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

Thanks for that Paul, it’s much appreciated. I’m planning on contacting Ulster Bank on Monday so will certainly post back here when I receive the break fee amount from them.
 
Current lender: UB
Outstanding mortgage balance: 310k
Approximate value of your property: 600k
The date you started your fixed-rate mortgage: Jan 2021
How many years you fixed for: 5
Your current mortgage interest rate: 2.2%
Your current monthly repayment: €1998
Your property's BER: A3
Are you due to get extra cashback from your current lender in the future: nope
 
@davel Your break fee should be zero, but confirm it with Ulster Bank (and please post it here when you receive it).

Switching immediately to Avant's 1.95% rate fixed for up to 7 years will save you about €2,800 over the next four years (versus staying on UB's 2.2% rate), and that's after accounting for fees and cashback.

Of course, if you decide to stay with UB, you will probably want to switch again in 4 years when your fixed rate expires and your mortgage moves onto Permanent TSB's books, at which point you will be subject to their (probably higher) interest rates.

The above savings estimate assumes that you start the switch to Avant before the end of March and use a broker who is an Avant "Gold Partner", so that you are eligible for the €1,500 cashback.

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 €5,800 in four years' time (versus staying on a 2.2% rate with UB). Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, which isn't bad considering the €5k cashback.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.1% rate, fixed for 10 years.
 
Last edited:
Thanks for creating this post! Any advice on our less than ideal situation appreciated.

Current lender: KBC
Outstanding mortgage balance: 310k
Approximate value of your property: 410k (we overpaid for the property at the time so despite recent increase in prices, ours has only just returned to silly price we paid unfortunately. We have made about 17k in overpayments plus invested 30k in home improvements so our situation is not great)
The date you started your fixed-rate mortgage: Jan 18
How many years you fixed for: 10 on 70% (70% fixed & 30% variable)
Your current mortgage interest rate: 3.5% on both fixed and variable portion
Your current monthly repayment: 1550 approx
Your property's BER: D2
Are you due to get extra cashback from your current lender in the future: Nope!
 
Last edited:
Hi there, many thanks for this - any advice would be much appreciated!

Current lender: BOI
Outstanding mortgage balance: 280k
Approximate value of your property: c470 - 500k (bought for 420k in 2018, increase based on sales of similar houses on road recently)
The date you started your fixed-rate mortgage: Sep 2018
How many years you fixed for: 5 years
Your current mortgage interest rate: 2.9%
Your current monthly repayment: 1640 approx (paying over 20 years)
Your property's BER: C3
Are you due to get extra cashback from your current lender in the future: Yes, c3200 in Sep 2023
 
Hello,

Thanks for this. We are looking to move to Avant Money:
  • Current lender - KBC
  • Outstanding mortgage balance (how much you still owe) - €128,051
  • Approximate value of your property €550,000
  • The date you started your fixed-rate mortgage (month and year) 20/09/2018
  • How many years you fixed for 5 years
  • Your current mortgage interest rate 2.6% (2.4% with KBC current a/c discount)
  • Your current monthly repayment (excluding any overpayments) - €700 approx.
  • Your property's BER (Building Energy Rating) – Not known, house was renovated in 2017 so should be high
  • Are you due to get extra cashback from your current lender in the future - No
Thanks in advance,
Robert
 
Your break fee should be around €2,250 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC (and please post it here when you receive it, especially if it is significantly different from this estimate).

You could switch immediately to Avant's 2.15% rate, fixed for 7 years. You would save about €17,700 over the next 5 years (versus staying with KBC and assuming your variable rate stays at 3.5%), and that's after accounting for fees and cashback.

The above savings estimate assumes that you start the switch to Avant before the end of March and use a broker who is an Avant "Gold Partner", so that you are eligible for the €1,500 cashback.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.3% rate, fixed for 10 years.
 
Last edited:
Your break fee should be around €2,050 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with BOI (and please post it here when you receive it).

You could switch immediately to Avant's 1.95% rate, fixed for 7 years. You would save about €5,450 over the next 5 years (versus staying with BOI and moving onto their 2.9% rate when the current fixed rate is up), and that's after accounting for fees and the €3,200 cashback from BOI. And that's assuming that BOI are even offering a 2.9% rate in 18 months from now – it could be higher (or lower).

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.1% rate, fixed for 10 years.

You will need to get a property valuation of €470k or above to be eligible for these Avant rates.

You may be tempted to wait until Sept 2023 before switching in order to get the BOI cashback and avoid the break fee (about €5,250 when added together). Nobody can tell you the right thing to do, but consider that it will take you only 2 years on the 1.95% Avant rate to save that amount in interest, so switching now seems sensible. If you wait, Avant's rates might go up.
 
Last edited:
Your break fee should be around €600 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC (and please post it here when you receive it).

Switching immediately to Avant's 1.95% rate fixed for up to 7 years will save you about €1,100 over the next three years (versus switching immediately to KBC's 2.25% 3-year fixed rate), and that's after accounting for fees and cashback.

Of course, if you decide to stay with KBC and switch to their 2.25% rate, you will probably want to switch again in 3 years when your fixed rate expires and your mortgage moves onto Bank of Ireland's books, at which point you will be subject to their (probably higher) interest rates.

The above savings estimate assumes that you start the switch to Avant before the end of March and use a broker who is an Avant "Gold Partner", so that you are eligible for the €1,500 cashback.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.1% rate, fixed for 10 years.
 
