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

@Autumn54 @downtheroad Could you both tell me:
  • The date you started your fixed-rate mortgage (month and year)
Here are all the bits of info I ask for:

Thanks
 
Apologies Paul, I also missed that piece of info when copying and pasting a template. Fixed rate started in April 2018 (mortgage was taken out then on a 35 year basis).
 
Thanks for this

Current lender: UB
Outstanding mortgage balance: 400k
Approximate value of your property: 685k
The date you started your fixed-rate mortgage: May 2020
How many years you fixed for: 5
Your current mortgage interest rate: 2.2%
Your current monthly repayment: €1772
Your property's BER: C2
Are you due to get extra cashback from your current lender in the future: no
 
Hi Paul,

Thanks for your time on this:

  • Current lender - UB
  • Outstanding mortgage balance (how much you still owe) - 330k
  • Approximate value of your property - Who knows but well over 1m so LTV probably isnt a consideration
  • The date you started your fixed-rate mortgage (month and year) March 2018
  • How many years you fixed for - 5
  • Your current mortgage interest rate - 2.5%
  • Your current monthly repayment (excluding any overpayments) - 2,638
  • Your property's BER (Building Energy Rating) – 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 and when? - No
 
Hi Paul,

Thanks for setting up this thread, it has been v informative in general.

I got a breakage fee in Dec 2021 of e2,464 which seems v high considering some of the details in the thread.

Current lender. BOI
Outstanding mortgage balance (how much you still owe). e312K
Approximate value of your property. e600K
The date you started your fixed-rate mortgage (month and year). self build, so first drawdown Jan 2019,final drawdown June 2020

How many years you fixed for. 5 years from initial drawdown
Your current mortgage interest rate 3.00%
Your current monthly repayment (excluding any overpayments). e1408
Your property's BER (Building Energy Rating) – estimated 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 and when 1% (e3.2k) 5 years after final drawdown

Many thanks!
 
Your break fee should be around €900 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with KBC (and please post it here when you receive it). In your case, it is extra volatile because there is so long left on your fixed rate.
  • Switching immediately to Haven's 4-year fixed green rate (2.0% with €2,000 cashback) will save you about €12,500 over the next four years
  • Switching immediately to Avant's 1.95% rate (no cashback) fixed for up to 7 years will save you about €11,000 over the next four years
The above savings estimates use the scenario of staying on KBC's 3.2% rate as a baseline. The estimates also account for fees and cashback where applicable.

Note: the Avant estimate assumes that you are not eligible for the €1,500 cashback. To be eligible, the switch to Avant has to be underway before the end of March and you must use a broker who is an Avant "Gold Partner". I don't know what "underway" means but if you are inclined to try to beat the deadline you could talk to an Avant Gold Partner as soon as possible and see if it is possible.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.1% rate, fixed for 10 years.
 
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My estimate of your break fee at the moment is €1,950 but it is only an estimate. If PTSB quoted you €950 a few weeks ago, I'd say they will quote you a similar amount to that or slightly less now. Contact them for an updated break fee (and please post it here when you receive it).

Let's assume the break fee is €1,950.

Switching immediately to Avant's 1.95% rate fixed for up to 7 years will save you about €14,000 over the next five years. This savings estimate uses as a baseline the scenario of staying on PTSB's 3.1% fixed rate and then switching to their 2.95% fixed rate when that expires. (And that assumes that a 2.95% rate is even available in a year's time.) The estimate also accounts for fees.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 2.1% 10-year fixed rate or their 2.25% 15-year fixed rate.

If you don't get a valuation above €583k, the Avant 7-year fixed rate will be 2.05%, which will cost you an extra €1,700 or so in interest over 5 years. If you have some spare cash, you could consider overpaying a lump sum before switching so that the LTV goes below 60%
 
Your break fee should be zero at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with UB (and please post it here when you receive it).

Switching immediately to Avant's 1.95% rate fixed for up to 7 years will save you about €3,200 over the next five years (versus breaking immediately and re-fixing with Ulster Bank so that you "reset the clock" and get another 5 years on UB's 2.2% rate). The estimate also accounts for fees.

Note: the Avant savings estimate assumes that you are not eligible for the €1,500 cashback. To be eligible, the switch to Avant has to be underway before the end of March and you must use a broker who is an Avant "Gold Partner". I don't know what "underway" means but if you are inclined to try to beat the deadline you could talk to an Avant Gold Partner as soon as possible and see if it is possible.

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

If you don't get a valuation above €667k, the Avant 7-year fixed rate will be 2.05%, which will cost you an extra €1,850 or so in interest over 5 years. If you have some spare cash, you could consider overpaying a lump sum before switching so that the LTV goes below 60%
 
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  • Current lender boi
  • Outstanding mortgage balance (how much you still owe) €137000
  • Approximate value of your property €300000
  • The date you started your fixed-rate mortgage (month and year) June 2017
  • How many years you fixed for 5
  • Your current mortgage interest rate 3.2
  • Your current monthly repayment (excluding any overpayments) €678
  • Your property's BER (Building Energy Rating) – estimated if necessary unknown
  • Are you due to get extra cashback from your current lender in the future, e.g., "1% after 5 years", or "2% cashback monthly"? If so, how much and when? No cashback due
  • Got breakage fee last week of €245 would be first time switching thinking of aib 2.35 5 year
Thanks for looking
 
Really appreciate that Paul, thank you. When I get confirmation of the break fee I will be sure to post here.
 
downtheroad said:
Really appreciate that Paul, thank you. When I get confirmation of the break fee I will be sure to post here.
Click to expand...
I forgot to account for the €30 monthly cashback you are getting from PTSB when estimating your savings. Taking that into account, you would "only" save €12,250 over the next five years by switching to Avant's 1.95% rate
 
Hi Paul,

Is it worth our while switching?

