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

[Paul F]

Current lender: BOI
Outstanding mortgage balance: €230,892
Approximate value of your property: €525,000
The date you started your fixed-rate… December 19th 2020
How many years you fixed for: 5 years
Your current mortgage interest rate: 3.00%
Your current monthly repayment: [€1,011.85]
Your property's BER: B3
Are you due to get extra cashback from your current lender in the future: 2,400
Left on mortgage: 28 years

@Lecoqdiesel 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 €7,080 over the next 4 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €6,180 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 7-year fixed rate (2.65% with €2,000 cashback) will save you about €1,280 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €1,040 over the next 4 years
  
  
• Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€2,400) 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 Haven's 10-year fixed rate (2.85% with €2,000 cashback) will leave you worse off by about €520 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €760 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€2,400) cashback) will leave you worse off by about €2,860 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 (2.9% with no cashback) will leave you worse off by about €3,000 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
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €3,440 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €3,900 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 €5,240 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
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €7,500 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 3.5% fixed rate with no cashback) will leave you worse off by about €8,400 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 28 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of switching to a 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 December 2025 – it could be higher (or lower). You would get the Bank of Ireland €2,400 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

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).

Refixing with BOI on their green mortgage as the house is B3. That would be 2.7% for 5 years. Probably forfeiting the 2,400 due at end of current term. Not sure on that actually.

You are not eligible for BOI's green rates – they are only available to new customers. (Bank of Ireland discriminate between new and existing customers, i.e., their best rates are not available to existing customers.)

Any insight into what could be the best strategy here would be most welcome.

Only you can decide that. It comes down to factors like how much you value the certainty of a long-term fixed rate versus the bigger savings from a shorter-term fixed rate, and how likely you think it is that you will move home in the next few years.

 

[Lecoqdiesel]

@Lecoqdiesel 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 €7,080 over the next 4 years
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €6,180 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 7-year fixed rate (2.65% with €2,000 cashback) will save you about €1,280 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €1,040 over the next 4 years
  
  
• Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€2,400) 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 Haven's 10-year fixed rate (2.85% with €2,000 cashback) will leave you worse off by about €520 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €760 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€2,400) cashback) will leave you worse off by about €2,860 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 (2.9% with no cashback) will leave you worse off by about €3,000 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
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €3,440 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €3,900 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 €5,240 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
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €7,500 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 3.5% fixed rate with no cashback) will leave you worse off by about €8,400 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 28 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of switching to a 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 December 2025 – it could be higher (or lower). You would get the Bank of Ireland €2,400 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

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 are not eligible for BOI's green rates – they are only available to new customers. (Bank of Ireland discriminate between new and existing customers, i.e., their best rates are not available to existing customers.)


Only you can decide that. It comes down to factors like how much you value the certainty of a long-term fixed rate versus the bigger savings from a shorter-term fixed rate, and how likely you think it is that you will move home in the next few years.

Thanks a lot Paul for your valued input.

I called BOI this morning. As you expected, break fee is currently 0 as of today.

I asked about re-fixing and an interest rate of 2.9% was the lowest they can offer for a term of either 1 or 2 years. Beyond that is was 3.1% for 5 years and up to 3.6% for 10 years if I am remembering correctly. He threw the figures at me quickly and I was only interested in the lower interest rate.

I think I'll begin the process of applying to both Haven and AIB as per the 2 that offer the greatest savings at present in your above mail.

 

[40sfinance]

• Current lender: Ulster Bank
• Outstanding mortgage balance (how much you still owe): €272,768
• Approximate current value of your property: ~ €500,000
• The date you started your fixed-rate mortgage (month and year): Feb 2022 (Current product ends Feb 2024)
• How many years you fixed for: 2 years
• Your current mortgage interest rate: 2.1%
• Your current monthly repayment (excluding any overpayments): €1,250.78
• 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?: No

Any feedback very much appreciated Paul.

