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

[Paul F]

• Current lender. Ulster bank
• Outstanding mortgage balance (how much you still owe) 77000
• Approximate current value of your property 120000
• The date you started your fixed-rate mortgage (month and year) December 2020
• How many years you fixed for. Five
• Your current mortgage interest rate 2.6%
• Your current monthly repayment (excluding any overpayments) 325
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary D3 (estimated
• 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

@Darran M Your break fee should be zero at the moment – but it confirm it with Ulster Bank. If it is higher than zero, please post it here when you receive it, including the date of the letter.

Note: you will receive two separate letters from Ulster Bank a few days apart, and their structure and wording can lead to confusion. Look for the line that says something like: "Based on today's information this would result in an early redemption charge of €X to no longer be bound by this fixed rate." That amount is your break fee. Ignore all other references to break fees/breakage costs.

• Switching immediately to AIB's 5-year fixed rate (2.45% with €2,000 cashback) will save you about €1,180 over the next 4 years
  
  
• Switching immediately to Ulster Bank's 4- or 5-year fixed rate (2.45% with no cashback) will save you about €620 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 4 or 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 7-year fixed rate (2.65% with €2,000 cashback) will save you about €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 €2,000 cashback) will leave you worse off by about €20 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 €2,000 cashback) will leave you worse off by about €620 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Ulster Bank's 7- or 10-year fixed rate (2.95% with no cashback) will leave you worse off by about €860 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 AIB's 10-year fixed rate (3.2% with €2,000 cashback) will leave you worse off by about €1,060 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 (4.6% with no cashback) will leave you worse off by about €7,340 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  • And your interest rate (initially 4.6%) will fall to 4.45% in 3 years and 5 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
  
  
• Switching immediately to Finance Ireland's 15-year fixed rate (4.63% with no cashback) will leave you worse off by about €7,440 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  • And your interest rate (initially 4.63%) will fall to 4.48% in 3 years and 5 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (4.73% with no cashback) will leave you worse off by about €7,740 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  • And your interest rate (initially 4.73%) will fall to 4.58% in 3 years and 6 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.
  
  
• Switching immediately to Finance Ireland's 25-year fixed rate (4.88% with no cashback) will leave you worse off by about €8,200 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  • And your interest rate (initially 4.88%) will fall to 4.73% in 3 years and 6 months when you move into a lower loan-to-value bracket (or sooner if you make overpayments or your property increases in value and you get an updated valuation). See the section "How we decide rate reductions" on this page.

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 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.

All of 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).

The estimates also assume that your loan-to-value ratio (LTV) is currently 77.0k/120.0k = 64.2%. A higher property valuation (€129k) and/or a few more monthly mortgage payments and/or a lump sum overpayment would get you into a lower LTV bracket (< 60%), and you would be eligible for lower rates from Ulster Bank.

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 Ulster Bank if they will guarantee today's rates for you if you start the process of re-fixing with them.

You are not eligible to switch to Avant because your mortgage balance is too low.

Finance Ireland will only give you a mortgage if your property is worth at least €125k.

 

[Brego888]

• Current lender - KBC
• Outstanding mortgage balance (how much you still owe) - €278,000
• Approximate current value of your property - €500,000
• The date you started your fixed-rate mortgage (month and year) - Dec 2020
• How many years you fixed for - 3
• Your current mortgage interest rate - 2.3% (2.5 but with 0.2 discount as current account holder)
• Your current monthly repayment (excluding any overpayments) - €1126
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - A3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? - No

I've started the process of switching to AIB on their 2.1% green rate fixed for 5 years with €2000 cash back. Started 3 weeks ago and I have submitted all the documents they have currently asked for but I'm aware it's a very slow process. I have €30,000 that I am planning to put towards bringing the ltv rate below 50% for the 2.1% green rate.

My question is should I refix now much quicker with KBC on their 2.4% 5 year rate (2.6 but with the 0.2 current account discount)?
KBC have confirmed that their breakage few is zero.
My worry is if I wait too long with the AIB move I'll miss out on the current rates being offered.

Would it be prudent to fix now with KBC to lock in the 0.1% increase and then still consider my options with AIB over the next few months?
I'm aware that there could then be breakage fees with the longer KBC period.

 

[PolkaDotCabbage]

• Current lender. KBC
• Outstanding mortgage balance (how much you still owe) 226,637
• Approximate current value of your property 390,000
• The date you started your fixed-rate mortgage (month and year) September 2020
• How many years you fixed for. 5
• Your current mortgage interest rate 2.45% (current account discount)
• Your current monthly repayment (excluding any overpayments) 956.87
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: D1
• 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

I know most of the current offers will be a good bit more but I'm after a long term fix, even if it's a bit higher. I definitely value the certainty!

