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

Current lender: KBC
Outstanding mortgage balance: €204,000
Approximate current value of your property: €480,000
The date you started your fixed-rate mortgage: February 2021
How many years you fixed for: 3
Your current mortgage interest rate: 2.25%
Your current monthly repayment: €1139
Your property's BER: C1
Are you due to get extra cashback from your current lender in the future: No

Hi guys,

I'm considering doing a break and refix with KBC. I've read the post on how long does it take to refix with KBC and also the recommendations above on considering applying to alternative providers in case interest rates change during the application process so just interested to understand the best options to look at
 
@airgead07 Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with Permanent TSB. If it is higher than zero, please post it here when you receive it, including the date of the letter.
  • Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €2,320 over the next 4 years

  • Switching immediately to AIB's 5-year fixed rate (2.85% with €2,000 cashback) will save you about €1,180 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €740 over the next 4 years

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with €4,319 cashback) will leave you worse off by about €120 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • Note that Bank of Ireland discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Bank of Ireland customer right now, the best rate you would be able to switch to today is 3.0%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
    • Edit: this rate was increased to 3.55% on 10th November 2022

  • Switching immediately to Permanent TSB's 5- or 7-year fixed rate (3.0% with 2% monthly cashback) will leave you worse off by about €580 over the next 4 years – but with the longer security of 5 or 7 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • I would be grateful if you could find out if you are in fact eligible for the 2% monthly cashback. (You have to open an Explore account, but the Ts&Cs say that only new customers are eligible, whatever that means.)

  • Switching immediately to Avant Money's 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €1,660 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 (3.35% with €2,000 cashback) will leave you worse off by about €2,840 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 "One Mortgage" (a 3.4% fixed rate with no cashback) will leave you worse off by about €5,220 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 €1,533

  • Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €5,260 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • The monthly repayment would be €1,416

  • Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €6,080 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 €1,427

The above AIB and Haven rates include their rate increases of 14 October 2022. Permanent TSB and Bank of Ireland are expected to increase their rates soon.

These savings estimates use for comparison the scenario of switching to a 3% rate with Permanent TSB when the current fixed rate ends. And that's assuming that Permanent TSB are even offering a 3% rate in July 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 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).

Bear in mind that the interest rates of some lenders are very likely to 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. Ask Permanent TSB if they will guarantee today's rates for you if you start the process of re-fixing with them.
 
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@Paudie2605 Your break fee should be zero at the moment – but 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 Haven's 4-year green fixed rate (2.5% with €2,000 cashback) will save you about €1,660 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 (2.6% with no cashback) will save you about €480 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).
    • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
    • For the same reason, it is unlikely that there will be a break fee if you break out of this fixed rate to move home within the next 5 years

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with €2,563 initial cashback and 2% monthly cashback) will save you about €220 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • 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 Bank of Ireland's 10-year green fixed rate (3.0% with €2,563 cashback) will leave you worse off by about €180 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • Note that Bank of Ireland discriminate between new and existing customers, i.e., their best rates are not available to existing customers
    • For example, if you were an existing Bank of Ireland customer right now, the best rate you would be able to switch to today is 3.0%
    • So if you switch to them now, you will not be eligible to switch to one of their low rates in the future and you will end up on a higher interest rate. When that happens, you may want to switch again to another lender, which will incur costs (and it might be impossible to switch if your financial situation has deteriorated).
    • Edit: this rate was increased to 3.25% on 10th November 2022

  • Switching immediately to Haven's 7-year fixed rate (3.15% with €2,000 cashback) will leave you worse off by about €1,480 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 (3.35% with €2,000 cashback) will leave you worse off by about €2,440 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 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €2,540 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to AIB's 7-year fixed rate (3.45% with no cashback) will leave you worse off by about €3,620 over the next 4 years – but with the longer security of 7 years on a fixed rate. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to AIB's 10-year fixed rate (3.6% with no cashback) will leave you worse off by about €4,360 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 €4,720 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • The monthly repayment would be €752

  • Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €5,200 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 19 years)
    • The monthly repayment would be €758

The above AIB and Haven rates include their rate increases of 14 October 2022. Permanent TSB and Bank of Ireland are expected to increase their rates soon.

