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

cheirin123 · 4 Sep 2022

Paul F said:
@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.

Thanks Paul, would BOI 4 year fixed at 1.9% not be an option?

Paul F · 4 Sep 2022

cheirin123 said:
Thanks Paul, would BOI 4 year fixed at 1.9% not be an option?

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%
- Existing customers are not even eligible for the 0.3% "green" discount that new customers with a BER of B3 or better get
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).

CúplaMadra · 5 Sep 2022

Current lender: Haven variable rate 2.95
Outstanding mortgage balance: 197,000
Approximate current value of your property: 410,000
The date you started your fixed-rate mortgage: n/a
How many years you fixed for: n/a
Your current mortgage interest rate: 2.95%
Your current monthly repayment: 964
Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: C2
Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? N/a

Hi.
I am looking for some advice on what fixed rate mortgage to move to.
We were in the process of going for the 1.95 avant rate but missed the deadline for it.
I fear any new rate we go for will have changed before the paperwork etc is done so I am considering picking one of the existing Haven fixed rates for simplicity.
Both the 3 year 2.35 rate and the 5 year 2.55 rate are both better than my current rate.
Without having a crystal ball to predict what the rates will be in 3 or 5 years....is it always best to go for the lowest rate? In this case 2.35 3 year fixed?
Thanks!

JohnB1 · 5 Sep 2022

Paul F said:
@JohnB1 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 AIB's 4-year fixed rate (2.2% with €2,000 cashback) will save you about €6,000 over the next 4 years

Switching immediately to Ulster Bank's 5-year fixed rate (2.2% with no cashback) will save you about €5,460 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 3.0%

So if you switch to this Ulster Bank offer now, you will probably not be eligible to switch to one of Permanent TSB's low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).

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

Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,840 over the next 4 years – but with the longer security of 7 years on a fixed rate

Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €1,540 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 save you about €1,100 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 €1,180 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 €1,420 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 €4,060 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 €4,640 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 €5,220 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 €9,860 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 €11,020 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 announced on 12 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 2.95% 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 2.95% rate in January 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).

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. (Perhaps you have, in which case this doesn't apply to you.) 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).

Current Ulster Bank mortgage customers can still apply for a topup but the deadline for applying is 26 August 2022. If you decide to re-fix with Ulster Bank but don't apply for the topup by that date, you will have to wait until Permanent TSB take over your mortgage before you can get a topup, and it will be at Permanent TSB's very high topup rate, currently 3.95% – see this thread. And it is a variable rate so it could increase.

The interest rate on AIB's topups is the same as their mortgage rates – see their topup mortgage webpage.

You would need to contact the other lenders, or a broker who works with them, to find out their rules around topups.

Thanks @Paul F - just to update, we requested and received a letter from UB stating zero break fee, which is great. Currently applying for the Haven 2.85% 10 year fixed via Bonkers.ie. I will update here as we go through the process

Paul F · 5 Sep 2022

JohnB1 said:
Thanks @Paul F - just to update, we requested and received a letter from UB stating zero break fee, which is great. Currently applying for the Haven 2.85% 10 year fixed via Bonkers.ie. I will update here as we go through the process

@JohnB1 Just a reminder that interest rates could rise between now and the time that you complete any switch, so you should apply simultaneously to two or more lenders for approval in principle (AIP).

Also be aware that it takes a long time to complete a switch to Haven, in the experience of some users of this site.

Anon55 · 6 Sep 2022

Current lender: AIB
Outstanding mortgage balance (how much you still owe): €431,000
Approximate current value of your property: ~ €605,000
The date you started your fixed-rate mortgage (month and year): Feb 2022
How many years you fixed for: 4 years
Your current mortgage interest rate: 2.15% (aib high value 4 year fixed)
Your current monthly repayment (excluding any overpayments): €1,554
Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: C1
Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when?: No

Any feedback very much appreciated! Thank you. We are considering moving to a longer term fixed rate (15 years with finance ireland) but not sure if its best to stick with current rate as its quite low

Paul F · 6 Sep 2022

Anon55 said:
Your current mortgage interest rate: 2.15% (aib high value 4 year fixed)

@Anon55 This rate doesn't seem correct. Can you check it again?

