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when?: I got 2% back on drawdown and get 2% back monthly
 
@Eleanorrigby Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Permanent TSB. 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 €6,460 over the next 4 years

  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €5,040 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €4,620 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 7-year fixed rate (2.25% with no cashback) will save you about €1,360 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 €5,000 cashback)

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €500 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 €5,000 cashback)

  • Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €1,720 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 19 years)

  • Switching immediately to Permanent TSB's 5-year green fixed rate (2.8% with 2% monthly cashback) will leave you worse off by about €2,520 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 Permanent TSB's 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €5,000 over the next 4 years – but with the 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).

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €6,700 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

These savings estimates use for comparison the scenario of switching to the 2.8% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.8% rate in September 2025 – it could be higher (or lower). You would continue to get the Permanent TSB monthly cashback in such a scenario. 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 Permanent TSB and tell them that you have started the process of switching to another lender. Ask them if they will let you switch to their 2.35% green 5-year fixed rate (normally only available to new customers). 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 (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 you get your loan-to-value ratio (LTV) below 60% so that you are eligible for the listed rates. Your LTV is currently 330.7k/550k = 60.1%. A slightly higher property valuation (€552k) and/or two more monthly mortgage payments and/or a small 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.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €9,460 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

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).
 
Hi Paul

Fair play putting all the work in here, it's helping a lot of people.

Current lender: Permanent TSB
Outstanding mortgage balance: €313k
Approximate value of your property: €450k
The date you started your fixed-rate mortgage: March 2020
How many years you fixed for: 3
Your current mortgage interest rate: 2.90%
Your current monthly repayment: €1,285
Your property's BER: A3
Are you due to get extra cashback from your current lender in the future: No


I am really keen to understand the Interbank rates and how you obtain the correct rate based on the date of commencement, and the rate for the remaining fixed period. These are "I" & "S" in the nomenclature of the PTSB calculation. I've calculated a few times but have never been confident that the rates I am using are correct.

I have the link to Erste Group Site where you estimate rates, if you could let me know what rates you would use in this instance so I can try replicate I'd really appreciate it.

Many thanks,
J
 
Thank you for this thread, so helpful

  • Current lender: Ulster Bank
  • Outstanding mortgage balance (how much you still owe): €258,284.37
  • Approximate current value of your property: €410
  • The date you started your fixed-rate mortgage (month and year): Nov 2019
  • How many years you fixed for: 5yrs
  • Your current mortgage interest rate: 2.60%
  • Your current monthly repayment (excluding any overpayments): €1142.05
  • 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?: N/A
Thanks in Advance
 
@Jimmy85 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Permanent TSB. 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 €9,540 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €7,720 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 Bank of Ireland's 7-year green fixed rate (2.25% with no cashback) will save you about €4,500 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • Note that Bank of Ireland 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 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 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 €3,240 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 €1,212

  • Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will save you about €1,420 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 €1,237
    • 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)

  • Switching immediately to Permanent TSB's 5-year green fixed rate (2.8% with 2% monthly cashback) will save you about €200 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 "One Mortgage" (a 2.65% fixed rate with no cashback) will leave you worse off by about €400 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 €1,261

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €2,260 over the next 4 years – but with the 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).

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.05% with no cashback) will leave you worse off by about €5,300 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 6 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 €6,520 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 6 years and 5 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 €8,360 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 6 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.

I am assuming that you are currently receiving 2% of your monthly mortgage payment (€25) back in cash from Permanent TSB.

These savings estimates use for comparison the scenario of switching to the 2.8% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.8% rate in March 2023 – it could be higher (or lower). You would continue to get the Permanent TSB monthly cashback in such a scenario. 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 Permanent TSB and tell them that you have started the process of switching 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 (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) really is below 70% so that you are eligible for the Avant and Finance Ireland rates listed above. (You do not have to worry about your LTV for the other rates.) Your LTV estimate is 313.0k/450.0k = 69.6%. If you get a valuation of less than €448k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €12,540 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

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).

Here is an old post showing a worked example of calculating a break fee estimate. In your case, R is the 3-year rate as it was in March 2020 (approximately –0.39%). And R1 is the 1-year rate today (approximately +1.05%).
 