These savings estimates use for comparison the scenario of switching to a 2.6% rate with AIB when the current fixed rate ends. And that's assuming that AIB are even offering a 2.6% rate in November 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 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).

Bear in mind that the interest rates of some lenders are very likely to 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. Ask AIB if they will guarantee today's rates for you if you start the process of re-fixing with them.

If you use a broker and they tell you that your mortgage balance is too low to switch, find another broker.
 
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@stebag In the below estimates I have assumed a break fee of €2,629 – but it is volatile. In your case, the break fee is extra volatile because there is so long left on your fixed rate.
  • Switching immediately to Permanent TSB's 5-year green fixed rate (2.35% with €5,748 initial cashback and 2% monthly cashback) will save you about €10,000 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 (2.5% with €2,000 cashback) will save you about €3,740 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 Permanent TSB's 7-year fixed rate (3.0% with €5,748 initial cashback and 2% monthly cashback) will save you about €2,860 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to AIB's 5-year green fixed rate (2.65% with €2,000 cashback) will save you about €2,080 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)
    • For the same reason, it is unlikely that there will be a break fee if you break out of this fixed rate to move home within the next 5 years

  • Switching immediately to Haven's 7-year fixed rate (3.15% with €5,000 cashback) will leave you worse off by about €500 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 Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€3,100) cashback) will save you about €720 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Haven's 10-year fixed rate (3.35% with €5,000 cashback) will leave you worse off by about €2,740 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 "One Mortgage" (a 3.65% fixed rate with no cashback) will leave you worse off by about €11,160 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 27 years)

The above AIB and Haven rates include their rate increases of 14 October 2022. Permanent TSB and Bank of Ireland are expected to increase their rates soon.

These savings estimates use for comparison the scenario of doing nothing. You would get the Bank of Ireland €3,100 future cashback in such a scenario, and the savings estimates account for this. The estimates also account for any fees (break fee, solicitors' fees, valuation fee) that you have to pay and any cashback offered by the above lenders.

All of Avant's 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).

Bear in mind that the interest rates of some lenders are very likely to 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. Ask Bank of Ireland if they will guarantee today's rates for you if you start the process of re-fixing with them.

You are considering starting the process of switching to PTSB. 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 after you have engaged their services (which you might want to do if PTSB's rates increase too much). Check with some brokers and solicitors if you would be liable for fees in such a situation.
  • BOI's break fee could go higher than it is now. You could contact BOI periodically during the switching process and ask for an updated break fee quote. You could abandon the switch if the break fee is getting too high.
Keep an eye on this swap rate:
  • If it falls from today's level, your break fee will increase
  • If it increases from today's level, your break fee will fall. If the rate gets to about 3.15% or higher, your break fee should be zero.
 
  • Current lender - BOI
  • Outstanding mortgage balance (how much you still owe) - 250,000
  • Approximate current value of your property - 550,000
  • The date you started your fixed-rate mortgage (month and year) Nov 2017
  • How many years you fixed for - 5
  • Your current mortgage interest rate - 2.8
  • Your current monthly repayment (excluding any overpayments) - 1,500 approx
  • 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? - ~2,500 this week
I have already received AIP from PTSB via a broker for their 5 year fixed rate of 2.55% but have questioned why I have not been offered the option of a 4 year 2.05% rate. Any help in understanding which is best for my situation would be welcome, thanks
 
Hi Paul

Thanks very much for your help, it is such great advice. We have looked at all of the options and have decided to re-fix with AIB 2.6% 5year Green Mortgage, pending our LTV amendment but this shouldn't be an issue. We have in writing that our breakage fee is €0. I am just wondering about the overpayment clause? I read the thread you posted but I do not fully understand it. When I asked AIB today about overpayments they said that we could not overpay. Would it be the case that we would just have to try submitting an overpayment?