 

[poolfanabc]

• Current lender. BOI
• Outstanding mortgage balance (how much you still owe) 130k, 198k €328000 total
• Approximate current value of your property €670,000
• The date you started your fixed-rate mortgage (month and year) August 2022
• How many years you fixed for. 2
• Your current mortgage interest rate 2.9% fixed on 130k, 2.55% tracker on 198k.
• Your current monthly repayment (excluding any overpayments) 627 + 911 = €1538
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: A2
• 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

The 2.55% mortgage portion is a tracker mover, not so attractive rates now.
Checked with BOI last week, no breakage fee due on fixed portion.
Have started the switched process with AIB, as seems the best rate is their 2.1% 5yr fixed green mortgage, with €2k cash offer.
One of us has a PTSB current account, if that helps or hinders with any mortgage offers from them.

Wondering if any other mortgage providers to consider?

 

[Paul F]

2.55% tracker on 198k

Does this include the ECB rate increase of 0.75% on 8th September?

 

[poolfanabc]

Does this include the ECB rate increase of 0.75% on 8th September?

Last adjustment was from 2.05% to 2.55% on 02Sep, so no, the 0.75% adjustment yet to be applied to my account, so will be 3.3% shortly, yikes!!

 

[albh4566]

No idea. But bear in mind that interest rates of recent years have been extremely low by historical standards.


One option you could consider is to re-fix immediately with Bank of Ireland and also start the process of switching to another lender – applying to more than one at the same time.

If you decide to go this route, 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 too much). Check with some brokers and solicitors if you would be liable for fees in such a situation.
• If you re-fix with BOI now there might be a break fee when you finally leave BOI. You could come back here periodically during the switching process and ask for an updated estimate of your break fee (or contact BOI to get the break fee quote). You could abandon the switch if the break fee is getting too high.

thank you

 

[Paul F]

• Current lender - KBC
• Outstanding mortgage balance (how much you still owe) - €278,000
• Approximate current value of your property - €500,000
• The date you started your fixed-rate mortgage (month and year) - Dec 2020
• How many years you fixed for - 3
• Your current mortgage interest rate - 2.3% (2.5 but with 0.2 discount as current account holder)
• Your current monthly repayment (excluding any overpayments) - €1126
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary - A3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? - No

@Brego888

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,000 initial cashback and 2% monthly cashback) will save you about €8,460 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 AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €7,040 over the next 4 years
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €4,780 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 KBC's 5-year fixed rate (2.4% with no cashback) will save you about €3,480 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 'break and re-fix' requests, and they might increase their interest rates before they process yours – see this thread.
  • 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
  • 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 Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €2,860 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 €1,660 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 €240 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 €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.
  • The same warnings as above regarding higher Bank of Ireland rates in the future apply
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €3,120 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 €7,480 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €8,440 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 24 years)
  
  
• Switching immediately to Finance Ireland's 10-year fixed rate (4.45% with no cashback) will leave you worse off by about €17,700 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 15-year fixed rate (4.48% with no cashback) will leave you worse off by about €17,980 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (4.58% with no cashback) will leave you worse off by about €18,960 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below

These savings estimates use for comparison the scenario of switching to a 3% rate with Bank of Ireland when the current fixed rate ends. And that's assuming that Bank of Ireland (assuming they have taken over your mortgage by then) are even offering a 3% rate in December 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).

The estimates also assume that you reduce your mortgage balance to €250k (but no lower) and that you get a property valuation of €500k (or higher). This is in order to be eligible for the "high-value" rates from Permanent TSB and Haven that are listed above.

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).

My question is should I refix now much quicker with KBC on their 2.4% 5 year rate (2.6 but with the 0.2 current account discount)?
KBC have confirmed that their breakage few is zero.
My worry is if I wait too long with the AIB move I'll miss out on the current rates being offered.

Would it be prudent to fix now with KBC to lock in the 0.1% increase and then still consider my options with AIB over the next few months?
I'm aware that there could then be breakage fees with the longer KBC period.

See my above warning around this: 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.

If you do decide to go this route (re-fix now with KBC and continue with the switch to AIB or another lender), there are a couple other risks (apart from the one just mentioned):

• 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 too much). Check with some brokers and solicitors if you would be liable for fees in such a situation.
• If you re-fix with KBC now there might be a break fee when you finally leave KBC. This risk applies regardless of whether you re-fix now on KBC's 5-year rate or their 10-year rate. 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.

