- Current lender: PTSB
- Outstanding mortgage balance (how much you still owe): €215k
- Approximate value of your property: €650k
- The date you started your fixed-rate mortgage (month and year): June 2021
- How many years you fixed for: 3
- Your current mortgage interest rate: 2.95%
- Your current monthly repayment (excluding any overpayments): €1,696 plus life cover of 138 total 1834.00 per month
- Your property's BER (Building Energy Rating) – estimated if necessary: no idea.
- 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 and when?: NO
- no break penalty applicable per p/call with PTSB today (valid only for 10 days apparently per PTSB)
- term left is 12 years 9 months
@warrendublin
- Switching immediately to AIB's 5-year fixed rate (2.35% with €2,000 cashback) will save you about €5,080 over the next 4 years
- Switching immediately to Haven's 7-year fixed rate (2.65% with €2,000 cashback) will save you about €2,820 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 €2,300 over the next 4 years
- Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will save you about €1,300 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 €780 over the next 4 years
- Switching immediately to Permanent TSB's 5- or 7-year fixed rate (3.0% with no cashback) will leave you worse off by about €400 over the next 4 years – but with the longer security of up to 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 AIB's 10-year fixed rate (3.1% with €2,000 cashback) will leave you worse off by about €600 over the next 4 years – but with the longer security of 10 years on a fixed rate
- Switching immediately to Finance Ireland's 10-year fixed rate (2.9% with no cashback) will leave you worse off by about €1,120 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
- 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 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 €4,940 over the next 4 years – but with the longer security of 10 years on a fixed rate
- Switching immediately to Avant Money's "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €4,940 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 13 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 Permanent TSB, 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 when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 2.95% rate in June 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.
You should call Permanent TSB and tell them that you have started the process of switching to another lender. Ask them what interest rates they will offer you to break and re-fix with them. Please post a summary of their response here.
All of Avant's rates, and Finance Ireland's 10-year and longer fixed rates, allow you to avoid any potential break fee if you move home in the future (as long as you take out a new mortgage with them, and subject to certain conditions). And in the case of Finance Ireland you can "take your mortgage with you" – meaning that you get to keep the same interest rate when you move (provided that at least 3 years have passed since you started the Finance Ireland fixed rate and subject to certain other conditions).
Bear in mind that interest rates are very likely to rise between now and the time that you complete any switch to another lender, 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. Ask Permanent TSB if they will guarantee today's rate for you if you start the process of re-fixing with them.
Are you really not getting about €34 per month from PTSB into your Explore account (2% monthly cashback)?
LOL not that i'm aware of!
I have a joint account for about 100 years...sorry about 30 anyway.
how do i find out if it's an explore account? whats the cashback thing about?
It's possible that the 2% monthly cashback was only available to new mortgage customers. But if you decide to re-fix with Permanent TSB, ask them if you are eligible to get this cashback from now on.
NOTE - I want to up the monthtly repayment to 1,900 per month - how much would this reduce the term by?
In the above estimates I have assumed that you
don't shorten your mortgage term or increase your monthly repayments. But if you went for PTSB's 3.0% rate and said to them that you wanted to increase your monthly repayment to €1,900 (as your
normal monthly repayment), your term would shorten to about 11 years.
Note that doing so might not be a great idea (it could stretch you financially) or even necessary. Many lenders (including PTSB) allow you to make large overpayments without penalty – see
this thread.
If you do switch to another lender, make sure that you do whatever is required to keep your life cover in place.