Thanks again, Paudie
 
Any AIB customer on a fixed rate can overpay but they will be subject to an early repayment charge (also called a break fee). What the other thread says is that the early repayment charge is very likely to be zero for the foreseeable future on some of AIB's fixed rates – and their green rate is one such rate. But, for safety, you should always request an early repayment charge quote from AIB before making an overpayment.

Note that Bank of Ireland's fixed rates were increased by 0.25% today (for new customers).
 
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@Warren 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 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €5,820 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 KBC's 5-year fixed rate (2.4% with no cashback) will save you about €3,700 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% (and that is expected to rise to 3.25% soon)
    • 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 5- or 7-year fixed rate (3.0% with €4,079 initial cashback and 2% monthly cashback) will save you about €2,800 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 Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €1,980 over the next 4 years

  • Switching immediately to AIB's 5-year fixed rate (2.85% with €2,000 cashback) will save you about €980 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €460 over the next 4 years

  • Switching immediately to KBC's 10-year fixed rate (2.85% with no cashback) will save you about €280 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 Haven's 7-year fixed rate (3.15% with €2,000 cashback) will leave you worse off by about €1,300 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 7-year fixed rate (2.95% with no cashback) will leave you worse off by about €1,820 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 (3.35% with €2,000 cashback) will leave you worse off by about €2,840 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 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €5,260 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 €6,040 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 18 years)

Permanent TSB are expected to increase their rates soon. KBC might also do so.

These savings estimates use for comparison the scenario of switching to a 3.25% 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 3.25% rate in February 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 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).

Bear in mind that the interest rates of some lenders are very likely to 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).
 
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@Tomred37 You have a very expensive tracker. You should probably switch to PTSB's 7-year fixed rate (3.0%). You might want to do the same for the portion of your mortgage that is currently on a fixed rate. (The break fee should be zero.)

One reason why you might not want to fix is if you plan to move home in the next few years. But even in such a case you could fix for, e.g., 3 or 5 years (so that you reduce the size of any possible break fee when you move).

If you want estimates of the savings from switching to another lender, let me know.

PTSB may increase their rates very soon, so act quickly if you want to fix.
 
T
Thanks Paul F , that's what we were thinking, we're not moving anytime soon and the break free is €0 on both mortgages. We don't want to go through the hassle of switching bank.
 
@jeffwode Your break fee should be zero (or tiny), as long as you haven't re-fixed with Bank of Ireland recently.
  • Switching immediately to Permanent TSB's 5-year fixed rate (2.55% with €5,000 initial cashback and 2% monthly cashback) will save you about €8,840 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).
    • You must draw down a mortgage of at least €250k to be eligible for this rate

  • Switching immediately to Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €8,400 over the next 4 years
    • The same warnings as above regarding higher Permanent TSB rates in the future apply
    • It seems that you should have been offered this rate, but as you can see the 2.55% PTSB rate (with cashback) is slightly better value

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with €5,000 initial cashback and 2% monthly cashback) will save you about €4,700 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to AIB's 4-year fixed rate (2.65% with €2,000 cashback) will save you about €3,780 over the next 4 years

  • 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 7-year fixed rate (3.15% with €5,000 cashback) will save you about €2,140 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 5-year fixed rate (2.65% with no cashback) will save you about €1,760 over the next 4 years

  • Switching immediately to Haven's 10-year fixed rate (3.35% with €5,000 cashback) will save you about €260 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% with no cashback) will not save you or cost you anything 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 €1,040 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 €2,960 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 AIB's 10-year fixed rate (3.6% with €2,000 cashback) will leave you worse off by about €5,080 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 €5,160 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 €1,775

  • Switching immediately to Avant Money's 10-year fixed rate (3.4% with no cashback) will leave you worse off by about €5,240 over the next 4 years – but with the longer security of 10 years on a fixed rate
    • The monthly repayment would be €1,574

  • Switching immediately to Avant Money's "One Mortgage" (a 3.5% fixed rate with no cashback) will leave you worse off by about €6,180 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 18 years)
    • The monthly repayment would be €1,587

Bank of Ireland's rate increases of 10th November 2022 do not apply to existing BOI customers (for the moment), and so they have not been applied when generating the above estimates. Permanent TSB are expected to increase their rates soon.