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@april77 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 Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €7,220 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €5,740 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 Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €4,700 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.8%
    • 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 Avant Money's 7-year fixed rate (2.35% with no cashback) will save you about €1,720 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 €5,000 cashback)

  • Switching immediately to Avant Money's 10-year fixed rate (2.5% 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 €5,000 cashback)

  • Switching immediately to Avant Money's "One Mortgage" (a 2.65% fixed rate with no cashback) will leave you worse off by about €1,260 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 26 years)

  • Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.95% with no cashback) will leave you worse off by about €2,760 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).
    • Note that if you decide to do this, your mortgage will soon move onto Permanent TSB's books, and they discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Permanent TSB customer, the best rate you would be able to switch to today is 2.8%
    • 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 Finance Ireland's 10- or 15-year fixed rate (3.05% with no cashback) will leave you worse off by about €5,240 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 1 year and 10 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 €6,240 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 1 year and 11 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 €7,760 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 1 year and 11 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 2.8% rate with Permanent TSB (who will probably own your mortgage) when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.8% rate in January 2025 – 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 258.3k/410.0k = 63.0%. A higher property valuation (€431k) 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, Ulster Bank and Finance Ireland. Let me know if you would like estimates for that scenario.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €10,220 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

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).
 
Great thread and thanks Paul for all the hard work put into it. Here is my scenario below:

Current lender: PTSB
Outstanding mortgage balance: 289k (Hope to knock a chunk off this with lump sum when making switch)
Approximate value of your property: 500k
The date you started your fixed-rate mortgage: July 2021
How many years you fixed for: 3
Your current mortgage interest rate: 2.5%
Your current monthly repayment: €1169
Your property's BER: A3
Are you due to get extra cashback from your current lender in the future: I get 2% mostly cashback on mortgage repayments but also pay €6 in account fees.

I recently requested break fee which came to be zero but valid for the usual 10 days. I had only really considered switching to AIB and got the ball briefly rolling with them online but open to alternatives. We are hoping to make a lump sum payment of 40K off the principal which could potentially bring us to 50% LTV.

Any advice welcome and appreciated. Many thanks.
 
@Housebuyerqs Your break fee should be zero at the moment – but confirm it with Permanent TSB. 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 €6,940 over the next 4 years

  • Switching immediately to Avant Money's 4-year fixed rate (1.95% with no cashback) will save you about €5,460 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €5,260 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 5-year fixed rate (2.15% with no cashback) will save you about €3,220 over the next 4 years

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €2,120 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 €5,000 cashback)

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will save you about €440 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 €5,000 cashback)

  • Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €680 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 29 years)

  • Switching immediately to Permanent TSB's 5-year green fixed rate (2.8% with 2% monthly cashback) will leave you worse off by about €1,740 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 Permanent TSB's 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €3,980 over the next 4 years – but with the 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).

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €5,180 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 €6,300 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

  • Switching immediately to Finance Ireland's 25-year fixed rate (3.15% with no cashback) will leave you worse off by about €8,000 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

These savings estimates use for comparison the scenario of switching to the 2.8% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.8% rate in July 2024 – it could be higher (or lower). You would continue to get the Permanent TSB monthly cashback in such a scenario. 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 Permanent TSB and tell them that you have started the process of switching 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 (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) really is below 60% so that you are eligible for the Avant and Finance rates listed above. Your LTV estimate is 289.0k/500.0k = 57.8%. If you get a valuation of less than €482k, 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.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €9,940 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

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).

Housebuyerqs said:
I had only really considered switching to AIB and got the ball briefly rolling with them online but open to alternatives. We are hoping to make a lump sum payment of 40K off the principal which could potentially bring us to 50% LTV.
Click to expand...
Reducing your balance may not be the best use of your money. (In your case, the only lower rate that it would make you eligible for is AIB's 2.1% green rate, for LTV<50%.) Your priorities should usually be:
  • Paying off expensive debt (credit cards, personal loans, car loans, etc.)
  • Building up an emergency fund in a savings/current account (3 to 6 months' living expenses)
  • Saving money for any expenses you will have over the next few years (kids; childcare; adult children going to college, etc.)
  • Maxing out your pension contributions (very large tax relief is given)
  • Overpaying your mortgage
in approximately that order. Consider posting a thread about your situation in the Money Makeover forum.
 
Hi Paul,

Many thanks for taking the time to review my scenario as follows.

Current lender: BOI
Outstanding mortgage balance: 304k
Approximate value of your property: 450k
The date you started your fixed-rate mortgage: Sept 2019
How many years you fixed for: 5
Your current mortgage interest rate: 2.8%
Your current monthly repayment: €1334
Your property's BER: A2
Are you due to get extra cashback from your current lender in the future: Yes. 1% (€3,195) after 5 years.

Worried about rates rising and wondering if I should break and re-fix now rather than waiting for the cashback in 2 years. Appreciate any advice you can give. Thanks!
 