Anon55 · 6 Sep 2022

Paul F said:
@Anon55 This rate doesn't seem correct. Can you check it again?

Apologies Paul you're right it's actually 2.30%.

MaryB12 · 6 Sep 2022

Current lender: Avant fixed rate 1.95
Outstanding mortgage balance: 310,000
Approximate current value of your property: 800,000
The date you started your fixed-rate mortgage: Jan 21
How many years you fixed for: 3
Your current mortgage interest rate: 1.95%
Your current monthly repayment: 1916
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? N/a

Hi.
I am looking for some advice on if we should break out of our fixed rate mortgage with Avant and either move to a new lender with a longer fixed term albeit slightly higher fixed rate now or negogiate with Avant on a new fixed rate now. Not sure they will entertain this?
Current rate is low at 1.95 but ends in Jan 24
Thank you

SunnyOct8 · 6 Sep 2022

Current lender: KBC variable rate 3%
Outstanding mortgage balance: 234,000
Approximate current value of your property: 600,000
The date you started your fixed-rate mortgage: n/a
How many years you fixed for: n/a
Your current mortgage interest rate: 3%
Your current monthly repayment: 1493
Your property's BER (Building Energy Rating) – : C1
Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? N/a

Hi.
I am looking for some advice on what mortgage to move to.
We are currently with KBC but concerned that BOI will have the highest rates so wondering if we would be better off to move to a different supplier. I am self employed but between myself and my partner our income is over 50% of the mortgage so I don't think we will have an issue moving? We have both had health issues in recent years but I presume our mortgage protection just moves with the mortgage?
Also we have overpaid by 40k with KBC - on the basis that we could re-draw this if we needed it. I don't think any other banks offer this so I presume we will just lose this facility? We had fixed until March this year and didn't fix again as we hadn't decided what to do - wondering if we should fix and take the hit on break fees if we change provider ...
Thanks in advance for your help....

Paul F · 6 Sep 2022

CúplaMadra said:
Current lender: Haven variable rate 2.95

Outstanding mortgage balance: 197,000

Approximate current value of your property: 410,000

The date you started your fixed-rate mortgage: n/a

How many years you fixed for: n/a

Your current mortgage interest rate: 2.95%

Your current monthly repayment: 964

Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: C2

Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? N/a

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

Switching immediately to AIB's 3- or 5-year fixed rate (2.35% with €2,000 cashback) will save you about €3,980 over the next 3 years
Switching immediately to Haven's 3-year fixed rate (2.35% with no cashback) will save you about €3,420 over the next 3 years. And it is usually very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- Warning: it takes a long time to complete a switch from another lender to Haven, in the experience of some users of this site. But it is not known if the same slowness exists when a current Haven customer is simply (re-)fixing with them.
Switching immediately to Avant Money's 3-year fixed rate (2.25% with no cashback) will save you about €2,500 over the next 3 years
Switching immediately to Haven's 5-year fixed rate (2.55% with no cashback) will save you about €2,280 over the next 3 years. And it is usually very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- Warning: it takes a long time to complete a switch from another lender to Haven, in the experience of some users of this site. But it is not known if the same slowness exists when a current Haven customer is simply (re-)fixing with them.
Switching immediately to Haven's 7-year fixed rate (2.65% with no cashback) will save you about €1,700 over the next 3 years – but with the longer security of 7 years on a fixed rate. And it is usually very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- Warning: it takes a long time to complete a switch from another lender to Haven, in the experience of some users of this site. But it is not known if the same slowness exists when a current Haven customer is simply (re-)fixing with them.
Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €1,360 over the next 3 years
Switching immediately to Haven's 10-year fixed rate (2.85% with no cashback) will save you about €560 over the next 3 years – but with the longer security of 10 years on a fixed rate. And it is usually very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- Warning: it takes a long time to complete a switch from another lender to Haven, in the experience of some users of this site. But it is not known if the same slowness exists when a current Haven customer is simply (re-)fixing with them.
Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €220 over the next 3 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 €1,200 over the next 3 years – but with the longer security of 10 or 15 years on a fixed rate
- This product has a benefit in relation to moving home in the future that is explained below
Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €1,500 over the next 3 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 €1,780 over the next 3 years – but with the longer security of 20 years on a fixed rate
- This product has a benefit in relation to moving home in the future that is explained below
Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €4,080 over the next 3 years – but with the longer security of 10 years on a fixed rate
Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €4,660 over the next 3 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 24 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 Haven, since re-fixing with your current lender is usually quick to do.)