  • Current lender - BOI
  • Outstanding mortgage balance (how much you still owe) - 112K
  • Approximate value of your property - €450k
  • The date you started your fixed-rate mortgage (month and year) 10/07/2020
  • How many years you fixed for - 5
  • Your current mortgage interest rate - 3%
  • Your current monthly repayment (excluding any overpayments) - €784.17
  • Your property's BER (Building Energy Rating) – estimated if necessary - C3
  • Are you due to get extra cashback from - No
Currently paying €1400 pm with ~ 89 months left if continuing at 3% at this level of overpayment.
We would like to increase payments to €1700 pm if possible
BOI say we could break our current fixed payments for a fee of €0 and restart a new five year fixed term of 3% and increase the amount by having a temporary variable rate at the new payment amount before re-fixing at the higher monthly amount (works around fixed rate overpayment limitations).

Thanks.
 
Hi Paul,

Some great info in this thread

  • Current lender - P TSB
  • Outstanding mortgage balance (how much you still owe) €144,551
  • Approximate value of your property - €220,000
  • The date you started your fixed-rate mortgage (month and year) April 2020
  • How many years you fixed for - 3 (1 year left)
  • Your current mortgage interest rate - 2.85%
  • Your current monthly repayment (excluding any overpayments) - €853.50
  • Your property's BER (Building Energy Rating) – C3
  • Are you due to get extra cashback from your current lender in the future, e.g., - 2% per month €17.17
We have about €30,000 in savings at the mo, so debating whether to drop 24K into the mortgage and overpay to get under 60% LTV and see if we can get a better rate maybe. Any advice appreciated!
 
Current lender: Haven
Outstanding mortgage balance: 153k
Approximate value of your property: 325k
The date you started your fixed-rate mortgage: April 2018
How many years you fixed for: 5
Your current mortgage interest rate: 3.3%
Your current monthly repayment: €864
Your property's BER: B2
Are you due to get extra cashback from your current lender in the future: No

Rang Haven today and got a breakage fee of 538.21 (valid for 5 days). If I've calculated this correctly using the historical interbank rates posted previously (https://produkte.erstegroup.com/Ret...=eur+int+rate+swap&ISIN=&ID_NOTATION=15237115), I get a lower breakage fee (approx. half what I was quoted).
 
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Your break fee should be around €2,350 at the moment – but it is volatile because wholesale interest rates are volatile, so confirm it with UB (and please post it here when you receive it).
  • Switching immediately to Haven's 4-year fixed green rate (2.0% with €2,000 cashback) will save you about €1,850 over the next four years
  • Switching immediately to Permanent TSB's 5-year fixed rate (2.55% with €6,600 cashback) will save you about €2,400 over the next four years – but their future rates may be higher than Haven's
These savings estimates use as a baseline the scenario of staying on UB's 2.5% fixed rate and then switching to their 2.2% fixed rate when that expires. (And that assumes that a 2.2% rate is even available in a year's time.) The estimates also account for fees and cashback.

If you're feeling brave, you could consider the strategy outlined in this thread: switch to Haven's 2.35% 3-year fixed rate and get the €5k cashback. Then quickly switch to Haven's 2.0% green rate. If it works, you will be better off by about €4,850 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.

There is a similar strategy with EBS (see @Brendan Burgess's third post in this thread), but it is higher risk in the sense that you will be stuck on a 2.9% rate if they don't allow the second switch.

If you're prepared to settle for smaller savings in exchange for a longer fixed rate, consider Avant's 1.95% rate, fixed for 7 years. You are probably too late to be eligible for the €1,500 cashback from Avant. To be eligible, the switch to Avant has to be underway before the end of March and you must use a broker who is an Avant "Gold Partner". I don't know what "underway" means but if you are inclined to try to beat the deadline you could talk to an Avant Gold Partner as soon as possible and see if it can be done.
 
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Hi Paul,

Super helpful, appreciate your time put into this.
  • Current lender - UB
  • Outstanding mortgage balance (how much you still owe) 119K
  • Approximate value of your property - 350,000k
  • The date you started your fixed-rate mortgage (month and year) July 2018
  • How many years you fixed for 5 years
  • Your current mortgage interest rate 2.6%
  • Your current monthly repayment (excluding any overpayments) €750
  • Your property's BER (Building Energy Rating) – estimated 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 and when? No
 
Hi Paul,

Would also be interested to know my possible options
  • Current lender - KBC
  • Outstanding mortgage balance (how much you still owe) - 130,000
  • Approximate value of your property - 450,000
  • The date you started your fixed-rate mortgage (month and year) - April 2018
  • How many years you fixed for
    • 10 Years Fixed - 75%
    • Variable - 25%
  • Your current mortgage interest rate
    • 10 Years Fixed - 2.95%
    • Variable - 3.00%
  • Your current monthly repayment (excluding any overpayments) - 620
  • Your property's BER (Building Energy Rating) – 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 and when? - No
 
Hi Paul,

Great theead and very useful information. I would be interested to know my options, for the below details.

  • Current lender: BOI
  • Outstanding mortgage balance: €235,000
  • Approximate value of your property: €390,000
  • The date you started your fixed-rate mortgage (Nov 2018)
  • How many years you fixed for: 5
  • Your current mortgage interest rate: 2.8%
  • Your current monthly repayment: €1,157
  • Your property's BER: C3
  • Are you due to get extra cashback from your current: 1% of drawdown due in March 2022 - approx €2,900
was quoted break fee of €397 this week.

Thanks
 
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