  • Current lender AIB
  • Outstanding mortgage balance approx €290K, with 22 years mortgage term left
  • Approximate value of your property €550K
  • Your current mortgage interest rate 3.15% variable
  • Your current monthly repayment (excluding any overpayments) €1541
  • Your property's BER (Building Energy Rating) – B3
  • Are you due to get extra cashback from your current lender in the future, No

I would appreciate advice on what mortgage to switch to. We have been with AIB for a long time and should have switched alot sooner.

Also this may be a silly question but our repayment each month is always the same at €1541 yet we are on a variable rate for years... Does the monthly repayment not adjust as you pay off the mortgage? I would have thought it only stays the same if you are fixed?

Thanks
 
@housebound As you are on a variable rate, there is no break fee to pay if you switch mortgages.
  • Switching immediately to Haven's 4-year fixed green rate (2.0% with €2,000 cashback) will save you about €13,200 over the next four years
  • Switching immediately to Avant's 1.95% rate fixed for up to 7 years will save you about €11,700 over the next four years
  • Switching immediately to AIB's 5-year fixed green rate (2.15%) will save you about €10,850 over the next four years – and is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed)
All of the above savings estimates use the scenario of staying on AIB's 3.15% rate as a baseline (and assume that that rate doesn't change). The estimates also account for fees and cashback where applicable.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.1% rate, fixed for 10 years.

To be eligible for either of the green rates listed above, you will need a BER cert that shows a B3 (or better) rating and is less than 10 years old. Do you have such a cert?

Can you confirm your outstanding mortgage balance? Your loan-to-value (LTV) ratio is currently around 53% (€290k/€550k). If you were to get it below 50% (e.g., by a combination of a higher property valuation and/or a lump sum overpayment), you would be eligible for AIB's 2.1% green rate. The savings would be about €11,400 over four years.

Your monthly repayment only changes if the interest rate on your mortgage changes. It doesn't fall as your outstanding balance falls. What does fall as your outstanding balance falls is the amount of interest you are paying each month (whereas the amount you are paying off the principal increases each month) – see this calculator for your current mortgage.
 
Last edited:
Thanks Paul, Im tempted to just stick with AIB and move to their 5yr green rate at 2.15% for ease of not having to go through solicitors, salary cert, bank statements etc

I do have a valid B3 Ber cert until July 2023.

The remaining mortgage balance is just under 290k and the house was valued at 550k in Dec 2021 so no room to manoeuvre a higher valuation there. I dont know is it really worth paying a lump sum to get it under tge 50% LtV?
 
housebound said:
The remaining mortgage balance is just under 290k and the house was valued at 550k in Dec 2021 so no room to manoeuvre a higher valuation there. I dont know is it really worth paying a lump sum to get it under tge 50% LtV?
Click to expand...
Was the valuation done by one of AIB's chosen valuers? If so, I'm wondering why you weren't put on AIB's 2.95% variable rate, which you are eligible for since your LTV is under 80%.

Anyway, apply immediately for the 2.15% green rate. If your December valuation was not done by an AIB valuer, they may make you get one that is. €150 – well worth it.

Paying €15k of a lump sum is too much just to get a 0.05% reduction in interest rate.
 
The valuation was done by an AIB valuer at our request, but the problem was we got bogged down with Christmas, covid etc and let it slip and didnt do anything about applying to AIB to change the rate .. I will get onto it now straight away, thanks Paul I really appreciate your advice.
 
Cool, makes sense. After you switch to AIB's green rate (which should be very quick), there is nothing stopping you applying to switch to Avant through a broker – if you have the appetite for it. You would have a low fixed rate guaranteed for 7 or 10 years. (It's a bit slow but not very stressful because there isn't really a deadline.) If you go that route, you are very unlikely to have a break fee when breaking out of AIB's green rate.

One thing to check with the Avant broker is whether or not you would be liable to pay them a fee if you pulled out half way through the switch. You might want to do that if Avant put their rates up before you completed the switch.
 
Last edited:
  • Current lender KBC
  • Outstanding mortgage balance approx €280K, with 25.5 years mortgage term left
  • Approximate value of your property €520K
  • Your current mortgage interest rate 3.2% fixed, I fixed for 10 years, 6.5 remaining
  • Your current monthly repayment (excluding any overpayments) €1350
  • Your property's BER (Building Energy Rating) – A2
  • Are you due to get extra cashback from your current lender in the future, No

I've asked KBC for a redemption fee yesterday and will post once received
 
Hi Paul, have applied to Avant for a switch with the intention of getting their 1.95% rate for LTV less than 60%. Called PTSB a few weeks ago and was quoted around €950 break fee. Still can't understand how they calculate it.

Would be grateful for your thoughts and calculations on the below.

Current lender: PTSB
Outstanding mortgage balance approx €350k, with 31 years left.
Approximate value of your property €600k (hoping to get this valuation for >60% LTV with Avant
Your current mortgage interest rate 3.1% fixed. Fixed for 5 years, 1 year remaining.
Your current monthly repayment: €1,464
Your property's BER – D something
Are you due to get extra cashback from your current lender in the future, No lump sum, but we do get a monthly €30 from PTSB

Thank you.
 
You must log in or register to reply here.
Menu
Log in
Register