These savings estimates use for comparison the scenario of staying on the variable rate with Haven and assume that that rate doesn't change between now and September 2025 (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).

The estimates also assume that your loan-to-value ratio (LTV) really is below 50% so that you are eligible for the listed rates from AIB. (You are already eligible, in LTV terms, for all of the other listed rates.) Your LTV estimate is 197.0k/410.0k = 48.0%. If you want to switch to AIB and you get a valuation of less than €394k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 50%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

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.

CúplaMadra said:
Without having a crystal ball to predict what the rates will be in 3 or 5 years....is it always best to go for the lowest rate? In this case 2.35 3 year fixed?

No, we cannot say that it is always best to go for the lowest rate. That's because with lower rates you can usually only fix for a shorter period, whereas you might prefer the certainty offered by a longer fixed rate even though it will cost you more in the short/medium term. Only you can decide which you value more.

Also, if you think you might move home in the next few yours, you should not fix for a very long period (unless it's with Finance Ireland and you understand their "take your mortgage with you" terms and conditions). If you do fix for a very long period and you break out of the fixed rate in order to move home, you could face a large break fee.

Park43 · 6 Sep 2022

Current lender : BOI
Outstanding mortgage balance : €326,000
Approximate current value of your property : €745,000
The date you started your fixed-rate mortgage (month and year) : June 2018
How many years you fixed for : 5
Your current mortgage interest rate : 2.9%
Your current monthly repayment : €2,288
Your property's BER (Building Energy Rating) – D1 (estimate)
Are you due to get extra cashback from your current lender in the future : Yes (€4,000)

Paul F · 6 Sep 2022

Anon55 said:
Current lender: AIB
Outstanding mortgage balance (how much you still owe): €431,000
Approximate current value of your property: ~ €605,000
The date you started your fixed-rate mortgage (month and year): Feb 2022
How many years you fixed for: 4 years
Your current mortgage interest rate: [2.3%] (aib high value 4 year fixed)
Your current monthly repayment (excluding any overpayments): €1,554
Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: C1
Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when?: No

@Anon55 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 AIB's 4-year fixed rate (2.2% with no cashback) will save you about €1,300 over the next 4 years. And it is very simple and reasonably quick to do (no bank statements, salary cert or solicitor, etc., needed).
- But you will need an updated valuation from AIB, which will take at least a few days
Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will leave you worse off by about €2,580 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 €5,000 cashback) will leave you worse off by about €5,960 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 AIB's 7-year fixed rate (3.05% with no cashback) will leave you worse off by about €13,040 over the next 4 years – but with the longer security of 7 years on a fixed rate. And it is very simple and reasonably quick to do (no bank statements, salary cert or solicitor, etc., needed).
- But you will need an updated valuation from AIB, which will take at least a few days
Switching immediately to AIB's 10-year fixed rate (3.2% with no cashback) will leave you worse off by about €15,580 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and reasonably quick to do (no bank statements, salary cert or solicitor, etc., needed).
- But you will need an updated valuation from AIB, which will take at least a few days
Switching immediately to Finance Ireland's 10- or 15-year fixed rate (3.15% with no cashback) will leave you worse off by about €16,080 over the next 4 years – but with the longer security of 10 or 15 years on a fixed rate
- This product has a benefit in relation to moving home in the future that is explained below
- And your interest rate (initially 3.15%) will fall to 3.05% in 1 year 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.
- And your interest rate will fall again in the future
Switching immediately to Finance Ireland's 20-year fixed rate (3.25% with no cashback) will leave you worse off by about €17,780 over the next 4 years – but with the longer security of 20 years on a fixed rate
- This product has a benefit in relation to moving home in the future that is explained below
- And your interest rate (initially 3.25%) will fall to 3.15% in 1 year and 1 month when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
- And your interest rate will fall again in the future
Switching immediately to Finance Ireland's 25-year fixed rate (3.4% with no cashback) will leave you worse off by about €20,320 over the next 4 years – but with the longer security of 25 years on a fixed rate
- This product has a benefit in relation to moving home in the future that is explained below
- And your interest rate (initially 3.4%) will fall to 3.3% in 1 year and 1 month when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
- And your interest rate will fall again in the future

These savings estimates use for comparison the scenario of switching to a 2.2% rate with AIB when the current fixed rate ends. And that's assuming that AIB are even offering a 2.2% rate in February 2026 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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

I have not included rates for Permanent TSB or Avant because you cannot switch to them until you have been with your current lender for at least 12 months. Haven's rule in this regard is not known. See this thread for more details.