It is possible that any rate increases from AIB will leave their green rate at a level that is low enough that it still appeals to you – but we can't know for certain.

 

[Paul F]

• Current lender. KBC
• Outstanding mortgage balance (how much you still owe) 226,637
• Approximate current value of your property 390,000
• The date you started your fixed-rate mortgage (month and year) September 2020
• How many years you fixed for. 5
• Your current mortgage interest rate 2.45% (current account discount)
• Your current monthly repayment (excluding any overpayments) 956.87
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: D1
• 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

@PolkaDotCabbage Your break fee should be zero at the moment – but 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 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €3,600 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 (2.45% with €2,000 cashback) will save you about €1,520 over the next 4 years
  
  
• Switching immediately to KBC's 5-year fixed rate (2.4% with no cashback) will save you about €1,260 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 '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
  • 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 Haven's 7-year fixed rate (2.65% with €2,000 cashback) will leave you worse off by about €220 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 €520 over the next 4 years
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €2,000 cashback) will leave you worse off by about €1,980 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 €2,260 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 €2,680 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 Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €4,900 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to AIB's 10-year fixed rate (3.2% with €2,000 cashback) will leave you worse off by about €5,060 over the next 4 years – but with the longer security of 10 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 €8,860 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 €9,740 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 27 years)
  
  
• Switching immediately to Finance Ireland's 10-year fixed rate (4.45% with no cashback) will leave you worse off by about €18,200 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 15-year fixed rate (4.48% with no cashback) will leave you worse off by about €18,460 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (4.58% with no cashback) will leave you worse off by about €19,360 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 25-year fixed rate (4.73% with no cashback) will leave you worse off by about €20,700 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below

These savings estimates use for comparison the scenario of switching to a 2.9% rate with Bank of Ireland (who will probably own your mortgage) when the current fixed rate ends. And that's assuming that Bank of Ireland are even offering a 2.9% rate in September 2025 – it could be higher (or lower). The estimates also account for any fees (solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

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

The estimates also assume that your loan-to-value ratio (LTV) really is below 60% so that you are eligible for the listed rates. Your LTV estimate is 226.6k/390.0k = 58.1%. If you get a valuation of less than €378k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 60%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

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).

 

[Paul F]

• Current lender. BOI
• Outstanding mortgage balance (how much you still owe) 130k, 198k €328000 total
• Approximate current value of your property €670,000
• The date you started your fixed-rate mortgage (month and year) August 2022
• How many years you fixed for. 2
• Your current mortgage interest rate 2.9% fixed on 130k, 2.55% tracker on 198k.
• Your current monthly repayment (excluding any overpayments) 627 + 911 = €1538
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: A2
• 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

@poolfanabc

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €6,560 initial cashback and 2% monthly cashback) will save you about €13,160 over the next 4 years
  • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Permanent TSB customer right now, the best rate you would be able to switch to today is 2.8%
  • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €11,820 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 €10,580 over the next 4 years
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €6,680 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 €4,160 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 €4,160 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €1,660 over the next 4 years
  
  
• Switching immediately to AIB's 7-year fixed rate (2.95% with €2,000 cashback) will leave you worse off by about €100 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching both your fixed are tracker mortgages immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will leave you worse off by about €1,280 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 AIB's 10-year fixed rate (3.1% with €2,000 cashback) will leave you worse off by about €1,980 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €2,120 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching both your fixed are tracker mortgages immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will leave you worse off by about €5,220 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €7,820 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 €9,080 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 24 years)
  
  
• Switching immediately to Finance Ireland's 10-year fixed rate (4.45% with no cashback) will leave you worse off by about €21,220 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 15-year fixed rate (4.48% with no cashback) will leave you worse off by about €21,600 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (4.58% with no cashback) will leave you worse off by about €22,900 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below

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 Bank of Ireland, since re-fixing with your current lender is usually quick to do.)

For the above estimates I am pretending that your entire mortgage balance (€328k) is currently fixed at 2.9% with Bank of Ireland, and the estimates assume that you switch to a 2.9% rate with Bank of Ireland when the current fixed rate ends. But Bank of Ireland might not offer a 2.9% rate in August 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.

If you switch to any of the above rates you will lose your tracker and you will not get it back at the end of the fixed period.