 

[Paul F]

• Current lender: Ulster Bank
• Outstanding mortgage balance (how much you still owe): €272,768
• Approximate current value of your property: ~ €500,000
• The date you started your fixed-rate mortgage (month and year): Feb 2022 (Current product ends Feb 2024)
• How many years you fixed for: 2 years
• Your current mortgage interest rate: 2.1%
• Your current monthly repayment (excluding any overpayments): €1,250.78
• 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?: No

@40sfinance I'll assume that your current rate is actually 2.2%. Is that correct?

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 will 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 something like: "Based on today's information this would result in an early redemption charge of €X to no longer be bound by this fixed rate." That amount is your break fee. Ignore all other references to break fees/breakage costs.

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,455 initial cashback and 2% monthly cashback) will save you about €6,980 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 right now, the best rate you would be able to switch to today is 2.8%
  • 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 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €6,220 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 €4,660 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 AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €4,160 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €3,600 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 interest rate won't change for 5 years but 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 right now, 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).
  
  
• Switching immediately to Bank of Ireland's 7-year green fixed rate (2.25% with no cashback) will save you about €1,640 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 right now, 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).
  • Or you could consider Haven's 7-year fixed rate (2.65% with €5,000 cashback). It will save you less than Bank of Ireland over the next 7 years (€3,460 versus €5,420), but Haven's rates might be lower than Bank of Ireland's in the future.
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €380 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will leave you worse off by about €480 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €2,560 over the next 4 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 €2,640 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 €5,160 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €5,700 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €6,220 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 Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €10,420 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 3.5% fixed rate with no cashback) will leave you worse off by about €11,460 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 23 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates. (That is not a major consideration if you decide to re-fix with Ulster Bank, since re-fixing with your current lender is usually quick to do.)

These savings estimates use for comparison the scenario of switching to a 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 April 2024 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

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 €9,220 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.

Some of the above lenders will only let you switch to them if you have had a mortgage with your current lender for at least 12 months. See this thread for more details.

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).

 

[debbieharry]

Hello, and thanks for this in advance;

• Current lender - BOI
• Outstanding mortgage balance (how much you still owe) - ~€351,000
• Approximate current value of your property - €600,000
• The date you started your fixed-rate mortgage (month and year) - July 2019
• How many years you fixed for - 5 years
• Your current mortgage interest rate - 3.2%
• Your current monthly repayment (excluding any overpayments) - €1,612
• Your property's BER (Building Energy Rating) – A3
• Are you due to get extra cashback from your current lender in the future - €3,700 due July 2024

BOI have offered me this week a 5 year fix at 3% or 10 year fix at 3.3%

I am tempted to fix with them for 10 years, but interested in what you think and the alternatives.

Thanks again

 

[stuckinflat]

I am in the process of evaluating options here too and would appreciate advice:

• Current lender - BOI
• Outstanding mortgage balance (how much you still owe) - €115,000
• Approximate current value of your property - €350-400,000
• The date you started your fixed-rate mortgage (month and year) - Fixed ended last month
• How many years you fixed for - Variable at present
• Your current mortgage interest rate - 4.2%
• Your current monthly repayment (excluding any overpayments) - €637
• Your property's BER (Building Energy Rating) – B2
• Are you due to get extra cashback from your current lender in the future - No

BOI have offered me this week a 5 year fix at 3% or 10 year fix at 3.3%

We have approx 20 years left, fixed term expired last month, so need to decide if fixing with BOI at 3% or trying to get a better rate elsewhere?

 

[Paul F]

• Current lender - BOI
• Outstanding mortgage balance (how much you still owe) - ~€351,000
• Approximate current value of your property - €600,000
• The date you started your fixed-rate mortgage (month and year) - July 2019
• How many years you fixed for - 5 years
• Your current mortgage interest rate - 3.2%
• Your current monthly repayment (excluding any overpayments) - €1,612
• Your property's BER (Building Energy Rating) – A3
• Are you due to get extra cashback from your current lender in the future - €3,700 due July 2024