These savings estimates use for comparison the scenario of re-fixing on the 3% rate with Bank of Ireland this month. 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 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).

Bear in mind that the interest rates of some lenders are very likely to 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. Ask Bank of Ireland if they will guarantee today's rates for you if you start the process of re-fixing with them.
 
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  • Current lender - BOI
  • Outstanding mortgage balance (how much you still owe) - 370,000
  • Approximate current value of your property - 500,000
  • The date you started your fixed-rate mortgage (month and year) Aug 2018
  • How many years you fixed for - 5
  • Your current mortgage interest rate - 3
  • Your current monthly repayment (excluding any overpayments) - 1,724
  • 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? - ~1% after 5 years (just over 4K in August 2023)
I was considering breaking my current fixed term and fixing with BOI for 5 years at the same rate (3%) which would presumably allow me keep the cashback next year. However the PTSB 4 year rate looks great although it might be too late now to switch before it is increased. Any tips on the best approach would be appreciated, thanks!
 
@srun365 Your break fee should be zero at the moment – but 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 €7,400 initial cashback and 2% monthly cashback) will save you about €9,560 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 Permanent TSB's 4-year fixed rate (2.05% with 2% monthly cashback) will save you about €9,160 over the next 4 years
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to Permanent TSB's 7-year fixed rate (3.0% with €7,400 initial cashback and 2% monthly cashback) will save you about €3,220 over the next 4 years – but with the longer security of 7 years on a fixed rate
    • The same warnings as above regarding higher Permanent TSB rates in the future apply

  • Switching immediately to AIB's 4-year fixed rate (2.7% with €2,000 cashback) will save you about €740 over the next 4 years

  • Re-fixing immediately on Bank of Ireland's 5-year fixed rate (3.0% and you would get the 1% (€4,090) 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 Avant Money's 4-year fixed rate (2.65% with no cashback) will leave you worse off by about €580 over the next 4 years

  • Switching immediately to Haven's 7-year fixed rate (3.15% with €5,000 cashback) will leave you worse off by about €2,700 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 5-year fixed rate (2.85% with no cashback) will leave you worse off by about €3,440 over the next 4 years

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% and you would get the 1% (€4,090) cashback) will leave you worse off by about €4,460 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 Haven's 10-year fixed rate (3.35% with €5,000 cashback) will leave you worse off by about €5,580 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 7-year fixed rate (3.15% with no cashback) will leave you worse off by about €7,740 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 (3.6% with no cashback) will leave you worse off by about €14,200 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 3.75% fixed rate with no cashback) will leave you worse off by about €16,380 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 26 years)

Bank of Ireland's rate increases of 10th November 2022 do not apply to existing BOI customers (for the moment), and so they have not been applied when generating the above estimates. Permanent TSB are expected to increase their rates soon.

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 August 2023 – it could be higher (or lower). You would get the Bank of Ireland €4,090 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 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).

Bear in mind that the interest rates of some lenders are very likely to 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. Ask Bank of Ireland if they will guarantee today's rates for you if you start the process of re-fixing with them.

Another possibility is to re-fix immediately with BOI and simultaneously start the process of switching to other lenders. 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 after you have engaged their services (which you might want to do if the other lenders' rates increase too much). Check with some brokers and solicitors if you would be liable for fees in such a situation.
  • You might face a break fee when breaking out of your new BOI fixed rate. You could contact BOI periodically during the switching process and ask for an updated break fee quote. You could abandon the switch if the break fee is getting too high.
 