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 AIB's green rate listed above. Your LTV estimate is 328.0k/670.0k = 49.0%. If you get a valuation of less than €656k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 50%. (You are comfortably eligible, from an LTV perspective, for all of the other rates listed above.)

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 Bank of Ireland if they will guarantee today's rates for you if you start the process of re-fixing with them.

 

[Brego888]

Thanks Paul, great effort and advice. I think I'll proceed with both refixing with KBC and the switch to AIB.
I'm not overly optimistic that either will come through before interest rates are increased but we can't control that.

 

[debbieharry]

@debbieharry Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Bank of Ireland. If it is higher than zero, please post it here when you receive it, including the date of the letter.

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €7,019 initial cashback and 2% monthly cashback) will save you about €13,120 over the next 4 years
  • Note that Permanent TSB discriminate between new and existing customers, i.e., their best rates are not available to existing customers
  • For example, if you were an existing Permanent TSB customer right now, the best rate you would be able to switch to today is 2.8%
  • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €11,720 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.15% with €2,000 cashback) will save you about €9,700 over the next 4 years
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €5,940 over the next 4 years – but with the longer security of 7 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €3,600 over the next 4 years
  
  
• Switching immediately to Haven's 10-year fixed rate (2.85% with €5,000 cashback) will save you about €3,220 over the next 4 years – but with the longer security of 10 years on a fixed rate
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,700) cashback) will save you about €1,320 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €900 over the next 4 years
  
  
• Switching immediately to Finance Ireland's 10- or 15-year fixed rate (2.9% with no cashback) will leave you worse off by about €2,500 over the next 4 years – but with the longer security of 10 or 15 years on a fixed rate
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€3,700) cashback) will leave you worse off by about €2,920 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €3,180 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (3.0% with no cashback) will leave you worse off by about €3,860 over the next 4 years – but with the longer security of 20 years on a fixed rate
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 25-year fixed rate (3.15% with no cashback) will leave you worse off by about €5,920 over the next 4 years – but with the longer security of 25 years on a fixed rate
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €9,340 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €10,700 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 27 years)

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

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

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

The estimates also assume that your loan-to-value ratio (LTV) really is below 60% so that you are eligible for the listed rates. Your LTV estimate is 351.0k/600.0k = 58.5%. If you get a valuation of less than €585k, you will need to make a few more monthly mortgage payments and/or a lump sum overpayment to get the LTV below 60%. But that is not a reason to delay the switch – i.e., you can start the switch immediately.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €14,720 in four years' time. Nobody knows for sure if Haven will allow you to do this, so you might be stuck on the 2.35% rate, but at least you'd have got the €5k cashback.

Bear in mind that interest rates could rise between now and the time that you complete any switch, so if you are thinking of switching you should apply simultaneously to two or more lenders for approval in principle (AIP).

An update - we have just drawn down on the PTSB switched mortgage. I started the conversation with PTSB on Sept 8 so with everything being very straightforward in our application and being proactive on provision of documents, we got it done in 4 weeks. My solicitor was proactive in getting on to BOI about releasing deeds etc also.

Happy we were able to get it done at 2.35%, with a ECB 0.75% increase early in the process I was concerned the offered rate would increase, but not yet.

Similarly, the break fee on the BOI mortgage remained zero.

Thanks again for the initial advice, much appreciated.

 

[Paul F]

An update - we have just drawn down on the PTSB switched mortgage. I started the conversation with PTSB on Sept 8 so with everything being very straightforward in our application and being proactive on provision of documents, we got it done in 4 weeks. My solicitor was proactive in getting on to BOI about releasing deeds etc also.

That's really fast! It's a pity the non-cashback lenders aren't as fast.

 

[jwhat04]

• Current lender BOI
• Outstanding mortgage balance (how much you still owe) €274,763.94
• Approximate current value of your property €600,000
• The date you started your fixed-rate mortgage (month and year) October 2018
• How many years you fixed for 5
• Your current mortgage interest rate 3%
• Your current monthly repayment (excluding any overpayments) €1,267.59
• 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

 

[Paul F]

• Current lender BOI
• Outstanding mortgage balance (how much you still owe) €274,763.94
• Approximate current value of your property €600,000
• The date you started your fixed-rate mortgage (month and year) October 2018
• How many years you fixed for 5
• Your current mortgage interest rate 3%
• Your current monthly repayment (excluding any overpayments) €1,267.59
• 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

@jwhat04 Your break fee should be zero at the moment – but it confirm it with Bank of Ireland. If it is higher than zero, please post it here when you receive it, including the date of the letter.

• Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,495 initial cashback and 2% monthly cashback) will save you about €11,760 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 2.8%
  • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
  
  
• Switching immediately to Haven's 4-year green fixed rate (2.0% with €2,000 cashback) will save you about €11,120 over the next 4 years
  • Warning: it takes a long time to complete a switch to Haven, in the experience of some users of this site
  
  
• Switching immediately to AIB's 5-year green fixed rate (2.1% with €2,000 cashback) will save you about €10,060 over the next 4 years
  • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
  
  
• Switching immediately to Haven's 7-year fixed rate (2.65% with €5,000 cashback) will save you about €7,260 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 €5,140 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 4-year fixed rate (2.45% with no cashback) will save you about €4,340 over the next 4 years
  
  
• Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €2,220 over the next 4 years
  
  
• Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will not save you or cost you anything over the next 4 years, but it will "reset the clock" on the fixed-rate period. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to AIB's 10-year fixed rate (3.1% with €2,000 cashback) will leave you worse off by about €520 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €960 over the next 4 years – but with the longer security of 7 years on a fixed rate
  
  
• Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will leave you worse off by about €3,360 over the next 4 years – but with the longer security of 10 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
  
  
• Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €5,760 over the next 4 years – but with the longer security of 10 years on a fixed rate
  
  
• Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €6,840 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 26 years)
  
  
• Switching immediately to Finance Ireland's 10-year fixed rate (4.45% with no cashback) will leave you worse off by about €17,060 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 15-year fixed rate (4.48% with no cashback) will leave you worse off by about €17,380 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 20-year fixed rate (4.58% with no cashback) will leave you worse off by about €18,460 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below
  
  
• Switching immediately to Finance Ireland's 25-year fixed rate (4.73% with no cashback) will leave you worse off by about €20,080 over the next 4 years
  • This product has a benefit in relation to moving home in the future that is explained below

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 Bank of Ireland, since re-fixing with your current lender is usually quick to do.)

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 October 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.

The savings estimates assume that you are not due to get 1% cashback (about €3,000) from Bank of Ireland in October 2023. Is that correct?

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 Bank of Ireland if they will guarantee today's rates for you if you start the process of re-fixing with them.

 

[iamaspinner]

Be aware that with Avant you can only make up to two overpayments per calendar year

@Paul F

Avant have confirmed by email (one reply per day, no phone number available) that I can make more than 2 payments per year and/or go over 10% of the balance subject to penalties.

They have also confirmed that in my case there will be no breakage costs if I go above 2 payments/10% and that there is no "time limit" on the quote other than end of year, as there will be a new balance on January 1st 2023.

 

[Paul F]

Avant have confirmed by email (one reply per day, no phone number available) that I can make more than 2 payments per year and/or go over 10% of the balance subject to penalties.

But what penalty would/could they charge you if you made more than 2 overpayments per year? Is there anything in your mortgage contract about penalties? (I'm not talking about breakage costs by overpaying by more than 10% of the balance. I'm wondering if the contract has any other penalty clauses.)

there is no "time limit" on the quote other than end of year, as there will be a new balance on January 1st 2023

Are you sure that you are understanding this part correctly? Break fee quotes are determined primarily by interbank interest rates, and most lenders say that their quotes only remain valid for about 10 days. It would be very strange for Avant to say that their quote was valid until the end of the year.

 

[flyingalexf68]

Hello. Help and figures appreciated on info below. Thanks

• Current lender. AIB
• Outstanding mortgage balance (how much you still owe) €255000
• Approximate current value of your property 450000
• The date you started your fixed-rate mortgage (month and year) May 2019
• How many years you fixed for. 5
• Your current mortgage interest rate 2.85%
• Your current monthly repayment (excluding any overpayments) €1309
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary A3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? No

 

[Tycho Station]

Hi - feedback on the below would be greatly appreciated

• Current lender. BOI
• Outstanding mortgage balance (how much you still owe) 380,000
• Approximate current value of your property 510,000
• The date you started your fixed-rate mortgage (month and year) July 2021
• How many years you fixed for. 2
• Your current mortgage interest rate 2.7% (current account discount)
• Your current monthly repayment (excluding any overpayments) 1812
• Your property's BER (Building Energy Rating) – check it here or estimate it if necessary: A3
• Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much (monetary amount) and when? Yes

 

[Paul F]

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

@Tycho Station How much cashback are you due to get and when?

Your current mortgage interest rate 2.7% (current account discount)

This is a "green" discount, not a current account discount.