Be very careful if you are thinking about re-fixing with AIB. Firstly, you will need an updated valuation to be eligible for the above rates. That will take at least a few days. (Or you could skip the valuation and accept a rate that is 0.1% higher than the AIB rates given above.)

Secondly, AIB have the right to apply any rate increases that they announce between the time you post the completed mortgage amendment form to them and the time they actually process it – which is typically 2 weeks or a bit less.

So if you re-fix with AIB you might end up on a higher rate than those listed above, but that is also true if you switch to another lender.

Paul F · 6 Sep 2022

MaryB12 said:
Current lender: Avant fixed rate 1.95

Outstanding mortgage balance: 310,000

Approximate current value of your property: 800,000

The date you started your fixed-rate mortgage: Jan 21

How many years you fixed for: 3

Your current mortgage interest rate: 1.95%

Your current monthly repayment: 1916

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? N/a

@MaryB12 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Avant Money. 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 €6,200 initial cashback and 2% monthly cashback) will save you about €3,960 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 €2,100 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 €980 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 leave you worse off by about €2,720 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 switch to Haven's 7-year fixed rate (2.65% with €5,000 cashback), but be warned that 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 €3,520 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- Or you could re-fix on Avant Money's 3-year fixed rate (2.25% with no cashback)
Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will leave you worse off by about €4,500 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 €5,780 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 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €9,180 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 €10,100 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
Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €14,240 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- You would have to shorten your mortgage term to 15 years to be eligible for this rate
- The monthly repayment would be €2,201
Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €14,320 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 monthly repayment would be €2,130
Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €15,460 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 16 years). And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
- The monthly repayment would be €2,146

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.

While Avant's terms and conditions appear to say that you cannot switch to a different fixed rate before your current fixed rate ends, there are a few Avant customers on this forum who were allowed to do so without any difficulty.

These savings estimates use for comparison the scenario of switching to a 2.25% rate with Avant Money when the current fixed rate ends. And that's assuming that Avant Money are even offering a 2.25% rate in January 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).

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).

Paul F · 7 Sep 2022

SunnyOct8 said:
Current lender: KBC variable rate 3%

Outstanding mortgage balance: 234,000

Approximate current value of your property: 600,000

The date you started your fixed-rate mortgage: n/a

How many years you fixed for: n/a

Your current mortgage interest rate: 3%

Your current monthly repayment: 1493

Your property's BER (Building Energy Rating) – : C1

Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? N/a

@SunnyOct8 Because you are on a variable-rate mortgage, you do not have to pay a break fee.

Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €7,760 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 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 AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €6,140 over the next 4 years
Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €5,020 over the next 4 years. 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 '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).
- Or you could switch to KBC's 3-year fixed rate (2.25% with no cashback)
- Note that if you decide to do this, your interest rate won't change for 3 or 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
- 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 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 Permanent TSB's 7-year fixed rate (3.0% with €4,679 initial cashback and 2% monthly cashback) will save you about €4,360 over the next 4 years – but with the longer security of 5 or 7 years on a fixed rate
- The same warnings as above regarding higher Permanent TSB rates in the future apply
Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €3,560 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 €3,240 over the next 4 years
Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €1,840 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 save you about €1,520 over the next 4 years
Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will save you about €1,140 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 '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 €620 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 €1,060 over the next 4 years – but with the longer security of 7 years on a fixed rate
Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €4,920 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term
- You would have to shorten your mortgage term to 15 years to be eligible for this rate
- The monthly repayment would be €1,661
Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €4,960 over the next 4 years – but with the longer security of 10 years on a fixed rate
- The monthly repayment would be €1,539
Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €5,840 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 17 years)
- The monthly repayment would be €1,551

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 KBC and assume that that rate doesn't change between now and September 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).