@purplemonkey 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 €7,240 over the next 4 years

  • Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €5,500 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 7-year fixed rate (2.35% with no cashback) will save you about €1,120 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 €5,000 cashback)

  • Switching immediately to Avant Money's 10-year fixed rate (2.5% with no cashback) will leave you worse off by about €640 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 €5,000 cashback)

  • Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,195) cashback) will leave you worse off by about €1,840 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 Avant Money's "One Mortgage" (a 2.65% fixed rate with no cashback) will leave you worse off by about €2,400 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 27 years)

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€3,195) cashback) will leave you worse off by about €5,540 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 €7,120 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 4 years and 5 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 €8,300 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 4 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 €10,080 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 4 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 September 2024 – it could be higher (or lower). You would get the Bank of Ireland €3,195 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 have started the process of switching 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 (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) really is below 70% so that you are eligible for the listed rates. Your LTV estimate is 304.0k/450.0k = 67.6%. If you get a valuation of less than €435k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 70%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €10,240 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

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).
 
Current lender: Kbc
Outstanding mortgage balance: 95K
Approximate value of your property: 350k
The date you started your fixed-rate mortgage: May 2019
How many years you fixed for: 5
Your current mortgage interest rate: 2.55%
Your current monthly repayment: 535 approx
Your property's BER: B3
Are you due to get extra cashback from your current lender in the future: No

I rang KBC this morning my breakage fee is Zero

my options with KBC are

2.4% for 5 year fixed
2.85% for 10 year fixed

Or would you stay in and roll the dice with Bank Of Ireland

Or go elsewhere.

Considering in staying and fixing again for 10 year fixed with KBC as no paperwork or hassle etc everything would be straight forward, just wondering would the 2.4 for 5 years be a better option.

What do you guys think???
 
@Niall-1980
  • Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €3,120 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 €2,780 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 Haven's 5-year fixed rate (2.55% with €2,000 cashback) will save you about €1,180 over the next 4 years

  • Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €1,170 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 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 2.9%
    • So if you switch to this KBC offer now, you will probably not be eligible to switch to one of Bank of Ireland's low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

  • Switching immediately to Avant Money's 7-year fixed rate (2.25% with no cashback) will save you about €220 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • You are probably not eligible to switch to any Avant rate – see below
    • 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). That will save you about €840 over the next 4 years.

  • Switching immediately to Avant Money's 10-year fixed rate (2.4% with no cashback) will leave you worse off by about €320 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). That will save you about €120 over the next 4 years.

  • Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will leave you worse off by about €430 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).
    • The same warnings as above regarding higher Bank of Ireland rates in the future apply

  • Switching immediately to Avant Money's "One Mortgage" (a 2.5% fixed rate with no cashback) will leave you worse off by about €680 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 19 years)

  • Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €2,100 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

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 May 2024 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

It may seem like it is not worth switching to another lender but bear in mind that your mortgage will soon be owned by Bank of Ireland, whose rates are much higher than KBC's. So if you don't switch now, you might find that you really want to switch in a few years' time, at which point rates might be higher (and it might be impossible to switch if your financial situation has deteriorated).

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

Because your outstanding mortgage balance is less than €100k, it is probably not possible to switch to Avant. But you should check this with more than one broker. It should still be possible to switch to a lender other than Avant.
 
Hi Paul

I called PTSB and they confirmed the break fee was 0 over the phone, letter on the way.

The gentleman on the phone came across as completely frustrated with me asking the question, he stated that at the moment they have waived break fee's for fixed rate customers... I found that bizarre... I know swap rates are high at the moment but there would be people out there that fixed higher surely. Il post the letter date and confirmation once I receive it.

I called PTSB and informed them I was going to break my existing loan and re fix with another lender. They said the best they could do for me was offer me 2.8% fixed Green rate mortgage, they offered me 4 other options all higher than 2.9%. I asked them for the 2.05% Fixed Green rate and they said this was not possible and I could only avail of the 2.8%. That was the end of the conversation.. They are going to post a letter of what's available to me breaking and re-fixing with them but it's pointless really.

Thanks for the info on the interbank historical rates, I completely understand now.

J
 
That seems very strange indeed. Maybe they have waived the break fees for the moment, or maybe they haven't but all of the break fee quotes that the guy has seen lately are zero.
 
Thanks a million Paul for the quick response.

I’m think I’m gonna go for the 10 year fixed with KBC @ 2.85%. No paperwork and security for 10 years.

Do you think I’m stupid do to be leaving 2 years of 2.55 to go to 2.85 when it is only .5 less than Bank of irelands would be 2.90?
 
Niall-1980 said:
I’m think I’m gonna go for the 10 year fixed with KBC @ 2.85%. No paperwork and security for 10 years.

Do you think I’m stupid do to be leaving 2 years of 2.55 to go to 2.85 when it is only .5 less than Bank of irelands would be 2.90?
Click to expand...
The thing is, Bank of Ireland's rate is 2.9% at the moment. Who knows what it will be in two years' time.

And 2.9% is BOI's two-year fixed rate – their ten-year fixed rate is currently 3.3! And who knows what that will be in two years' time.
 
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