@debbieharry 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 5-year green fixed rate (2.35% with €7,019 initial cashback and 2% monthly cashback) will save you about €13,120 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 right now, the best rate you would be able to switch to today is 2.8%
  • 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 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €11,720 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €9,700 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 7-year fixed rate (2.65% with €5,000 cashback) will save you about €5,940 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €3,600 over the next 4 years
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €3,220 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,700) cashback) will save you about €1,320 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 5-year fixed rate (2.65% with no cashback) will save you about €900 over the next 4 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 €2,500 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% and you would get the 1% (€3,700) cashback) will leave you worse off by about €2,920 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €3,180 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €3,860 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 €5,920 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
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €9,340 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 3.5% fixed rate with no cashback) will leave you worse off by about €10,700 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 27 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of switching to a 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 July 2024 – it could be higher (or lower). You would get the Bank of Ireland €3,700 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (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 listed rates. Your LTV estimate is 351.0k/600.0k = 58.5%. If you get a valuation of less than €585k, 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 €14,720 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).

 

[debbieharry]

@debbieharry 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 5-year green fixed rate (2.35% with €7,019 initial cashback and 2% monthly cashback) will save you about €13,120 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 right now, the best rate you would be able to switch to today is 2.8%
  • 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 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €11,720 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €9,700 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 7-year fixed rate (2.65% with €5,000 cashback) will save you about €5,940 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €3,600 over the next 4 years
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €3,220 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,700) cashback) will save you about €1,320 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 5-year fixed rate (2.65% with no cashback) will save you about €900 over the next 4 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 €2,500 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% and you would get the 1% (€3,700) cashback) will leave you worse off by about €2,920 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €3,180 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €3,860 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 €5,920 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
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €9,340 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 3.5% fixed rate with no cashback) will leave you worse off by about €10,700 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 27 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of switching to a 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 July 2024 – it could be higher (or lower). You would get the Bank of Ireland €3,700 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (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 listed rates. Your LTV estimate is 351.0k/600.0k = 58.5%. If you get a valuation of less than €585k, 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 €14,720 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).

This is great detail Paul - that PTSB offer looks attractive. Myself and my partner need to move our joint account as we are with KBC so moving to PTSB with that offer would be beneficial.

I was unaware of that offer from PTSB, so sincere thanks for bringing it to my attention. The question I need to answer for myself now is whether I am comfortable that in 5 years the prevailing environment will suit fixing again, or if we push that out to 7 with Haven. Impossible to predict the future of course. Will the current inflation and interest rate environment circumstance be well behind us in 5 years. Impossible to say. Impossible to say the same for 7 years of course. So I must come up with some balance of probabilities.

BOI have confirmed break cost is zero with a latter dated 18 Aug.

 

[Paul F]

• Current lender - BOI
• Outstanding mortgage balance (how much you still owe) - €115,000
• Approximate current value of your property - €350-400,000
• The date you started your fixed-rate mortgage (month and year) - Fixed ended last month
• How many years you fixed for - Variable at present
• Your current mortgage interest rate - 4.2%
• Your current monthly repayment (excluding any overpayments) - €637
• Your property's BER (Building Energy Rating) – B2
• Are you due to get extra cashback from your current lender in the future - No

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

I am assuming that your monthly repayment on the BOI variable rate is actually €709, and not €637 as you stated. Is that correct?

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €10,120 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €9,700 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 7-year fixed rate (2.65% with €2,000 cashback) will save you about €7,320 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €6,460 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €6,160 over the next 4 years
  
  
• Switching immediately to AIB's 10-year fixed rate (3.1% with €2,000 cashback) will save you about €5,360 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €5,280 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will save you about €5,260 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 Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will save you about €4,200 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will save you about €3,980 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will save you about €3,800 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 (3.0% with no cashback) will save you about €3,760 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 Avant Money's 10-year fixed rate (3.4% with no cashback) will save you about €2,020 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 3.5% fixed rate with no cashback) will save you about €1,580 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 20 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of staying on the variable rate with Bank of Ireland and assume that that rate doesn't change between now and August 2026 (which is very unlikely). 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).

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).

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

 

[stuckinflat]

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

I am assuming that your monthly repayment on the BOI variable rate is actually €709, and not €637 as you stated. Is that correct?

• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €10,120 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €9,700 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 7-year fixed rate (2.65% with €2,000 cashback) will save you about €7,320 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €6,460 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €6,160 over the next 4 years
  
  
• Switching immediately to AIB's 10-year fixed rate (3.1% with €2,000 cashback) will save you about €5,360 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €5,280 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will save you about €5,260 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 Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will save you about €4,200 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will save you about €3,980 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will save you about €3,800 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 (3.0% with no cashback) will save you about €3,760 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 Avant Money's 10-year fixed rate (3.4% with no cashback) will save you about €2,020 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 3.5% fixed rate with no cashback) will save you about €1,580 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 20 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of staying on the variable rate with Bank of Ireland and assume that that rate doesn't change between now and August 2026 (which is very unlikely). 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).

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).

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

 

[stuckinflat]

Amazing, thank you for the analysis !!

 

[40sfinance]

@40sfinance I'll assume that your current rate is actually 2.2%. Is that correct?

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 will 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 something like: "Based on today's information this would result in an early redemption charge of €X to no longer be bound by this fixed rate." That amount is your break fee. Ignore all other references to break fees/breakage costs.

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,455 initial cashback and 2% monthly cashback) will save you about €6,980 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 right now, the best rate you would be able to switch to today is 2.8%
  • 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 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €6,220 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 €4,660 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 AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €4,160 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €3,600 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 interest rate won't change for 5 years but 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 right now, 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).
  
  
• Switching immediately to Bank of Ireland's 7-year green fixed rate (2.25% with no cashback) will save you about €1,640 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 right now, 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).
  • Or you could consider Haven's 7-year fixed rate (2.65% with €5,000 cashback). It will save you less than Bank of Ireland over the next 7 years (€3,460 versus €5,420), but Haven's rates might be lower than Bank of Ireland's in the future.
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €380 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will leave you worse off by about €480 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €2,560 over the next 4 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 €2,640 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 €5,160 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €5,700 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €6,220 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 Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €10,420 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 3.5% fixed rate with no cashback) will leave you worse off by about €11,460 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 23 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates. (That is not a major consideration if you decide to re-fix with Ulster Bank, since re-fixing with your current lender is usually quick to do.)

These savings estimates use for comparison the scenario of switching to a 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 April 2024 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

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 €9,220 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.

Some of the above lenders will only let you switch to them if you have had a mortgage with your current lender for at least 12 months. See this thread for more details.

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 Paul, apologies for the misttype. Asked for the break letter and will let you know how we get on

 

[cheirin123]

• Current lender - KBC
• Outstanding mortgage balance (how much you still owe) - ~€430,000
• Approximate current value of your property - €800,000
• The date you started your fixed-rate mortgage (month and year) - Feb 2021
• How many years you fixed for - 2 years
• Your current mortgage interest rate - 2.25%
• Your current monthly repayment (excluding any overpayments) - €1,997
• Your property's BER (Building Energy Rating) – A2
• Are you due to get extra cashback from your current lender in the future - No

 

[MossySea]

I have quite a particular question.
We are currently on an excessively high variable rate (follow on from cash back offer with EBS). Long overdue switching rates/providers.

LTV ~50%, 750k value, 360k mortgage. House will need further work. Sub B3 BER.
Anticipate doing work on house in coming 3 yrs and needing a top up on mortgage to finance it.

Have previous AIP from BoI for switching and top up.
EBS -exsiting lender.
Note - I have a shared property with a family member which is being rented currently (some providers would not give approval).

Who to switch to:
Avant - broker has just told me that they don't provide for top ups and avoid any structural work being done on properties. Fixed rate 3yr 2.25%
BoI - take the cash back (2%) and be in position to get top up at point we need it. 3% fixed rate 3yr.
EBS - stay with provider, fix immediately at 2.75%. awaiting info on top up.

If I go with Avant - what guide could someone give me on breakage fee? say half way or 2/3rds through term.
I am concerned with switching again in a couple of yrs to provider who'll give the top up: may be doing it at a much higher rate if the rates continue to rise.

I'd appreciate anyone who can tell me if I'm thinking about this in the wrong way.

 

[Paul F]

We are currently on an excessively high variable rate (follow on from cash back offer with EBS).

• What is your current interest rate?
• What is your monthly repayment?
• Did you get your "1% extra cashback" from EBS after 5 years (if you were entitled to that)?