SunnyOct8 said:
I am self employed but between myself and my partner our income is over 50% of the mortgage so I don't think we will have an issue moving? We have both had health issues in recent years but I presume our mortgage protection just moves with the mortgage?

Since you have mortgage protection insurance your health issues shouldn't matter.

Note that Avant have a reputation for being picky, so you should talk to a broker to see if your self-employed status would be an issue.

SunnyOct8 said:
Also we have overpaid by 40k with KBC - on the basis that we could re-draw this if we needed it. I don't think any other banks offer this so I presume we will just lose this facility?

KBC customers only have this redraw facility if they first took out their mortgage with KBC in about 2013 or earlier. In this thread (and here), user @gnf_ireland describes their long argument with KBC around being allowed to withdraw their overpayments. But your question about whether Bank of Ireland have to continue this feature for such KBC customers stands.

SunnyOct8 said:
We had fixed until March this year and didn't fix again as we hadn't decided what to do - wondering if we should fix and take the hit on break fees if we change provider

If you decide to go this route (re-fix now with KBC 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 fix with KBC now there might be a break fee when you finally leave KBC. You could come back here periodically during the switching process and ask for an updated estimate of your break fee (or contact KBC to get the break fee quote). You could abandon the switch if the break fee is getting too high.

MaryB12 · 7 Sep 2022

Paul F said:
@MaryB12 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Avant Money. 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 €6,200 initial cashback and 2% monthly cashback) will save you about €3,960 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 €2,100 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 €980 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 leave you worse off by about €2,720 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 switch to Haven's 7-year fixed rate (2.65% with €5,000 cashback), but be warned that 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 €3,520 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

Or you could re-fix on Avant Money's 3-year fixed rate (2.25% with no cashback)

Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will leave you worse off by about €4,500 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 €5,780 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 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €9,180 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 €10,100 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

Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €14,240 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

You would have to shorten your mortgage term to 15 years to be eligible for this rate

The monthly repayment would be €2,201

Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €14,320 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 monthly repayment would be €2,130

Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €15,460 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 16 years). And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

The monthly repayment would be €2,146

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.

While Avant's terms and conditions appear to say that you cannot switch to a different fixed rate before your current fixed rate ends, there are a few Avant customers on this forum who were allowed to do so without any difficulty.

These savings estimates use for comparison the scenario of switching to a 2.25% rate with Avant Money when the current fixed rate ends. And that's assuming that Avant Money are even offering a 2.25% rate in January 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).

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 for taking the time to reply , I've gone back to Avant to see what they offer. I'm reluctant to go through the switching process yet again !

Paul F · 7 Sep 2022

Park43 said:
Current lender : BOI

Outstanding mortgage balance : €326,000

Approximate current value of your property : €745,000

The date you started your fixed-rate mortgage (month and year) : June 2018

How many years you fixed for : 5

Your current mortgage interest rate : 2.9%

Your current monthly repayment : €2,288

Your property's BER (Building Energy Rating) – D1 (estimate)

Are you due to get extra cashback from your current lender in the future : Yes (€4,000)

@Park43 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 fixed rate (2.55% with €6,519 initial cashback and 2% monthly cashback) will save you about €7,960 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 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 AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €6,280 over the next 4 years
Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,420 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 €5,000 cashback) will save you about €1,060 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 €740 over the next 4 years
Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€4,000) cashback) will leave you worse off by about €260 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €1,620 over the next 4 years
Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€4,000) cashback) will leave you worse off by about €3,980 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 10-year fixed rate (2.9% with no cashback) will leave you worse off by about €4,560 over the next 4 years – but with the longer security of 10 years on a fixed rate
- This product has a benefit in relation to moving home in the future that is explained below
- You can probably fix for 15 years at 2.9% if you want to
Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €5,160 over the next 4 years – but with the longer security of 7 years on a fixed rate
Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €10,500 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 3.4% fixed rate with no cashback) will leave you worse off by about €10,500 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 15 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 June 2023 – it could be higher (or lower). You would get the Bank of Ireland €4,000 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing (though probably only in the short term in your case, since your current fixed rate expires relatively soon).