Many thanks for the detailed response Paul, in the end I am only drawing a mortgage of 245K so have opted for the 2.05% over 4 years, it was offered after I asked. Just waiting on the formal offer now, hopefully the rates dont increase in the meantime!
 
Hi Everyone,
hoping this is in the right forum.

I recently fell out of a fixed mortgage with BOI and am looking for direction, ultimately I don't know whether I should fix with BOI for 3-5 years at 3% or try and switch my mortgage. I am also hearing it is taking months to switch at present.

here are my details
  • Current lender BOI
  • If your current lender is Permanent TSB, was your mortgage transferred to them from Ulster Bank?
  • Outstanding mortgage balance (how much you still owe) 130K
  • Approximate current value of your property 380k
  • The date you started your fixed-rate mortgage (month and year) Not on a fixed mortgage, currently variable at 3.9%
  • How many years you fixed for N\A
  • Your current mortgage interest rate 3.9 Variable rate
  • Your current monthly repayment (excluding any overpayments) I overpay on my mortgage, I pay 1000, would like to clear in 12-14 years
  • Your property's BER (Building Energy Rating) – check it here or estimate it if necessary assume A as new house
  • 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?

again hoping I have this in the correct thread
thanks
Reg
 
any ideas
 
@regvw Because you are on a variable-rate mortgage, you do not have to pay a break fee.
  • Switching immediately to Haven's 4-year green fixed rate (2.5% with €2,000 cashback) will save you about €7,140 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 (2.6% with €2,000 cashback) will save you about €6,660 over the next 4 years
    • And it is quite likely that you will be able to make unlimited overpayments without penalty for the foreseeable future (see this thread)
    • For the same reason, it is unlikely that there will be a break fee if you break out of this fixed rate to move home within the next 5 years

  • Switching immediately to Avant Money's 4-year fixed rate (2.45% with no cashback) will save you about €5,340 over the next 4 years

  • Switching immediately to Avant Money's 5-year fixed rate (2.65% with no cashback) will save you about €4,400 over the next 4 years

  • Switching immediately to Bank of Ireland's 5-year fixed rate (3.0% with no cashback) will save you about €4,240 over the next 4 years. And it is very simple and quick to do (no bank statements, salary cert or solicitor, etc., needed).

  • Switching immediately to Haven's 7-year fixed rate (3.15% with €2,000 cashback) will save you about €4,080 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 (3.35% with €2,000 cashback) will save you about €3,140 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 7-year fixed rate (2.95% with no cashback) will save you about €3,000 over the next 4 years – but with the longer security of 7 years on a fixed rate

  • Switching immediately to Bank of Ireland's 10-year fixed rate (3.3% with no cashback) will save you about €2,680 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 AIB's 10-year fixed rate (3.6% with €2,000 cashback) will save you about €1,960 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 save you about €880 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 save you about €880 over the next 4 years – and the interest rate will remain fixed for the remainder of your mortgage term (approximately 14 years)

Bank of Ireland's rate increases of 10th November 2022 do not apply to existing BOI customers (for the moment), and so they have not been applied when generating the above estimates. This benefit could be removed quite soon.

These savings estimates use for comparison the scenario of staying on the variable rate with Bank of Ireland and assume that that rate doesn't change between now and November 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 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).

Bear in mind that the interest rates of some lenders are very likely to 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.
 
Current lender Pepper
Outstanding mortgage balance (how much you still owe) 142k
Approximate current value of your property 375k
Your current mortgage interest rate 5.75
Your current monthly repayment (excluding any overpayments)
Your property's BER (Building Energy Rating) – B2
 
What is your current monthly repayment (excluding any overpayments)?

Are you renting out the property or is it your home?

Do you face any barriers to switching? E.g., an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage?
 
Currently in ARA and paying 900 per month. Living in home. Ive a part capital and full interest with them recently did CCR credit check and all clear for last 5 years so basically would like to switch to lower rate and get full payments with a lump sum due at end of mortgage.
Also ideally would like a cashback switch
 
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