Note - I have a shared property with a family member which is being rented currently (some providers would not give approval).

Are you saying that you have a second property (apart from your main home) that is jointly owned with a family member and rented out?

Which lenders would not give you approval on your main home?

 

[Paul F]

• Current lender - KBC
• Outstanding mortgage balance (how much you still owe) - ~€430,000
• Approximate current value of your property - €800,000
• The date you started your fixed-rate mortgage (month and year) - Feb 2021
• How many years you fixed for - 2 years
• Your current mortgage interest rate - 2.25%
• Your current monthly repayment (excluding any overpayments) - €1,997
• Your property's BER (Building Energy Rating) – A2
• Are you due to get extra cashback from your current lender in the future - No

@cheirin123 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 green fixed rate (2.35% with €8,599 initial cashback and 2% monthly cashback) will save you about €9,300 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 right now, the best rate you would be able to switch to today is 2.8%
  • 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 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €6,760 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €4,320 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 €700 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 right now, 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 KBC's 5-year fixed rate (2.4% with no cashback) will leave you worse off by about €460 over the next 4 years. But it is very simple to do (no bank statements, salary cert or solicitor, etc., needed). Be aware that it is currently taking KBC a long time to process these 'break and re-fix' requests, and they might increase their interest rates before they process yours – see this thread. So if you go this route you might want to simultaneously start the process of switching to another lender (and you can abandon that switch if your re-fix with KBC happens at a satisfactory interest rate).
  • Note that if you decide to do this, your interest rate won't change for 5 years but 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
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  • Or you could switch to KBC's 3-year fixed rate (2.25% with no cashback)
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will leave you worse off by about €860 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will leave you worse off by about €2,620 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year green fixed rate (3.0% with €8,599 cashback) will leave you worse off by about €3,020 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will leave you worse off by about €4,140 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €5,900 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 €7,840 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple to do (no bank statements, salary cert or solicitor, etc., needed). Be aware that it is currently taking KBC a long time to process these 'break and re-fix' requests, and they might increase their interest rates before they process yours – see this thread. So if you go this route you might want to simultaneously start the process of switching to another lender (and you can abandon that switch if your re-fix with KBC happens at a satisfactory interest rate).
  • 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 (2.9% with no cashback) will leave you worse off by about €10,000 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
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €10,820 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €11,640 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 Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €18,260 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 3.5% fixed rate with no cashback) will leave you worse off by about €19,920 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 23 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of switching to a 2.4% rate with KBC when the current fixed rate ends. And that's assuming that KBC (or Bank of Ireland, if they have taken over your mortgage by then) are even offering a 2.4% rate in February 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).

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 €9,760 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).

I note from your previous posts that you are a multiple switcher. There is no guarantee that you will get the cashback from any of the above lenders that you have already been a customer of. (For example, EBS won't let you get cashback twice on the same property.) You should find out from each lender what their attitude is.

 

[toby2111]

• Current lender: PTSB
• Outstanding mortgage balance (how much you still owe): €207000
• Approximate current value of your property: ~ €380000
• The date you started your fixed-rate mortgage (month and year): Sept 2018 (Current product ends Oct 2023)
• How many years you fixed for: 5 years
• Your current mortgage interest rate: 3.25%
• Your current monthly repayment (excluding any overpayments): €1,092.92
• 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?: Yes,getting 2% cashback monthly on repayments which will expire Dec 2027.

Hi Paul,I posted a few months back but only now have we gotten around to gathering all our documents to send to the online broker tomorrow. In a bit of a dilemma....I'm aware that rates are due to go up when ECB meet soon and will probably go up at least .5%
I can get a 5 year Green rate from PTSB of 2.8%. With the cashback that brings it down to roughly 2.6%. Currently best rate is with Haven,4 year Green rate at 2%....but I'm guessing that will be 2.5% after the ECB rate hike. Break fee is currently zero so should I just lock in the PTSB 5 year green rate at 2.8%, push on with the switching process and see what comes of it?I'm hearing its taking up to 12 weeks for some switches to go through so rates could even be higher by time we might drawdown. Finally,if we did lock in at PTSB 2.8% and broker got us a better rate, would the break fee be very high?
I know PTSB rates are poor and they discriminate between new and existing customers but am just trying to figure out my best options. Thanks