Park43 · 8 Sep 2022

Paul F said:
@Park43 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 fixed rate (2.55% with €6,519 initial cashback and 2% monthly cashback) will save you about €7,960 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 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 AIB's 4-year fixed rate (2.15% with €2,000 cashback) will save you about €6,280 over the next 4 years

Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €3,420 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 €5,000 cashback) will save you about €1,060 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 €740 over the next 4 years

Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€4,000) cashback) will leave you worse off by about €260 over the next 4 years. But it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will leave you worse off by about €1,620 over the next 4 years

Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€4,000) cashback) will leave you worse off by about €3,980 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 10-year fixed rate (2.9% with no cashback) will leave you worse off by about €4,560 over the next 4 years – but with the longer security of 10 years on a fixed rate

This product has a benefit in relation to moving home in the future that is explained below

You can probably fix for 15 years at 2.9% if you want to

Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €5,160 over the next 4 years – but with the longer security of 7 years on a fixed rate

Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €10,500 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 3.4% fixed rate with no cashback) will leave you worse off by about €10,500 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 15 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 June 2023 – it could be higher (or lower). You would get the Bank of Ireland €4,000 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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).

Even though it is usually quick to re-fix with your current lender, it is still possible for rates to rise while you are in the middle of the process, which could potentially leave you worse off than if you had done nothing (though probably only in the short term in your case, since your current fixed rate expires relatively soon).

Thank you this is really helpful. Do we still receive the 1% cash back if we stay with BOI after breaking fixed term and then renewing mortgage with BOI ?

Paul F · 8 Sep 2022

Park43 said:
Do we still receive the 1% cash back if we stay with BOI after breaking fixed term and then renewing mortgage with BOI ?

I see nothing in the cashback Ts&Cs that would prevent you from getting the 1% cashback if you break and re-fix with BOI.

Up to 3% Cashback on your new mortgage - Bank of Ireland

Getting into your new home is great, but then you realise you need furniture and a new set of plates. This is when the Cashback Plus comes in handy

personalbanking.bankofireland.com

SunnyOct8 · 8 Sep 2022

Paul F said:
@SunnyOct8 Because you are on a variable-rate mortgage, you do not have to pay a break fee.

Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €7,760 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 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 AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €6,140 over the next 4 years

Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €5,020 over the next 4 years. 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 '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).

Or you could switch to KBC's 3-year fixed rate (2.25% with no cashback)

Note that if you decide to do this, your interest rate won't change for 3 or 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

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 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 Permanent TSB's 7-year fixed rate (3.0% with €4,679 initial cashback and 2% monthly cashback) will save you about €4,360 over the next 4 years – but with the longer security of 5 or 7 years on a fixed rate

The same warnings as above regarding higher Permanent TSB rates in the future apply

Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €3,560 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 €3,240 over the next 4 years

Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €1,840 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 save you about €1,520 over the next 4 years

Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will save you about €1,140 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 '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 €620 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 €1,060 over the next 4 years – but with the longer security of 7 years on a fixed rate

Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €4,920 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term

You would have to shorten your mortgage term to 15 years to be eligible for this rate

The monthly repayment would be €1,661

Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €4,960 over the next 4 years – but with the longer security of 10 years on a fixed rate

The monthly repayment would be €1,539

Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €5,840 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 17 years)

The monthly repayment would be €1,551

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 KBC and assume that that rate doesn't change between now and September 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).

Since you have mortgage protection insurance your health issues shouldn't matter.

Note that Avant have a reputation for being picky, so you should talk to a broker to see if your self-employed status would be an issue.

KBC customers only have this redraw facility if they first took out their mortgage with KBC in about 2013 or earlier. In this thread (and here), user @gnf_ireland describes their long argument with KBC around being allowed to withdraw their overpayments. But your question about whether Bank of Ireland have to continue this feature for such KBC customers stands.

If you decide to go this route (re-fix now with KBC 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 fix with KBC now there might be a break fee when you finally leave KBC. You could come back here periodically during the switching process and ask for an updated estimate of your break fee (or contact KBC to get the break fee quote). You could abandon the switch if the break fee is getting too high.

Thanks Paul - I appreciate the comprehensive review

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

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