 

[Paul F]

• Current lender: PTSB
• Outstanding mortgage balance (how much you still owe): €207000
• Approximate current value of your property: ~ €380000
• The date you started your fixed-rate mortgage (month and year): Sept 2018 (Current product ends Oct 2023)
• How many years you fixed for: 5 years
• Your current mortgage interest rate: 3.25%
• Your current monthly repayment (excluding any overpayments): €1,092.92
• 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?: Yes,getting 2% cashback monthly on repayments which will expire Dec 2027.

@toby2111 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 €7,040 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €5,860 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 7-year fixed rate (2.65% with €2,000 cashback) will save you about €1,940 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €1,480 over the next 4 years
  
  
• Switching immediately to Bank of Ireland's 10-year green fixed rate (3.0% with €4,140 cashback) will save you about €1,320 over the next 4 years – but with the longer security of 10 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 right now, 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 Permanent TSB's 5-year green fixed rate (2.8% with 2% monthly cashback) will save you about €960 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 Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €360 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €100 over the next 4 years
  
  
• Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €620 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 €2,060 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €2,460 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €2,860 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 Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €6,040 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 3.5% fixed rate with no cashback) will leave you worse off by about €6,820 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 22 years)

The above Avant rates include their rate increases of 15 August 2022. While Avant's rates are not the lowest at present, it is possible that they will be amongst the lowest in the near future when other lenders increase their rates.

These savings estimates use for comparison the scenario of switching to a 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 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).

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).

In a bit of a dilemma....I'm aware that rates are due to go up when ECB meet soon and will probably go up at least .5%
I can get a 5 year Green rate from PTSB of 2.8%. With the cashback that brings it down to roughly 2.6%. Currently best rate is with Haven,4 year Green rate at 2%....but I'm guessing that will be 2.5% after the ECB rate hike. Break fee is currently zero so should I just lock in the PTSB 5 year green rate at 2.8%, push on with the switching process and see what comes of it?I'm hearing its taking up to 12 weeks for some switches to go through so rates could even be higher by time we might drawdown.

Lenders are definitely going to increase their rates but nobody knows by how much or when. (It could be very soon.) You should contact PTSB tomorrow and ask them to post you a list of rates that you can re-fix at. In another post, a user of this site said:

I received options from PTSB by post and decided to fix for 7 years at 3%. The rates are valid for 30 days.

Those 30 days will buy you some time.

Finally,if we did lock in at PTSB 2.8% and broker got us a better rate, would the break fee be very high?

If you decide to go this route (re-fix now with PTSB but also start the process of switching to another lender), there are a couple of risks:

• You might become liable for brokers' fees and/or solicitors' fees if you abandon the switch (which you might want to do if rates increase). Check with some brokers and solicitors if you would be liable for fees in such a situation.
• As you realised, if you re-fix with PTSB now there might be a break fee when you finally leave PTSB. You could come back here periodically during the switching process and ask for an updated estimate of your break fee (or contact PTSB to get the break fee quote). You could abandon the switch if the break fee is getting too high.

 

[toby2111]

Thanks Paul.
I rang PTSB twice and told them I was switching....they didn't seem to care and just quoted the fixed rates available on their site. I rang again last Monday and asked to get a callback from a mortgage advisor from my local branch,maybe hoping that a face to face meeting might persuade them to offer me a lower rate. The customer rep said he was putting in a request for a callback........still waiting on that. Doubt it will even happen at this stage.

 

[Paul F]

Thanks Paul.
I rang PTSB twice and told them I was switching....they didn't seem to care and just quoted the fixed rates available on their site. I rang again last Monday and asked to get a callback from a mortgage advisor from my local branch,maybe hoping that a face to face meeting might persuade them to offer me a lower rate. The customer rep said he was putting in a request for a callback........still waiting on that. Doubt it will even happen at this stage.

Understood.

The most important thing to do now is to contact PTSB tomorrow and ask them to post you a list of rates that you can re-fix at. But the decision about what to do is ultimately yours.